Financial and numerical techniques used in real estate valuation: An application with topsis and new multiple criteri models

In this study, a model is developed to determine the performance of real estates in five different district of Izmir using criteria features of them and starting from this model, it?s tried to be detemined how more or less, market value of first three real estate which has shown the best performance, defined from the price they really should be. In the study firstly, TOPSIS method ,which is based on multiple criteria decision making approach, is used to determine the performance of real estates respect to the criterias. After, New Multiple Criteria Method which is again a multiple decision making method and developed by Vida Maliene, Arturas Kaklauskas and Edmundas Kazimieras is used for the real estates which are ranked respect to their performance by TOPSIS method. TOPSIS is a multipurpose decision-making method which allows the evaluation of all criteria together by taking into account the specific weight of all. TOPSIS method, has a common use area by having a well founded logic structure, taking into account anti ? ideal and ideal solutions at the same time and having a simple calculation procedure. The New Multiple Criteria model, which is applied as a second model in the study, is based on market valuation and decison making principles and is in line with traditional comparative techniques. For this reason method, it can be considered within a indirectly comparative valuation techniques.In the implementation of the TOPSIS method, decision matrix was created by using nine different criteria for each real estate and TOPSIS score was calculated for each one. Real estates was ranked according to the TOPSIS score which was calculated seperately for each criterion and the selection is made in terms of the customers who want to have real estate . Then, the values of the Real Estates that considered to be purchased were calculated by New Multiple Criteria model.