Options in Real Estate Valuation

摘要

Real options analysis and financial option pricing models can and should be applied to real estate valuation, because they improve the accounting for value and risk. The theory and practice is well established in financial markets and business valuation. Real estate valuation opportunities include real estate purchase options, development options, abandonment and feasibility studies, and many other major real estate decisions. Special knowledge is required as the analyses require important adaptations and special uses of conventional real estate data.