Asset Appraisal Method Based on the Analytic Network Process

Asset appraisal is an important issue in any country. Interest in the appraisal field is justified by the large number of cases where the estimation of the value of the assets is needed: sales transactions, expropriations, heritage divisions, mortgages, etc. Due to the increasing economic development of the countries and to the increasing complexity of the appraisal problems, it becomes more and more necessary to make better and more accurate valuations. This work presents an application of the Analytic Network Process (ANP) to asset appraisal. The purpose of this methodology is to solve some of the drawbacks found in classical appraisal methods, which cannot deal with contexts where only partial information is available and/or qualitative variables are used. The ANP is a method based on the Multiple Criteria Decision Analysis (MCDA). The ANP provides an accurate approach for modeling complex environment because it allows the analysis of the quantitative and qualitative explanatory variables of the price and the incorporation of feedback and interdependence relationships among variables. The proposed methodology has been applied to a case study of a retail space located in Valencia (Spain)..