An Evaluation Model for Property-Purchasing Plans Based on a Hybrid Multi-Criteria Decision-Making Model

Jun-Kun Lin, Hung-Lung Lin, William Yu Chung Wang, Ching-Hui Chang and Chin-Tsai Lin
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Jun-Kun Lin: Taipei Municipal Lao-Song Elementary School, No. 64, Guilin Rd., Wanhua District, Taipei 108, Taiwan
Hung-Lung Lin: School of Economics and Management, San Ming University, No. 25, Ching-Tung Rd., Sanming 365004, China
William Yu Chung Wang: Waikato Management School, University of Waikato, private Bag 3105, Hamilton 3240, New Zealand
Ching-Hui Chang: Department of Accounting, Ming Chuan University, 250 Zhong Shan North Road, Section 5, Taipei 111, Taiwan
Chin-Tsai Lin: Department of Business Administration, Ming Chuan University, 250 Zhong Shan North Road, Section 5, Taipei 111, Taiwan

Mathematics, 2020, vol. 8, issue 6, 1-18

Abstract: Purchasing a property entails making rankings, comparisons, and trade-offs among various housing characteristics. When trying to sell a house, real estate brokers take on an important role as a middle-person between the seller and buyer. Thus, this research sets up a dynamic price recommendation method for housing purchases and applies the fuzzy multiple criteria decision making (FMCDM) technique, so as to realize housing quality and evaluation. We utilize this method based on the prospect theory of the loss aversion effect, in order to aid real estate brokers’ job of coordinating between the seller and buyer. The method helps us to provide an objective view of the evaluation matrix. From the pricing strategy, the results are able to match price versus quality and improve brokers’ intermediation effects. The brokers can subsequently make recommendations regarding a suitable price, decisions on negotiation strategies to reach an agreement, and settle upon an acceptable price.

Keywords: aspiration level; house-purchasing decision; multiple criteria decision making (MCDM); prospect theory; reference point (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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