Definition of IAEC Real Estate Comparison Standards

Table of Contents

Definition of IAEC Real Estate Comparison Base Value

Appraisal Reference Date

Definition of IAEC Real Estate Comparison Base Value

Scope of Appraisal

Limitations on the Authenticity of Submitted Materials

Basic Principles of Artificial Intelligence Search

Recording of Artificial Intelligence Search Logs

Appraisal Reference Date

Criteria for Adopting Comparative Materials

Criteria for Excluding Comparative Materials

Where Real Estate Comparison Standards Exist

Where Real Estate Comparison Standards Do Not Exist

Scope of Appraisal

Adjustment Calculation of Real Estate Comparison Base Value

Basis for Adjustment Coefficients

Nature of the Final Appraisal Price

Statement to Be Indicated in the Appraisal Report

Limitations on the Authenticity of Submitted Materials

Definition of IAEC Real Estate Comparison Base Value

IAEC real estate comparison base value means the starting base value for calculating an appraisal amount, determined by IAEC for the purpose of calculating the appraisal amount of a basic real estate appraisal, based on official record materials, land use planning materials, publicly announced price materials, actual transaction materials, nearby similar transaction materials, lease cases, market price materials, and public materials concerning real estate identical or similar to the real estate subject to appraisal.

The IAEC real estate comparison base value is not the final real estate appraisal price itself, but the reference point for calculating the real estate appraisal price.

The final real estate appraisal price is calculated by reflecting area, location, land category, zoning district, road conditions, shape, building status, transaction timing, rights status, use restrictions, and risk adjustment factors on the IAEC real estate comparison base value.

Appraisal Reference Date

Basic Principles of Artificial Intelligence Search

IAEC basic real estate appraisal is performed based on submitted materials, artificial intelligence search materials, and public materials as of the appraisal reference date.

The appraisal reference date means the reference date for determining the condition, rights relationship, usability, publicly announced price, actual transaction price, market price materials, and comparison base value of the real estate subject to appraisal.

Real estate prices may change depending on the passage of time, market conditions, changes in zoning district, development plans, transaction cases, rights relationships,

Recording of Artificial Intelligence Search Logs

and changes in publicly announced prices, and therefore the IAEC appraisal report

must indicate the appraisal reference date.

This basic real estate appraisal price is calculated based on submitted materials, artificial intelligence search materials, public materials, and verifiable comparative materials as of the appraisal reference date.

Criteria for Adopting Comparative Materials

Criteria for Excluding Comparative Materials

Scope of Appraisal

IAEC basic real estate appraisal is limited to calculating the basic value of the real estate subject to appraisal based on basic materials.

Where Real Estate Comparison Standards Exist

Where Real Estate Comparison Standards Do Not Exist

Certificate of registered matters; land use planning confirmation; land cadastre; building register or aggregate building register; individual publicly announced land price; apartment housing price; actual transaction price or nearby similar transaction materials; artificial intelligence search materials; public materials.

IAEC basic real estate appraisal, in principle, excludes matters requiring separate professional review, such as complex rights analysis, lease deposits, taxes, auction distribution, enforceability of security rights, rights relationships in litigation, possession relationships, liens, statutory superficies, and redevelopment or reconstruction rights relationships.

However, where the above matters are clearly confirmed in the submitted materials or in the certificate of registered matters, they may be indicated as limitations or reduction factors.

Adjustment Calculation of Real Estate Comparison Base Value

Limitations on the Authenticity of Submitted Materials

IAEC performs basic real estate appraisal based on the form, content, and mutual correspondence of the submitted materials.

IAEC does not guarantee whether the submitted materials are forged or altered, their public effect, legal authenticity, or final confirmation of rights relationships.

Whether the submitted materials are forged or altered, their legal authenticity, ownership disputes, the effect of rights relationships, or legal attribution relationships are subject to separate public confirmation, legal review, or professional appraisal.

Basis for Adjustment Coefficients

IAEC performs basic real estate appraisal based on the form, content, and mutual correspondence of the submitted materials, and whether the submitted materials are forged or altered or their legal authenticity is subject to separate public confirmation or professional appraisal.

Basic Principles of Artificial Intelligence Search

Before calculating the appraisal amount in a basic real estate appraisal, IAEC must basically search, through artificial intelligence search, for comparative materials identical, similar, or related to the real estate subject to appraisal.

Artificial intelligence first identifies the location, lot number, area, land category, rights status, zoning district, use district, use zone, building coverage ratio, floor area ratio, activity restrictions, and usability of the real estate subject to appraisal based on the certificate of registered matters and the land use planning confirmation.

Next, artificial intelligence searches the land cadastre, building register or aggregate building register, individual publicly announced land price, apartment housing price, actual transaction price, nearby similar transaction materials, lease cases, market price materials, public agency materials, and real estate market materials.

Nature of the Final Appraisal Price

For the searched materials, artificial intelligence must record the name of the material, source, confirmation date, target real estate, area, transaction amount or publicly announced price, price per unit area, similarity to the subject of appraisal, and limitations of the material.

Based on the artificial intelligence search results, IAEC distinguishes between cases where comparison standards exist and cases where comparison standards do not exist.

Recording of Artificial Intelligence Search Logs

IAEC must retain the process of artificial intelligence search performed for calculating real estate comparison base value in the appraisal report or in internal records.

Search date; search terms; searched materials; title of searched material; source of searched material; confirmed price or numerical value; reference time of comparative material; similarity to the subject of appraisal; whether the comparative material was adopted; reason for exclusion of comparative material; reason for adoption as comparison base value; reason for correction or adjustment. The search log is a record for confirming that the appraisal price was not calculated arbitrarily, but was calculated through artificial intelligence search and review of comparative materials.

Statement to Be Indicated in the Appraisal Report

Criteria for Adopting Comparative Materials

IAEC may adopt, as comparative materials, artificial intelligence search materials that satisfy the following criteria.

The material must be similar to the real estate subject to appraisal in location, zoning district, land category, area, use status, or price formation factors, and the source of the material must be verifiable.

Definition of IAEC Real Estate Comparison Base Value

IAEC real estate comparison base value means the starting base value for calculating an appraisal amount, determined by IAEC for the purpose of calculating the appraisal amount of a basic real estate appraisal, based on official record materials, land use planning materials, publicly announced price materials, actual transaction materials, nearby similar transaction materials, lease cases, market price materials, and public materials concerning real estate identical or similar to the real estate subject to appraisal.

Numerical values such as price, area, transaction timing, or publicly announced price must be verifiable; it must not be excessively remote in time from the appraisal reference date; it must be related to the usability or price formation factors of the real estate subject to appraisal; and it must be material within the same or a similar market area. IAEC determines whether to adopt comparative materials by comprehensively considering the above criteria.

The IAEC real estate comparison base value is not the final real estate appraisal price itself, but the reference point for calculating the real estate appraisal price.

Criteria for Excluding Comparative Materials

Among artificial intelligence search materials, IAEC may exclude the following materials from the calculation of comparison base value or use them only as auxiliary materials.

Materials with unclear sources; materials whose price or area cannot be confirmed; materials substantially different from the subject of appraisal in location, zoning district, land category, use status, or scale; materials whose transaction timing is excessively remote from the appraisal reference date; advertised asking-price materials that are not actual transaction prices; materials that are difficult to compare directly with the subject of appraisal; and materials whose legal restrictions or rights status are unclear. Where materials are excluded, the reason for exclusion must be recorded.