The real estate market is considered to be an important element of the economic system. The fact that processes occurring within the real estate market have a significant impact on the economy developing has been confirmed by recent events both in Latvia and globally. In turn, one of the major factors influencing the development of real estate and transaction processes within the real estate market is the subjective assessment of the object of the transaction on the part of the buyer and seller in regard to its use in the best and most effective manner. A real estate valuation is comprised of many aspects, the majority of which have been studied and described in detail in economic science. Unfortunately, in economic science, the assessment of the possibilities of real estate development is mostly reduced to the so-called PESTE-SWOT analysis which incorporates an assessment of real estate strengths and weaknesses, opportunities and threats from the perspective of political, economic, social, technical and ecological aspects. In real life, a PESTE-SWOT analysis is required to ascertain the amount of investment required for real estate development and the potential period for return on investment. However, it is not enough to use this method only for reducing potential threats to the successful outcome of the economic process in question. Other factors are also present which to date have been subjected to less research and which directly influence the decisions of buyers and sellers to buy or sell real estate for a certain price. One such factor is the subjective emotional aspect of real estate valuation based on the uniqueness of the real estate involved in the transaction and the limited nature of the information at the disposal of the buyer. In conducting a survey of professionals working in the real estate market, it was ascertained that it is this – the subjective emotional aspect – which is of greater significance according to the Pareto principle in determining whether it will be possible to sell the developed real estate for the price set within the investment project. The goal of this project is to develop general guidelines for the establishment of a mathematical model for the subjective emotional aspect of real estate valuation. The task of the project is to provide a detailed insight into the goal of the project, revealing its connection to investment project risk management. The essence of this project is the necessity of applying decision-making theory methods to the problems of the real estate market.