Property Valuation and Pricing (Part 2)
Emerald Publishing Limited
Published on 12. August 2020
104 pages
978-1-80071-293-5 (ISBN)
Description
There are three words in common parlance in the English language (and other languages) can commonly be used interchangeably. These are "e;price"e;, "e;value"e; and "e;worth"e;. Yet in the context of property (and economics), the words have distinct meanings.1. Price is the actual observable figure at which a property asset is sold in the open market. By definition, it is an historic fact and can only be observed once the sale has been made. 2. (Market) Value is an estimate of price where there is no actual sale. It is a proxy. An estimate of the figure that would be paid for the property asset in the open market were the property to be sold (after marketing) on the date of the valuation.3. Worth is a not a market based figure. It is a subjective assessment of the financial benefit of that asset to a particular owner or potential purchaser at a particular moment in time.
