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HOME VALUES


Blog by Paul T Cody | January 20th, 2010


Home value sometimes referred to as "Value in Use", is best described as the probable price at which a home trades in a free, competitive, and open market and is synonymous with the market value.

market value:
Market value is the highest price in terms of money, that the property will bring to a willing seller if exposed for sale on the open market; allowing a reasonable time to find a willing buyer, buying with the knowledge of all the uses to which it is adapted and for which it can be legally used, and with neither buyer or seller acting under necessity, compulsion nor peculiar and special circumstances.

subjective value/objective:
Subjective value exists in the minds of the potential buyers and seller. Subjective value is the price that people are willing to pay for a property, irrespective of its cost, as differentiated from objective value in which the value is associated with the cost of production or cost of creating the property.