Value In Use
Definition of "Value in use"
Discounted value of net cash receipts to be obtained from a property. The present value calculation includes consideration of annual cash inflows plus the disposal value.
Popular Real Estate Terms
Provision in a lease agreement in which the lessee is given the right to buy the property at the end of lease term. In many cases, the option price is attractive to encourage acquisition. ...
Also known as “cap rate” or “income yield”, Capitalization Rate is a useful way to compute the rate of return on a real estate investment. It is commonly used in the ...
A proposal to buy property at a specified price. The seller of the property has the options of accepting the offer, rejecting it, or making a counteroffer. For example, John signs a listing ...
An individual's possessions at his residences, such as furniture. A listing of items and their costs is recommended to obtain proper insurance coverage and as support for insurance ...
The real and personal assets of a person at the date of death. The distribution of the assets to the heirs depends on the provision of the will. If no will exists, the distribution is based ...
model depicting on paper what a structure physically looks like. The dimensions are draw on a proportionate basis to the real thing. An example is a scale of an existing or proposed office ...
Small one story frame house or cottage. ...
Relationship between individuals or entities whereby rights given to one are returned in kind to the other. An example is where one person has the right to use facilities of another with ...
Unregistered stock or bond that pays the holder dividends (if stock) or interest (if bonds) as well as the selling price when sold (if stock) or principal (if bonds are held to maturity). ...
Comments for Value In Use
5 differences between cost and value in real estate.
Feb 14, 2020 05:18:47Hey, Jakes! Generally, cost refers to the amount of money you spend in order to produce a service or a product. Value is what a customer believes the product or service is worth. Cost is a numerical value, but value can’t be measured in numbers. Costs are the same for everyone while value varies from one individual to another. In real estate, for example, a properties costs refer to construction costs including land, labor, fees, and other costs. The value of a property is how much a seller or a buyer thinks the property is worth. If the buyer and the seller agree upon a price this creates what’s known as “market value”. Looking at the market value home buyers can get an idea of how much they are expected to pay for a property in the area. Market values also help home sellers to determine the value of their properties. We also have a related FAQ, that shows you how to calculate the fair market value for a property if you are interested.
Apr 13, 2020 08:48:12Have a question or comment?
We're here to help.