Definition of "Value in use"

Tom Osbeck real estate agent

Written by

Tom Osbeckelite badge icon

Keller Williams NY Realty

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.

Comments for Value In Use

Jakes Jakes said:

5 differences between cost and value in real estate.

Feb 14, 2020  05:18:47

 
Real Estate Agent

Hey, 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  08:48:12
 
 
image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

An organized group of ethical behavior guidelines governing the day-to-day activities of a profession or organization. ...

Individual or business transferring a right or benefit to another person or business. ...

Founded in 1942 and located in Washington DC, the NAHB has 155,000 members with 824 local groups. Its membership consists of single, multifamily and commercial home builders. The NAHB ...

Frame surrounding a door or window to block adverse weather. It may be made of wood, metal, or other material. The frame may be fixed or moveable. ...

A public area, or plaza with a series of walkways permitting pedestrians easy access to shops, stores and restaurants. Modern malls are often enclosed enabling all weather access. Malls are ...

An acronym stating the real estate is the I.D.E.A.L. investment. Each if the five letters in IDEAL stands for an advantage to real estate as an investment. "I" stands for interest ...

Under a FHA-insured mortgage, both the property and the borrower must meet certain minimum standards. The borrower is charged an insurance fee of one-half percent on the unpaid balance and ...

Drain facility usually underground for waste and water disposal consisting on connected pipes. ...

Person or entity that has title or a right to something which is typically being held. Examples are real property, corporation, and personal property. Ownership of property may be held by ...

Popular Real Estate Questions