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

Statement made verbally. It is better legally to have a written statement because verbal ones without witnesses may be denied. ...

Also called trust deed. A document that conveys title to a neutral third party during the period in which the mortgage loan is outstanding as collateral for a debt. ...

Same as term soil porosity: Extent to which soil has cavities or pores, thereby allowing water to pass through. ...

(1) foreclosed real estate or subject property in a bankrupt estate. (2) Income property which is making inadequate returns and has a negative capitalization rate. ...

Money payments to be delayed for a future date or extended over a period of time. ...

A void property is a real estate property that is immediately available for new owners or renters as it is vacated. Void real estate properties can be occupied at a short notice as no ...

Situation in which an owner of property sells the property to an investor and then leases the property back, usually for a 20- or 30- year term. ...

Giving of a promise or guarantee to the receiver to instill confidence. ...

Recurring obligation or assurance given. ...

Popular Real Estate Questions