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

When looking for the definition of a land surveyor, most definitions are quite simple and concise: a land surveyor is a person who measures the distance between two points, the angle ...

Interest rate on a mortgage that moves up or down based on some variable such as an index of lender's cost of funds, inflation rate, or prime rate. ...

An adversary hearing allows both parties to an issue to present their views. A public procedure performed by an administrative or legislative body to investigate certain matters and ...

Situation in which a business debts exceed the fair market value of its assets. ...

Person who leases rented premises from the initial lessee. The sublease is for a time not exceeding the original lease period. ...

Fibrous, fire-proofing material that was used in buildings and homes for insulation. ...

The definition of a storm ready community is any community across the country that demonstrates it has the means to prepare and educate the population for severe weather conditions. ...

(1) The interest rate charged on a construction loan. (2) The rate at which construction loan progress payments are made. See also bridge loan; bullet mortgage; development loan. ...

Legal abbreviation meaning with husband. ...

Popular Real Estate Questions