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
What Is a Real Estate Bubble? One definition for a real estate bubble is the fast increase in prices, usually driven by investors and speculators in major urban areas. Properties are ...
Sponsor sells interest to real estate investors in one property only. The total amount received from the equity investors is used by the sponsor to buy the property for the partnership. ...
A capitalized expenditure usually extending the useful life of a building or improving it in some manner over and above the original condition. In contrast, a maintenance or repair expense ...
Party that receives part or all of a construction job to do from the general contractor. ...
Document that must accompany a new issue of securities for a real estate company or partnership. It includes the same information in the registration statement, such as a list of directors ...
Action that is beyond that allowed legally. Examples are charging illegally high interest rate on mortgages and real estate exceeding the amount permissible by legal statute, and a real ...
Home inspector is the name the real estate industry calls the professional responsible for the close and thorough examination of a property. The home inspector usually is called upon ...
Individual with legal privileges and obligations. The legal term is sometimes used for a corporation. ...
Single mortgage or other encumbrance that covers more than one piece of real estate. ...
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.