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

Section of the Internal Revenue Code that addresses tax-free exchanges of certain property. The general provisions for a tax-free exchange of real estate are that the properties must be ...

Land zoned for industrial use including manufacturing, factory office and warehouse space, research and development. ...

Concept used in valuing real property that conditions may be altered requiring a revised estimate of market value. These conditions include a shift in the demand/supply relationship, ...

Time period for which one expects to keep property such as a real estate investment. ...

Current value of a future sum or stream-annuity or mixed-of dollars discounted at a given rate. Present value determination is the inverse of future value calculation. ...

Rental due on the leased property is formulated as a percentage of sales volume. There is typically a minimum rental specified. An example is a retail store that pays rental based on its ...

Money set aside for a possible loss, such as from a fire. ...

Identifying marker of a company. Attesting to something such as the validity of an instrument used in real estate. ...

The transfer of a property deed to the original owner upon the satisfaction of a mortgage. A reconveyance is accomplished through a reconveyance deed. For example, upon making the final ...

Popular Real Estate Questions