This means that: the buyers and sellers of real estate are typically market to behave in a rational manner and informed enough about the market, buyers and sellers are in competition in their own interests to maximize the benefits of buyers and sellers operate without collusion or fraud (if you have business or family ties – it is not market value); buyers and sellers operate without unlawful pressure, that is, real estate is sold for a typical period of time, calculate the market value does not include any special conditions or circumstances (eg, concessional financing, encumbrance contract for the sale or lease of concessions made by someone else). For more specific information, check out Jean-Pierre Garnier. In the practice of valuation for determining the market value of real estate used by different types of costs: initial cost; replacement cost, actual cost, residual value, assessed value, special value, liquidation value, the utilization value, investment value, the cost of rent open market, price-to-use, value for existing use. Initial cost – the cost of buildings and structures at the time of their commissioning. Used as a base an assessment to determine replacement, real, permanent, and the estimated value of buildings and structures. Replacement cost – the cost of the new buildings at current prices in force at the valuation date. Used to determining the real, permanent, evaluation, market value of buildings and structures.
The actual value – is replacement cost taking into account the cost value of physical depreciation. Used for determine the property tax on buildings and facilities, the estimated value of buildings and structures, the market value. The residual value of the magnitude and economic sense is the actual value. The main prerequisite for the use of residual value is that it is used to assess the buildings and structures are not sold on the market and therefore have no market demand. Estimated cost – it is really (Depreciated) value taking into account factors of market factors.
Used to calculate the value of buildings and structures according to their location. Special rates – is the market value taking into account additional elements or conditions that affect the cost because of the physical, functional or economic relations and financial reasons. Additional conditions affecting a particular owner or user, buyer's real estate market and not at all. Special rates are calculated at a particular time. Used in determining the market value for a particular item with the additional conditions it acquisition. Liquidation value – the value that can realistically be obtained from the sale of property within the time too short for proper marketing, in accordance with the definition of market value. Used as the market value during the limited duration of the estate. The utilization cost – the cost of the property excluding cost of land, regarded as the cost of collection constituent materials, building components and structures without additional repair and prepare it for sale. Used to calculate the market value of the destroyed facilities, cost recovery are higher the cost of demolition or uneconomical reconstruction of the destroyed buildings. Investment value – property value for a particular investor, claiming their investment requirements for capital expenditures. Used to calculate the market value of investment projects.