This means that buyers and sellers of real estate market are typically behave rationally and fairly informed 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, the market value calculation does not include any special conditions or circumstances (for example, concessional financing, encumbrance contracts for the sale or lease of concessions made by someone else). In the practice of valuation to determine the market value of real estate used by different types of costs: initial cost; replacement cost; the actual cost, residual value, assessed value, special value, liquidation value, of the utilization cost, investment cost, the cost of rent open market value in use, the cost under the 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 new buildings at current prices in force at the valuation date. Used for 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. Main prerequisite for the use of residual value is that it is used to assess buildings and structures are not sold on the market and therefore have no market demand. Estimated cost – it is really (Residual) value of the coefficients of the market factor. Used to calculate the value of buildings and structures according to their location. Special price – it's 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, property buyer, not the market in general. Special value is calculated at a particular time.
Used in determining the market value for a particular object with the additional conditions it acquisition. The residual 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 a market value during the limited life of the property. Scrappage costs – the cost of ownership without the cost of land, regarded as the cost of collection component materials, building components and structures without further repair and preparation for sale. Used to calculate the market value of the destroyed facilities, cost recovery are higher the cost of demolition or reconstruction of the destroyed uneconomical structure. Investment value – property value for a particular investor, has its own investment requirements for capital expenditures. Used to calculate the market value of investment projects.