The real estate market value and investment value

The market value is defined as the most probable selling price assuming “normal” sale conditions as the value the typical participant would place on a property. It can be viewed concept of market value rests upon the interesting forces of supply and demand. Specific property right should sell the presence of willing buyers and sellers freely bidding in completion with one another on the fair condition by buyer and seller are motivated, well advised and acting what they consider their interest, a reasonable time is allowed for exposure in the open market, Payment is made of a cash or financing comparable and the market value should be clearly revealed in the appraisal report.
In the appraiser preparing, inspect the subject site and improvement of interior and exterior and gather the analyzed data and applied the sales comparison approach for indicating the market value for the subject property. For the best determine the market value and investment value of the subject property, The three method-sales comparison approach, cost approach and income approach will be proceed.
The goal of investment is to get decent operating income as well as property value appreciation. Considering low initial equity need, individual investor or partners are acceptable. Market value of a property is property selling price under competitive market under normal condition and with value for a typical investor. Investment value is the best worth property for investor and the maximum amount he is willing to pay based on the market and preference. However, seller’s investment value is the minimum he or she would be willing to accept. They each have differences because different investors have different requirements of return, tax and different financing situation.With the positive net present value of the after-tax cash flows and the desirable internal rate of return, the investment opportunity factors are subject property is in good condition, stabilized cash flows as low risk investment, and it is located in an area with high development demand.