The market value of the property according to international standards:
According to international evaluation standards. The market value is the amount for which the asset can be sold on the valuation date. in a free and open market. in fair and impartial conditions.
In other words, market value is the value that a ready and willing buyer is willing to pay for the asset on the valuation date. in fair and impartial conditions.
Market capitalization depends on a variety of factors. Including:
- Characteristics of the asset. such as location, size, and usage.
- market conditions. such as supply, demand, and current prices.
- Economic factors. such as interest rates and inflation.
The market value of a property is determined using a variety of methods. Including:
- Market style. which compares the property to similar properties that have recently sold.
- Income method. which calculates the present value of the expected future earnings from the property.
- Cost method. which estimates the expected cost of reproducing or replacing the asset.
The appropriate method of real estate valuation is chosen based on various factors. including the type of property and the purpose of the assessment.
Here are some examples of the market value of real estate according to international standards:
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If there are two similar houses in the same neighborhood. One of them was recently sold for $2 million. The market value of the other house can be estimated at $2 million.
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If it is a store with an annual income of $1 million. He expects to continue to generate this income in the future. The market value of the store can be estimated at $10 million.
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If the cost of building a new factory is $100 million. The market value of the plant can be estimated at $100 million.
