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What are the types of value?

by Team Goseeko

Types of Value:

There are different types of value as follows:

  1. Scrap value
  2. Salvage value
  3. Market value
  4. Book value
  5. Assessed value
  6. Distress value
  7. Replacement value
  8. Potential value
  9. Monopoly value

Types of value

1. Scrap value:

Scrap value is the value of dismantled materials of property at the end of its utility period and absolutely useless except for scale as scrap , Scrap value is usually considered as 10% of cost of construction and Scrap value is also known as junk value.

2. Salvage value:

Firstly it is the value of built up property which one estimates at the end of its useful life without dismantling .

This is generally accountant by deducting depreciation from its new cost.

3. Market value:

Market value of property is value when one can sell it in the open market at particular time

In an open market the property is offered for sale by advertising in daily newspapers and all necessary steps are adopted so that every person who desires to purchase the same can make an offer.

4. Book value:

Firstly book value is the value of property which one shows in the account book in the particular year.

5. Assessed value:

Assessed value in the value of property  recorded in register of municipality in order to find amount of municipal taxes to be collected from owner of the property

6. Distress value:

Distress property is the one when one sells property at a lower price than the market value at that time.

7. Replacement value:

Therefore it is the present value of property or [portion thereof if these have to be replaced at current market rates.

8. Potential value:

When property is capable of fetching more return due to its alternatives use or by advantageous planning, by provide some development works and such inherent value of property is called potential value.

9. Monopoly:

Lastly in land is scarce little remaining for scale or certain properties pass special advantageous with respect to adjoining property due to its location.

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