Читать книгу Advanced Issues in Property Valuation - Hans Lind - Страница 11

A special feature of the Appraisal Institute definition is that it refers to the price in ‘a competitive market’, while there is no such reference in the IVSC definition.

Here, we would side with the IVSC definition, primarily with reference to the criteria that a good definition should be relevant for actors on the market. Actual property markets differ in size and in the number of actors on the market and can be evaluated as more or less competitive. Independently of the level of competition, actors can be expected to be interested in the probable price if a property is to be sold or bought. The conclusion must then be that market value should be defined in such a way that it is applicable independently of how competitive the specific market is. It should be possible to discuss the market value of a unique property and of a property on a thin market, and this means that a reference to ‘a competitive market’ should not be included in the definition of market value.

Including such a condition would also create methodological problems. If market value is defined as the probable price on a competitive market and the current market is not so competitive, there is no observable evidence about the price on the competitive market. Observed prices could not be used directly to make inferences about the market value and that is a big problem as valuation should be based on observable evidence.