Читать книгу Advanced Issues in Property Valuation - Hans Lind - Страница 9

The point of making a definition is to clarify a concept and therefore the words used in the definition must be clear in the sense that they are interpreted and applied in a similar way by different actors.¹ If a word is vague, there might be disagreement about whether it is correct to apply it in a specific situation. Additional explanations may sometimes be needed to make sure that the readers will apply the term in the same way and such clarifications can, for example, be found in IVSC (2019 , pp. 18–20).

A second criterion for a good definition is that it refers to things that are measurable, at least in principle. If valuers disagree, it should at least in a number of circumstances be possible to find data that indicate which estimate is closer to the truth. RICS (2019 , p. 2) states that ‘Consistency, objectivity and transparency are fundamental to building and sustaining public confidence and trust in valuation’. Objectivity in the context of a definition could be interpreted as that there exist data/evidence that substantiate at least a claim that the market value is closer to A than to B.

A definition should also be concise and not include terms that do not add any further content to the definition. This condition is sometimes referred to as Occam´s razor, i.e. unnecessary components in the definition should deleted.

The final condition for a good definition of market value is that the definition should lead to a concept that is relevant in the context where the term normally is used. A definition of market value should be such that market value ‐ so defined ‐ will be of interest for potential buyers and sellers thinking about a future transaction, or for measuring the wealth of a company in the balance sheet.