Introduction To Real Estate - The Concept Of Value, Price, and Cost (Definition)

Definition of Value

1. economic concept refering to be the monetary relationship between goods and services available for purchase and those who buy and sell them.
2. value is not a fact , but an estimate of the likely price to be pad for goods and service at a given time in accordance with a particular definition of value.
3. the economic concept of value reflects a market's view of the benefits that accrue to one who owns the goods or receives the services as of date of valuation. 

DEFINITION OF PRICE

1. Amount asked, offered or paid for goods or service.
2. Sale price is an historical fact whether it is publicly disclosed or confidential.
3. Because of the financial capabilities, motivations, or special interests of a given buyer and / or seller, the price paid for goods may or may not have any relation to the value which may be ascribed to the goods or services by other.

DEFINITION OF COST

1. Price paid for goods/services or the amount required to create or produce the goods or service.
2. when that good or srevices has been completed, it is an historical fact.
3. the price paid for a good or srvice become its cost to the buyer.