Category: opinion of value (1)

First it is important to understand the various types of value that one can define for a property. These fall into several categories:

1. Replacement value

2. Investment value

3. Market value

Each of these valuations serve a purpose. For example, one would use replacement value for insurance valuations. If you were purchasing property for investment or  assessing a real estate portfolio in comparison to other investments then the investment value would be most useful. If you were looking to sell a property or determine the fair market value of your property then a market value assessment would be the most appropriate evaluation to look to.

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