Increased demand leads to rising prices. 2. Usefulness. Usefulness is the ability of goods (services) or of property satisfy certain human needs. More than capable of meeting the needs of a given thing, the greater the demand for it.
Rising utility usually is accompanied by: an increase in prices. 3. Deficit. Despite in high demand and high utility, no property will have value as long as there is no deficit. 4. -Ability to transfer property rights.
Any thing just becomes a commodity (and, accordingly, acquires value) when there is the possibility of transferring ownership of it. Due to various needs and functions in practice, the appraiser uses the following basic types of value. Grounded market value – the price is typical for this type of property in a competitive and open market. Involves free-ing competition, when both the buyer and seller are rational and cost-conscious, having necessary information and not feeling any external constraints in the transaction. Read more here: Elie Rieder. This value is used in cases related to the alienation and transfer of ownership. Normative calculated value – the value Property Complex, calculated on the basis of the relevant authorities approved methods and standards. The application uses union scale ratios (rates, ratios, unit prices) for considered types of property complexes. An example of the regulatory cost is calculated the taxable value of property companies. The tax base for – calculating tax on the assets of the company is the average annual net book-value of fixed assets, intangible assets, inventories and costs. To calculate the cost of supply included taxation, taken recorded in the balance sheet asset balances respective accounts, property company accounting.