Selling Value

Itis an opinion of what a property would sell for in a competitive

market based on the features and benefits of that property (the
value), the overall real estate market, supply and demand, and
what other similar properties have sold for in the same condition.
For the seller it might be much more than what a buyer will pay
for the property or its true market price.
Some buyers might pay more for a property based on personal
value-added items
Value can create demand, which can influence price. But,
without the demand function, value alone cannot influence price.
It can avoid bidding situations by establishing the value
proposition early in the sales appointment with a discovery
question about buyers intentions

Depreciation
Value
The concept of depreciation is involved when dealing with
decreasing values of long term fixed assets over its useful life.
Depreciation is technically a method of allocation, not
valuation even though it determines the value placed on the
asset in the balance sheet.
Three key numbers of a long term fixed asset are original cost
of the asset, expected salvage value (residual value) and
estimated useful life
The portion of value being used up during each accounting
period is reported as depreciation expenses on the income
statement.
The remaining value of assets after depreciation will be
reported on balance sheet as book value:
=(the original cost of asset-the accumulated depreciation)

How to calculate the depreciation

value?
Similarly with inventory accounting, there are several ways to
oUnits ofdepreciation:
Productionmethod expresses the useful life of the asset in terms of the total
calculate

number of units to be produced by the asset. This is widely used in production industry when
depreciating assets like machines.

oStraight-linedepreciation method is used by most of the firms. Under this method, equal
amount of depreciation is allocated throughout the useful life of the asset.

Fair Value
It is used as a certainty of the market value of
an asset (or liability) for which a market price
cannot be determined.
It is the price that would be received to sell an
asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date
Used for assets whosecarrying valueis based
onmark-to-market valuations for assets carried
athistorical cost, the fair value of the asset is
not used

Sentimental value
Sentimental value is the value of an object that is
derived from personal or emotional association
rather than its material worth.
This term usually are practice by seller to
overpriced firms tend to sit on the market for a long
time, which negatively impacts statistics and gives
rise to misconceptions about the value of the firm
overpriced firms tend to sit on the market for a long
time, which negatively impacts statistics and gives
rise to misconceptions about the value of the firm

what could happen if you do sell your

home at sentimental value?
The buyer's lender will have your home
appraised and it comes in at market value
which is lower than the sentimental value you
agreed upon.
The Appraisal can point out needed repairs,
and additions prior to listing the home.
The Appraiser will measure your home
verifying it with city records this reduces your
liability and brings up any discrepancies which
could negatively impact your homes value.