Concept of Value

The word “Value” does not have a specific and restricted meaning as it may mean different thing to different people. Value by its ordinary definition particularly in basic economics is the utility of satisfaction which goods and services offer.

The oxford advanced learner English dictionary defined “Value” as the worth of something in terms of money or other goods for which it can be exchanged for something being useful or important.

Hornby (1989) defined “Value” as the worth of some thing in terms of money or other goods for which it can be exchanged or by being useful or important.

The Oxford Advanced Learners English Dictionary defined “value” as the worth of something in terms of money or other goods for which it can be exchanged for something being useful or important. But the estate surveyor and valuer is concerned with the economic concept of values. He tries as much as possible to translate value into monetary terms.

He looks at it as “the worth of an investment in landed property” Real Estate appraisal defined value in the manner “value in intrinsic, it is created in the mind of the people who constitute market”.

There are many classes of value as there many classes of wants. Some kinds of values in common usages in every business are as follows: Aesthetic values, purchase values, face values, time values, probate values, mortgage values, open market values, capital value, retable value, insurance values, exchange values, book values, to the owner for the purpose of this study rental values and market values.

a. Rental Value

This is the worth on lease of a property on a periodic basis. When this sum is equivalent to what any similar property will attract, such rent is called open market rent. Rental values therefore is the worth of property on periodic occupation basis Olusegun (2003).

The process of determining capital value of property. This is by comparative method taking into consideration the condition and terms of the lease being assessed. Such rental values can be described as “Open market value”. Therefore, open market values of a property is the rent such a property would attract or similar when offered in the market on the usual tenancy or lease terms and conditions characterizing the marketing of such class and type of property.

b. Market Value

This is the worth of an interest in property which reasonable buyers and sellers would agree to when referred to market with existence of condition for competitive market application. Market value can also be defined as “the highest price in terms of money which a property should bring a competitive or open market under all conditions requisite to a fair sale. The buyer and seller each acting prudently knowledgeable and assuming the price is not affected by undue stimulus.