Mortgage

The concept of what adds ‘value’ to a home is subjective, at best

Understanding how 'value in use' can complicate appraisals

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The concept of what adds "value" to a home is, at best, subjective. One buyer may place a high value on a pool while another may see that as a reason to eliminate the home from consideration. Price and cost does not always equal value, and there can be any number of reasons why that's the case. The most common reasons reinforce a basic truth found in all real estate: This is not an exact science, and a number of variables -- especially the motivations and desires of buyers and sellers -- can be very difficult to account for. While data analysis provides a benchmark for value trends in an area, that data must be blended with the variables present in each situation. "Value in use" has a number of real estate-specific definitions. It also has a much simpler real-world residential application -- does the home suit a specific requirement of the present owner or buyer? There are a myriad of simple examples: a master on the main, an in-law suite, a single-story home or a handicapp...