V – Compendium of Real Estate Terms & Concepts

Void means null, having no legal or binding effect.

The term ‘value’ relates to the benefits brought by something in relation to the resources needed to achieve it. The concept of Value in VM is based on the relationship between satisfying needs and expectations and the resources required to achieve them.

Value sometimes expresses the inherent usefulness of an object and sometimes the power of purchasing other goods with it. The first is called value in use, the latter value in exchange. Value in use is the utility of an object in satisfying, directly or indirectly, the needs or desires of…

Value in exchange is the amount of commodities, commonly represented by money, for which a thing can be exchanged in an open market (Law Encyclopedia, 1998). Real Estate Dictionary defined it as the “worth of property based on exchanging it for goods and services”.

‘Value engineering’ (VE) is defined as a systematic and organised approach to provide the necessary functions in a project at the lowest cost. It refers to the value management activities that take place once the major value drivers for the project have been identified and agreed upon through Value Planning.

Value drivers are entities that increase the value of a product or service by improving the perception of the item and essentially providing a competitive advantage. Value drivers can come in many forms such as cutting-edge technology, brand recognition, or satisfied customers.

Value relates to the assessment of the benefits brought by something in relation to the resources needed to achieve it. The term ‘value added’ refers to the increase in value created by goods or services.

According to IVSC (2017), standard may be defined as a measure serving as a principle to which others conform or should conform and by which the accuracy or quality of the work of the professional performance of others is judged.

Valuation report is defined by Friedman and others (2005) in the Dictionary of Real Estate Terms as a written explanation of a property’s value, including the data and reasoning used to derive that value.

Valuation reports may be required for various reasons. Such requests can be varied, complex and numerous but each purpose could be easily identified, analysed and tackled expertly by an Estate Surveyor and Valuer who has been exposed and thoroughly schooled in the art of valuation. Requests for Valuation report could…