What is defined as the monetary relationship between properties and those who buy, sell, or use those properties?

Value is defined as the monetary relationship between properties and those who buy, sell, or use those properties. It represents the worth of a property as perceived by market participants and reflects both subjective factors, such as individual buyer preferences, and objective factors, such as location and property condition.

This concept encompasses the idea of what a property is actually worth in terms of its potential to generate income or provide utility to its owner, rather than simply what it may have cost to build or what it sold for in a previous transaction. Value is an essential concept in appraisal as it provides insight into the market dynamics and helps inform buyers and sellers during real estate transactions.

While price refers to the actual amount of money exchanged in a transaction, and cost pertains to the expenditures involved in creating or acquiring a property, value connects the intrinsic qualities of the property to real-world economic activity. Market relates to the broader environment where these exchanges happen, including supply and demand factors that influence how value is appraised and perceived. Understanding value is crucial for accurate property assessment and effective decision-making in real estate.