Property Valuation
What is the difference between value in use and value in exchange in Nevada real estate?
AThey are the same thing; both refer to market value
BValue in use is the value to a specific user for a specific purpose; value in exchange (market value) is what a property would sell for in the open market✓ Correct
CValue in exchange applies only to commercial property
DValue in use is always higher than market value
Explanation
Value in use is the value of a property to a specific user for their specific purpose (e.g., a church building has high value in use to a congregation but possibly lower market value). Value in exchange (market value) is the price the property would command in a competitive and open market.
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