Property Valuation
What is 'value in use' versus 'value in exchange' in Rhode Island appraisal?
AThey are the same concept
BValue in use is the value to a specific user for a specific purpose; value in exchange is the market value—what a property would sell for in the open market✓ Correct
CValue in use is higher than value in exchange
DValue in exchange applies only to commercial properties
Explanation
Value in use is the specific subjective value of a property to a particular user for a particular purpose (may be more or less than market value). Value in exchange (market value) is what a property would sell for between a willing buyer and seller in the open market.
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