Market Value as an Attempt to Objectivize the Behavior of Real Estate Market Participants
Market Value as an Attempt to Objectivize the Behavior of Real Estate Market Participants

Summary/Abstract: Purpose – to demonstrate that (1) value, particularly the value of real estate properties was, is and will remain a controversial category in economics, (2) to create a single universal definition of value unrelated to the object of exchange and the conditions under which it is exchanged, and (3) seeking value that objectivises the market is futile. Design/methodology/approach – the critical analysis of the pertinent literature and comparative analysis are used. Findings – market value does not reflect the conditions of the real estate market; it is rather a highly imperfect attempt to objectivise the behaviour of its participants. Research limitations – the market value of a real property is not directly measurable because it is based on prices that in the real estate market are an imperfect reflection of value. Research implications – society expects a socially acceptable measure of value facilitating real estate transactions, the calculation of fees and taxes, and other public and private activities. Today’s market value does not perform this function well, hence the need to redefine it.

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