Value for You and Me
Value is, of course, a subjective rather than an objective term. If you favour a detached house with garden somewhere in the Cornish countryside, a two-bedroom apartment in central London is of little value to you. Even small features like the size of windows are worth more or less to different people. The forces influencing the value of property include the property features and its location; social institutions in the area; wage levels; tax codes; and also building zones and environmental legislation. It does make a difference whether a flat is in Sheffield or Swindon; whether the next good school is two or ten miles away; and whether it is a 12th floor flat with a view onto St. Paul's or a basement flat in Hackney.
Price vs. Value
The appraisal methods discussed below are theoretical approaches to the question of value and help you estimate the worth of a property in accordance with your preferences and needs. In practice, however, it is the free market, i.e. the forces of supply and demand, which decide what amount of money a house changes hands for.
There may be a substantial gap between subjective valuations and the fluctuations of the free market. Thus, the subjective value of a property does not always correspond to its actual price. The forces of supply and demand cannot be scientifically predicted. Every property valuation can only ever be a guideline to what the house will eventually change hands for.
