valuation
investment value
Investment value is the value of a property to a particular investor, based on that investor's individual goals, financing, tax situation, and required rate of return. Because it is specific to one person, it can be higher or lower than market value, which reflects what a typical buyer would pay. Investors often calculate it using projected income and cash flow.
- Exam tip
- Investment value is subjective and investor-specific; market value is objective and based on typical buyers. Exams often ask which value applies to one particular person.
- Example
- An investor who owns the adjoining building values a parking lot at $900,000 because of its use to her, while its market value is $750,000.
Related terms & state variants
Sources
Source verification pending. Confirm current requirements with your state regulator.
Last verified: 2026-10-23