valuation
value in use
The value of a property to a specific owner or user for a particular purpose, rather than its value on the open market. It is subjective and often applies to special-purpose properties, such as a factory designed for one company's operations. Value in use can be higher or lower than market value.
- Exam tip
- Market value assumes typical buyers and an open market; value in use reflects one user's needs. Do not confuse it with investment value, which reflects a specific investor's return requirements.
- Example
- A custom-built bottling plant may be worth $5 million to its owner but much less on the open market because few buyers need that setup.
Related terms & state variants
Sources
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Last verified: 2026-10-23