Market Price And Market Value

See: Orders of the Ministry of Economic Development of Russia of July 20, 2007 N 256 “On approval of the federal standard of assessment” General notions of assessment, approaches to assessment and requirements for assessment (FSO N 1) “and N 255” On approval of the federal standard of assessment “Purpose estimates and types of value (FSO N 2) “// Russian newspaper. 2007

What should a bailiff follow when making an assessment?

Price and market value:

First of all, attention should be paid to the fact that the Law on Enforcement Proceedings uses such a term as “market price”. ——————————–

In economic theory, the terms “price” and “value” carry different meanings of meaning. Under the value is commonly understood the monetary value of the consumer utility of the property, and the price is the amount of money for which the economic good is sold and bought. Thus, price is a form of expression of the value of goods, manifested in the process of their exchange. In this formulation, there are two fundamental aspects. First, the direct connection of the price of a commodity with the value and usefulness that it possesses as an object of consumption is emphasized. Secondly, according to this interpretation, the price of a commodity is manifested as an economic entity only when it is exchanged for money or another commodity. Consequently, out of the market, without a sale, there is no need to talk about price, only the market is able to set the price.

From the above it follows that in the conditions of free sale of property on the open market (that is, not at regulated prices), the price at which this property is bought and sold

Maybe this is why the phrase “market prices” is not used in the Federal Law “On appraisal activity in the Russian Federation”, and its concept of price is already incorporated as market value. In addition, in the sense of the Federal Law “On appraisal activity in the Russian Federation”, the result of professional appraisal activity is the establishment of a market or a different value, but not a market price.

So, the subject property of a professional appraiser can be a specific property and its consumer utility, the purpose of an appraisal of a professional appraiser is to determine the value of the property (but not its price), and the price is set by the market.

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Hues, in accordance with paragraphs 4, 5 of the federal standard of valuation “General concepts of appraisal, approaches to appraisal and requirements for appraisal (FSO N 1)” when determining the price of an appraisal object, the monetary amount proposed, requested or paid for evaluation by participants of a perfect or planned transaction; in determining the value of the property being appraised, the estimated value of the property being evaluated is determined, determined at the valuation date in accordance with the selected cost type. Making a deal with the object of valuation is not a necessary condition for establishing its value.

It is interesting to pay attention to the fact that in the Law on Executive Procedure the term “cost” is used rather arbitrarily. For example, according to paragraph 4 of Art. 91 of the Law on Enforcement Proceedings, the bidding is declared failed if the person who won the bid did not pay the full value of within five days from the day of the bidding. In this case, we are talking about the price of a particular concluded transaction, at which the property must be paid, i.e. obviously, the payment should have been made at the price (and not the cost) of the contract concluded at the auction. Thus, the term “value” is used here as a sum of money offered and requested for the property by the parties to the transaction, i.e. in fact, we are talking about price, and not about cost as an estimated value.

At the same time in h. H. 8, 9, Art. 87 and Part 2 of Art. 89 of the Law on Enforcement Proceedings, the term “value” is used as a calculated value by which the property can be put up for auction or offered to buyers. The price of the property will be determined at the conclusion of the contract.

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