Lecture

Real Estate Evaluation: Market Price Determination

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Description

This lecture covers the concepts of acceptable price and probable price in real estate evaluation. It explains the methods for determining these prices, such as individual price, reservation price, and market price. The lecture also discusses the challenges in estimating land prices and provides strategies for approaching this task, including imagining representative projects, using market data, and understanding the factors influencing land prices.

In MOOC

Soil and Real Estate Economics II

An economics course that presupposes no formal economic knowledge other than that developed in the first modules of the first part of this course, Land and Property Economics I. In this second course (Economics of Land and Real Estate II), we will cover..: The developer's countdown and its influence on land prices The calculations of property developers in general Market supply and demand and how they determine and vary prices Differentiating land by urban location

Official source

Related concepts (23)

Real-estate bubble

A real-estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real estate markets, and it typically follows a land boom. A land boom is a rapid increase in the market price of real property such as housing until they reach unsustainable levels and then declines. This period, during the run-up to the crash, is also known as froth.

Index of real estate articles

This aims to be a complete list of the articles on real estate.

Price discrimination

Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider in different market segments. Price discrimination is distinguished from product differentiation by the more substantial difference in production cost for the differently priced products involved in the latter strategy. Price differentiation essentially relies on the variation in the customers' willingness to pay and in the elasticity of their demand.

Price system

In economics, a price system is a system through which the valuations of any forms of property (tangible or intangible) are determined. All societies use price systems in the allocation and exchange of resources as a consequence of scarcity. Even in a barter system with no money, price systems are still utilized in the determination of exchange ratios (relative valuations) between the properties being exchanged.

Pricing

Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of product. Pricing is a fundamental aspect of product management and is one of the four Ps of the marketing mix, the other three aspects being product, promotion, and place.

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