Basis of value of price appraisal

I. Market value as a basis for price appraisal
    1. Definition of market value
    According to Decision No. 24/2005 / QD-BTC dated 18/04/2005 of the Ministry of Finance promulgating Standard No. 01 (SDGG 01) defining market value as a basis for asset price appraisal as follows: Price market value of an asset is the estimated price that will be traded in the market at the time of valuation and is determined between one party who is willing to buy and one that is willing to sell; in an objective and independent purchase and sale, under normal commercial conditions.
    - "The market value of an asset is the most likely price to be purchased on the market ..." is the estimated amount of assets that can be bought, sold on the market under normal trade conditions. normal trade that the sale satisfies the market conditions at the time of valuation.
    - "Time of price appraisal ..." is the specific day, month and year when conducting price appraisal, which is associated with factors of supply, demand, tastes and purchasing power in the market when conducting the appraisal. property prices.
    - "Between the one side is a buyer willing to buy ..." is a person who is able to pay and needs to buy assets.
    - "And one is the seller who is willing to sell ..." is the seller who is in possession of the property (except land), has the right to use the land wishing to sell the property at the best possible price. on the market.
    - "Normal trade conditions" mean buying and selling conducted when the factors of supply, demand, price and purchasing power do not occur mutations due to the impact of natural disasters or epidemics; the economy does not suffer from recession or overheating, etc.; Information on supply, demand and prices of assets is publicly displayed in the market.

2. Assumptions in the concept of market value
    - Trading data on the market under normal trade conditions
    - Market value represents the price level formed in the public and competitive market.
    The concept of market value reflects common perceptions and activities in the market and is the basis for asset valuation in a market economy.
    The concept of market value does not depend on a particular purchase or sale at the time of valuation. The market value represents the price agreed by the buyer and seller, the agreement will conduct the purchase and sale, after a time of survey and consideration of opportunities.
    Diversity, constant change is the nature of the market, so the appraisers must consider whether the marketable income figures meet the standards of market value or not.
    In particular situations, sometimes the market value can be a negative number. This is the case for some special properties, old houses whose demolition costs are greater than the value of the land, those that pollute the environment.