Abstract
This chapter introduces the philosophical, conceptual and definitional aspects of the standard theory of (real estate market) value. The intention is twofold; to provide an overview of the key issues in both theory and practice, so as to set the appropriate background for the rest of the book, and to highlight contemporary problems and controversies. The chapter is arranged in seven sections according to the following thematic issues. Firstly, by way of context, basic concepts in real estate valuation are reviewed. The concept of market value is central to the functioning of real estate markets, and the market economies that depend upon them. The second thematic issue is an examination of the role of theory in the construction of meaning and explanation. It is the case that different theoretical perspectives engender different, often incommensurate, insights to identical problems. Where these are mutually exclusive, the superior theory is the one that provides better explanation and prediction of the phenomena of interest. The principle objective of this book is to challenge the standard theory of real estate market value, and to demonstrate that an alternative theoretical framework is better suited for the explanatory (and predictive) endeavour.
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Mooya, M.M. (2016). Standard Theory of Real Estate Market Value: Concepts and Problems. In: Real Estate Valuation Theory. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-49164-5_1
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DOI: https://doi.org/10.1007/978-3-662-49164-5_1
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