The interpretative confusion between "value" and "price" still haunts not only the general public, but also some experts. The price is objective: it is the achievement of a commercial agreement on a numerical basis. Value has a substantially subjective connotation, linked to the personal situation of the various market players when they judge a given asset.
Economic prices are those generated by free trade on the market. Nominal prices are those requested but not accepted by the market.
The exchange value and the price coincide for each successful transaction. The price is always unique: it is between the minimum exchange value for the seller and the maximum exchange value for the buyer.
Exchange values usually vary over time. It is thus the expert's task to try to construct historical series of data for the past, and to propose forecasts for the future.
To estimate means to predict. It is therefore necessary to know very well the factors that influence the prices and real estate values.
An appraiser does not estimate the value of a property, but a probable future market price. Instead, the term value should be used when addressing topics such as tax value, insured value, book value, residual value, historical value and so on.
A value is conditioned by factors such as utility (connected to the more or less primary need of an asset), the perception of its rarity on the market, the purchasing power of buyers, the financing risk for lenders, etc.
Then there are objective elements that condition the value, which can be classified into factors external to the asset to be appraised (social, economic, fiscal/union/political, physical) and internal factors (ie inherent to the asset itself).
The appraiser carries out a complex profession, which will become increasingly complicated in the future: technical, legal and economic/financial culture will be increasingly necessary. And customers, clients and appraisal users will become increasingly demanding.
It will be the market that spontaneously expels those who still continue to draw up expert reports by photocopying pages of old estimation books.