Define: Computed Value

Computed value refers to the calculated worth or monetary estimation of a particular asset, property, or investment. It is determined through various mathematical or statistical methods, taking into account relevant factors such as market conditions, historical data, and other relevant variables.

While computed value is a calculated estimation, market value represents the actual price at which a property or asset can be bought or sold in the open market. Computed value is often used as a tool to determine market value, but they are not the same.

The computed value of a property is typically determined by professional appraisers or valuation experts who have the necessary knowledge, expertise, and access to relevant data. They use various methods and techniques to arrive at a reasonable computed value.

Yes, computed value can be used for legal purposes, especially in cases involving property disputes, taxation, insurance claims, or financial transactions. It provides an objective assessment of the value of an asset, which can be crucial in legal proceedings.

When calculating computed value, several factors are taken into consideration, such as the location of the property, its size, condition, age, comparable sales in the area, market trends, and any unique characteristics or features that may affect its value.

Yes, the computed value can be challenged or disputed if there are valid grounds to believe that the calculation was flawed, inaccurate, or biassed. In such cases, it is advisable to consult with a legal professional who can guide you through the process of challenging the computed value.

Yes, computed value can be used for insurance claims, especially in cases where the value of a damaged or lost property needs to be determined. Insurance companies often rely on computed value assessments to calculate the appropriate compensation for policyholders.

Yes, computed value can be used for tax assessments, particularly in property tax calculations. Local tax authorities may rely on computed value assessments to determine the taxable value of a property and calculate the corresponding tax liability.

Yes, computed value can change over time due to various factors such as market fluctuations, changes in economic conditions, renovations or improvements made to the property, or other external influences. It is important to regularly reassess the computed value to ensure its accuracy and relevance.