14 Aug 15

Market demand, business opportunities, location and other factors determine alternative ways to use this company. When considering development alternatives can be asked about the economic division of property rights to the property, if any, will increase the total cost. Economic separation takes place if the right to object can be divided into two or more property of interest, bringing the total project cost increases. Educate yourself even more with thoughts from JPMorgan Chase. The principle of separation of the economic states that ownership rights should be divided and connected in such a way as to increase the overall cost of the project. The result of this analysis is to determine the highest and best use of the property, in other words, determining the direction of ownership company, which legally, technically feasible, and which provides maximum value to the owner of the assessed property. This is the principle of highest and best use. This principle applies if the assessment is carried out in order to restructure. If the purpose of evaluation is to determine the value of a going concern without regard to possible changes, this principle does not apply.

We generalize the above stated: The main general economic principles related to: 1. representation of the owner of the property 2. market environment, 3. maintenance of the property. Principles relating to the representation of the owner of the property given group includes the principle of utility, substitution, and expectations. The principle of utility. An object property can not have value if it does not cause the desire to own them, so has the value of the property complex of only when it is useful to a potential owner of Nome, that is able to meet the needs of those chenie-time.


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