Market Value of a given property is widely accepted as the highest price a property will sell for in a competitive and open market with both buyer and seller acting prudently and knowledgeably with neither party being under any pressure to act.

Investment Value, on the other hand, is the value a particular investor determines a property is worth based on his/her specific investment criteria.  The difference in terms is one of perspective; investment value is unique to the individual investor; market value is more general and assumes the "typical" or "average" investor.

Investors use a veriety of methods to calculate investment value depending on their specific investment objectives (and their personal preferences).

Some of the commonly, and not so commonly, used valuation methods are:  Gross Rent Multiplier,  Capitalization Rate, Cash on Cash, Internal Rate of Return, Net Present Value, and Capital Accumulation.  For descriptions of each of these, click on the appropriate links on the home page.