What does Value in Use refer to?

Value in Use refers to the worth derived from the potential use of an asset, in this case, property. This concept considers the specific value that a property holds for a particular user or owner based on how they intend to utilize it. For example, a piece of land may have a higher value in use if it is intended for a commercial development compared to its value on the open market, where it may be considered vacant land with limited immediate potential.

This approach acknowledges that different users may assign different value to the same asset, depending on their specific needs or plans. Therefore, potential use—such as generating income from leasing or developing a property—plays a critical role in determining its overall worth from the perspective of the owner or user.

In contrast, the other options reflect different aspects of property valuation that do not align with the core concept of Value in Use. For instance, the market price is focused on what buyers are willing to pay in an open market scenario, whereas the profit from selling a property focuses solely on the financial return from a sale. Additionally, the expense of ownership pertains to the costs associated with maintaining the property rather than its inherent value based on use. Thus, the emphasis on potential use in determining value distinguishes the correct answer from the