A relationship between the value of the whole and separate parts

Abstract

Abstract The aim of this article is to analyse the relationship between the open market values of real property when the real property is sold in various ways. What is considered is the sale of real property as a whole and by its separate parts. Our conceptions are reflected on a specific real property model. The open market value of the real property is set by a comparative and yield-basis method. The difference in established open market values of the real property when selling the real property in various ways equals to 32%. Individual internal and external value-setting factors that make the difference are indicated and discussed. The discussed value-setting factors are mostly as follows: imposing administrative and organizational duties, the nature of the model real property, a position of the real property market, the economic law of declining demand, a risk of rental losses and the situation in the construction industry relating to the new buildings. A further research might be focused on identifying other value-setting factors related to real property.