Let us see an example of this difference in real estate. A sitting tenant of an industrial gala paying rent of Rs. His valuer reported market value of same gala at Rs. This is the classic example of the property having three different values in the market at practically same period of time but under different circumstances. Several persons believe that cost and value have same meaning but in reality, cost, price and value each have different meaning.
Price includes cost of material, cost of labour and profit or loss on sale.
Hence price is not same as cost. Some of the following examples will make this differences crystal. A Doctor purchased land for Rs. 15 Lacs and constructed house for Rs. 35 lacs. Immediately on completion and occupation of the building, doctors valuer valued the property at Rs.