What does subjective value primarily refer to?

Subjective value refers to the worth or importance assigned to a property based on the personal perceptions, feelings, and attitudes of an individual, particularly the property's owner. This means that the owner may attach a value to the property that can differ significantly from its market value or the appraised value based on data and trends.

For instance, an owner may feel that their home has special value due to family memories associated with it or unique features that they have personally invested in, which may not be reflected in current market trends or comparable sale data. This personal attachment and interpretation of worth categorize the concept of subjective value.

In contrast, understanding how market trends, past sales data, and professional appraisals operate are based on more objective measures and data-driven analysis. These elements consider external factors rather than individual perceptions, showcasing how subjective value emphasizes personal interpretation over quantifiable metrics.