When a contractor provides a price to build a home on a lot, this is considered what type of value?

The situation described pertains to a contractor providing a price to construct a home on a specific lot, which signifies an assessment based on measurable costs and standards in construction. This aligns with the concept of objective value, as it represents an estimation based on quantifiable criteria such as labor, materials, and overhead related to the construction process.

Objective value reflects the concrete, factual aspects of the project rather than personal opinions or feelings. It is derived from the specific costs associated with building and can be compared logically and systematically across various projects or situations.

In contrast, intrinsic value often pertains to the worth of an asset based on its inherent qualities or usefulness rather than market dynamics. Market value refers to the potential selling price of a property in the open market, influenced by factors like demand and supply. Subjective value is based on personal perceptions or emotional considerations, which do not play a role when a contractor proposes a price based purely on costs and quantifiable metrics. In this case, the contractor's estimate is grounded in an analytical approach to valuation, supporting the classification as objective value.