Value Methodology in the Real Estate Practice

Abstract

Value Methodology (VM) is a management consultancy methodology that dates back 60 years. According to its definition, value is the ratio of function and resources. VM is a complex decision-support procedure that takes the consumer's need as a starting point and, in order to reach the technical-economic optimum, analyses and shapes the relationships between the functions and costs of a product in a constructively critical manner, as part of team work, in the course of a closely monitored process to create a more favorable value. VM is widely used in various industries, including the construction industry. The methodology is also successfully applied in production processes in Hungary. However, it is striking that the use of VM is not common in segments related to real estate consultancy. This article examines the possible role of VM in the real estate practice, using the method of requesting expert opinion in a training program. The survey clearly shows that both the whole of the methodology and certain of its elements could be included in the everyday practice of real estate experts.