In real estate, what does the term "investment value" refer to?

Investment value specifically refers to the worth of a property based on an individual's or entity's specific circumstances and analysis, which includes factors like expected income, market trends, and other financial metrics used in investment analysis. This value is subjective and can vary significantly from one investor to another, depending on their goals, expectations, and the potential income they anticipate generating from the property.

In real estate, an investor may assess a property's revenue potential, expenses, financing costs, and available tax benefits, all of which contribute to the investment value. This is crucial for investors as it helps determine the feasibility and profitability of acquiring a particular property based on their unique investment criteria.

The other options relate to different aspects of property evaluation but do not accurately define the concept of investment value. The maximum price a buyer will pay focuses on individual buyer's willingness rather than an analytical approach. The sale price of a comparable property pertains to market transactions rather than personal investment criteria. Historical value emphasizes past worth rather than present or future potential earnings.