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Glossary & Definition of Values
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Fair Market Value - Removal |
A professional opinion of the
estimated most probable price expressed in terms of currency to be realized for
property in an exchange between a willing buyer and a willing seller, with
equity to both, neither being under any compulsion to buy or sell, and both
parties aware of all relevant facts as of the effective date of the appraisal
report. This assumes the buyer will remove the property.
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| Market Value - In Place |
A professional opinion of the
estimated most probable price expressed in terms of currency to be realized for
property in an exchange between a willing buyer and a willing seller, with
equity to both, neither being under any compulsion to buy or sell, and both
parties aware of all relevant facts, as installed for intended utilization, as
of the effective date of the appraisal report.
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Forced Liquidation Value |
A professional opinion of the
estimated most probable price expressed in terms of currency which could
typically be realized at a properly advertised and conducted public auction
sale, held under forced sale conditions and under present day economic trends,
as of the effective date of the appraisal report. Conclusions taken into
consideration are physical location, difficulty of removal, physical condition,
adaptability, specialization, marketability, overall appearance and
psychological appeal. Further, the ability of the asset group to draw sufficient
prospective buyers to insure competitive offers is considered. All assets are to
be sold on a piecemeal basis 'as is' with the purchasers responsible for the
removal of assets at their own risk and expense. Any deletions or additions to
the assets appraised could change the psychological and/or monetary appeal
necessary to gain the price indicated.
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Orderly Liquidation Value (Auction Value) |
A professional opinion of the
estimated most probable price expressed in terms of currency which the subject
equipment could typically realize at a privately negotiated sale, properly
advertised and professionally managed, by a seller obligated to sell over an
extended period of time, usually within six to twelve months, as of the
effective date of the appraisal report. Further, the ability of the asset group
to draw sufficient prospective buyers to insure competitive offers is
considered. All assets are to be sold on a piecemeal basis 'as is' with the
purchasers responsible for the removal of assets at their own risk and expense.
Any deletions or additions to the assets appraised could change the
psychological and/or monetary appeal necessary to gain the value indicated.
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Insurable Cash Value |
A professional opinion
estimated in terms of money that would be required to duplicate, as nearly as
possible, the equipment described in the appraisal report. This value includes
machine cost, freight, rigging, installation, electrical and pneumatic
connections, foundation costs and leveling of the equipment. In cases where
individual machines cannot be replaced model for model, a machine of equal
capacity and similar age would be substituted. This value makes no provisions
for travel costs, loss of business costs, and applicable taxes.
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Residual Value |
The projected value expected
by a lessor at the termination of a "fair market value" lease. This value
usually falls somewhere between the fair market value and its orderly
liquidation value and is based upon the lessor's calculated expectations of the
willingness of the lessee to buy the equipment at its fair market value. In the
event the lessee elects to return the equipment, the lessor is likely to dispose
of the equipment at its orderly liquidation value.
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Desktop Opinion |
A professional opinion of the appropriately defined value, expressed in terms of currency to be realized by the sale of assets, in which the opinion is generated from lists and/or other informational materials supplied to the appraiser and evaluated without the benefit of an actual on site inspection. This opinion is not recommended for use in credit decisions. A desktop opinion should be used to determine the need for an appraisal or the scope of an appraisal.
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Tel:
920-739-9530 * Cell: 920-202-2776 *
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