FAIR MARKET VALUE

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 fully aware of all relevant facts as of the effective date

of the appraisal report. 

 

IN PLACE / IN USE 

The most probable market price expressed in terms of cash equivalents an asset should bring in a competitive and open market under a reasonable time period

at an asset’s highest and best use. An asset’s value includes all transportation,

labor and material costs to place the asset into use. 

 

ORDERLY LIQUIDATION 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. 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 purchasers responsible for removal of assets at their own risk and expense. Any deletions or additions to the total assets appraised could change the psychological and/or monetary appeal necessary to gain the price indicated. 

 

FORCED LIQUIDATION VALUE (AUCTION) 

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 purchasers responsible for removal of assets at their own risk and expense. Any deletions or additions to the total assets appraised could change the psychological and/or monetary appeal necessary to gain the price indicated. 

 

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. 

 

NEW REPLACEMENT COST VALUE 

A professional opinion of the cost expressed in terms of currency, F.O.B. the manufacturer’s plant, to purchase a new item of like quality and specifications.

If such an item is unavailable, the appraiser uses his or her best judgment

in estimating a value as of the effective date of the