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Archive for the ‘Appraisal Terms’ Category
May 6, 2010 Appraisers Seeking Resources to Determine the Value of Green Buildings
Real estate appraisers are struggling to determine the value of green building construction because the market is still in its infancy; there is lack of comparable property data and other market information. The current real estate market poses difficulties for any new construction appraisal, and the nascent green building construction market is exceedingly more difficult [...]
April 15, 2010 Understanding Depreciation for Machinery and Equipment
The term depreciation has different definitions depending on the audience you are speaking to. In accounting and finance, depreciation means the allocation of the cost of an asset over time. It is a way of allocating the purchase price of an asset across its useful life, which takes into account what is considered normal wear [...]
December 22, 2009 New USPAP Changes Effective January 1, 2010
As we discussed in a post in June, The Appraisal Foundation, a congressionally authorized non-profit organization that fosters professionalism among appraisers by setting qualifications and standards, announced that its Appraisal Standards Board (ASB) adopted revisions for the 2010-2011 edition of the Uniform Standards of Professional Appraisal Practice (USPAP). USPAP are the generally accepted performance and [...]
November 10, 2009 Auction Value: Fair Market Value
We’re continuing our discussion of the three different types of value a certified appraiser will provide before a company auctions off its assets. Read the other posts on this topic here. Fair market value (FMV) is the estimated potential value of equipment and machinery if it were sold in an open market. The following assumptions [...]
November 5, 2009 Auction Value: Forced Liquidation
In this post, we’re continuing our discussion of the three different types of value a certified appraiser will provide before a company auctions off its assets. Read the first two posts here and here. Today, we’ll tackle the topic of forced liquidation value. Forced liquidation value assumes that a seller is being forced to sell [...]
October 29, 2009 Know the Value of Your Machinery and Equipment Before an Auction
While the economy is showing signs of improvement, there are still a number of companies that are being forced to close their doors, which in many cases includes liquidating their equipment and machinery assets. Oftentimes, the most quick, efficient way to do this is through auction. When considering an auction, a company should first contact [...]
October 20, 2009 Income Approach
This is the third installment of our series on the various methods used by real estate appraisers to determine property value. Last week, we discussed the sales comparison approach and the cost approach. This post will focus on the income approach. The income approach generally is used to estimate the value of income-producing properties, including [...]
October 15, 2009 The Cost Approach
Today is our second installment in our series about the different methods used by real estate appraisers to determine property value. On Tuesday, we discussed the sales comparison approach. Today, we’ll cover the cost approach. To determine a property’s value using the cost approach, an appraiser would first estimate the value of the property if [...]
October 13, 2009 The Sales Comparison Approach
In real estate appraisal, there are three methods used to determine the value of a property: sales comparison approach, cost approach, and income approach. This blog will cover the sales comparison approach. The sales comparison approach is based on the principle of substitution, meaning a prospective buyer would not pay more for a property than [...]
September 22, 2009 Types of Appraisal Value
When it comes to determining the value of a property, there are a number of types of value that a real estate appraisal can determine. The most common types are listed below. Market value is the price at which an asset would trade in a competitive auction setting. Market value is usually synonymous with open [...]