Present Value Blog » appraisal value http://www.presentvaluellc.com/valuationexperts Equipment Appraisals, Real Estate Appraisals & Business Valuations Thu, 02 Sep 2010 22:15:21 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 Types of Appraisal Value http://www.presentvaluellc.com/valuationexperts/2009/09/22/types-of-appraisal-value/ http://www.presentvaluellc.com/valuationexperts/2009/09/22/types-of-appraisal-value/#comments Tue, 22 Sep 2009 18:31:32 +0000 admin http://www.presentvaluellc.com/valuationexperts/?p=283 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 market value or fair value.
  • Value-in-use is the net present value (NPV) of a cash flow that an asset generates for an owner under a specific use. Value-in-use is usually below the market value of a property.
  • Investment value is the value to one particular investor, and is usually higher than the market value of a property.
  • Insurable value is the value of real property as indicated by an insurance policy. Generally it does not include the site value.
  • Liquidation value may be analyzed as either a forced liquidation or an orderly liquidation and is a commonly sought standard of value in bankruptcy proceedings. It assumes a seller who is compelled to sell after a period of time that is less than the normal market time frame.

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