Fair Market Value:
We define Fair Market Value as the price that goods in inventory and/or
equipment would bring if offered for sale in the open market. The seller
must be willing but not obligated to sell, and must allow time to find a
buyer who is willing but not obligated to buy. This figure is determined by
supply and demand as contrasted to a price set by company policy or “Book
Value”.
Reference Material:
Liquidation and Fair Market Values are determined and derived from,
but not limited to: retail values, wholesale values, resale market, market
capacity, internet investigations, periodicals and trade publications of
certain industries, and thirteen years of experience in the
Liquidation/Auction Industry.
Market
Value (Fair Market Value)
A professional opinion of the estimated most probable price expressed
in terms of cash in U.S. dollars to be realized for property in an exchange
between a willing buyer and a willing seller; with equity to both, neither
under any compulsion to buy or sell, and both parties fully aware of all
relevant facts as of the effective date of this appraisal report.
Market
Value - In Place
A professional opinion of the estimated most probable price expressed
in terms of cash in U.S. dollars to be realized for property in an exchange
between a willing buyer and a willing seller; with equity to both, neither
under any compulsion to buy or sell, and both parties fully aware of all
relevant facts as installed for intended utilization, as of the effective
date of this appraisal report.
Forced
Liquidation Value (Auction)
A professional opinion of the estimated most probable price expressed
in terms of cash in U.S. dollars 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.
Orderly
Liquidation Value
A professional opinion of the estimated most probable price expressed
in terms of cash in U.S. dollars 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.
New Replacement
Cost Value
A professional opinion of the estimated most probable price expressed
in terms of cash in U.S. dollars, F.O.B. the manufacturers plant, to
purchase a new item of like quality and specifications. If such an item is
unavailable, the appraiser has used his or her best judgment in estimating a
value as of the effective date of the appraisal.
Desktop Opinion
A professional opinion of the appropriately defined value, expressed
in terms of cash in U.S. dollars to be realized by the sale of equipment, in
which the option 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 an appraisal and should not
be used as an appraisal and is not recommended for use in credit decisions.
A desktop opinion is used to determine the need for an appraisal of the
scope of an appraisal.
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