Appraisal Definitions

Appraisal Definitions

G-2000 offers high quality appraisals for a variety of industrial needs. To allow our clients to better understand what is being presented in an appraisal, and which type of appraisal to choose, here is a quick reference of some of the most common terms in an industrial appraisal.

All of our appraisals are conducted according to the guidelines established by the Uniform Standards of Professional Appraisal Practice (USPAP) and the American Society of Appraisers (ASA).

Source of Definitions: MTS Committee of the ASA

Common Appraisal Value Definitions

G-2000 offers many different valuations, depending on the purpose of the appraisal. Here are our most popular requests - speak to one of our appraisers to find out which will work best for you.

Fair Market Value: The estimated amount, expressed in terms of money, that may reasonably be expected for a 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 fully aware of all relevant facts as of a specific date. (In the valuation of personal property, this definition must be further defined on the basis of the function and purpose of the appraisal.)

Orderly Liquidation Value: The estimated gross amount, expressed in terms of money, that could be typically realized from a sale as of a specific date, given a reasonable period of time, 6 months to a year, to find a purchaser, with seller being compelled to sell on an as-is/where-is basis.

Forced Liquidation Value: The estimated gross amount, expressed in terms of money, that could be typically realized from a properly advertised and conducted public sale, with the seller being compelled to sell, as of a specific date, with a sense of immediacy on an as-is/where-is basis.

Additional Appraisal Value Definitions

Reproduction Cost New: The current cost of reproducing a new replica of a property with the same or similar materials.

Replacement Cost New: The current cost of a similar new property having the nearest equivalent utility as the property being appraised.

Fair Market Value in Continued Use: The estimated amount, expressed in terms of money, that may reasonably be expected for a 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 fully aware of all relevant facts, including installation, as of a specific date, and assuming that the business earnings support the value reported.

Fair Market Value - Installed: The estimated amount of an installed property, expressed in terms of money, that may reasonably be expected 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 fully aware of all relevant facts.

Fair Market Value - Removal: The estimated amount, expressed in terms of money, that may reasonably be expected for a property between a willing buyer and a willing seller with equity to both, neither under any compulsion to buy or sell and both fully aware of all relevant facts, as of a specific date, considering removal of the property to another location.

In-Place Value: The estimated gross amount, expressed in terms of money, which is projected to be obtainable from a failed facility, assuming that the entire facility would be sold intact, as of a specific date, with a limited time to complete the sale.

Salvage Value: The estimated amount, expressed in terms of money, that may be expected for the whole property or a component of the whole property that is retired from service for use elsewhere.

Scrap Value: The estimated amount, expressed in terms of money, that could be realized for the property, as of a specific date, if it were sold for its material content instead of a productive use.

Insurance Replacement Cost: The replacement cost new as of a specific date, as defined in the insurance policy less the cost new of the items specifically excluded in the policy, if any.

Insurance Value Depreciated: The insurance replacement cost as of a specific date, less accrued depreciation considered for insurance purpose.

Appraisal Products

A Summary Appraisal is G-2000, Inc.'s most requested documented valuation. We itemize asset component values and provide a detailed report including an extensive industry analysis, valuation definitions, and photos. We offer a wide range of documented options to meet the individual needs of the client.

A Desktop Appraisal is a preliminary investigation and an opinion of value, not recommended for credit decisions. The desktop analysis identifies and values assets without inspecting and listing them by relying on documents and other information provided by the client. With this service, you can make a collateral or loan structuring decision before investing additional time and effort.

A Walk-Thru report is a cost-effective service that gives the appraiser access to the assets and an opportunity to assess appearance and market appeal while verifying preliminary information.

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