USEFUL RESOURCES

EXAMPLES OF REASONS BUSINESSES NEED EQUIPMENT APPRAISAL SERVICES:

APPRAISAL COST/VALUE DEFINITIONS

Reproduction Cost New

The current cost of producing a new replica of a property with the same, or closely similar materials, as of a specific date

Replacement Cost New

The current cost of a similar new property having the nearest equivalent utility as the property being appraised, as of a specific date.

Fair Market Value

The estimated amount, expressed in terms of money, that may be reasonably 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.

Fair Market Value in Continued Use

The estimated amount, expressed in terms of money, that may be reasonably 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 and assuming that the business earnings support the value reported. This amount includes all normal direct and indirect costs, such as installation and other assemblage costs to make the property fully operational.

Fair Market Value In Place

The estimated amount, expressed in terms of money, that may be reasonably expected for an installed property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or to sell and both fully aware of all relevant facts, including installation as of a specific date. This amount includes all normal direct and indirect costs, such as installation and other assemblage costs necessary to make the property fully operational.

Fair Market Value Removed

The estimated amount, expressed in terms of money, that may be reasonably expected for an item of 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, considering removal of the property to another location, as of a specific date.

Orderly liquidation Value

The estimated gross amount, expressed in terms of money, that could be typically realized from a liquidation sale, given a reasonable period of time to find a purchaser (or purchasers), with the seller being compelled to sell on an as-is, where-is basis, as of a specific date. Prices realized at orderly liquidation sales differ from the dealer or person-to-person transactions that would yield (usually) higher prices.

Forced Liquidation Value

The estimated gross amount, expressed in terms of money, that could typically be realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as-is, where-is basis, as of a specific date. Prices realized at auction differ from the dealer or person-to-person transactions that would yield (usually) higher prices.

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 possible use elsewhere, as of a specific date.

Scrap Value

Equipment which can no longer be maintained, and which cannot be utilized to any practical degree regardless of the extent of the repairs or modifications to which it may be subjected. This condition applies to items of equipment which have been used for 100% of their useful life or which are 100% technologically or functionally obsolete and are no longer serviceable and have no value other than for their material content.

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