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American Society of Appraisers - Definitions
Reproduction Cost, New - the current cost of duplicating an identical item new . It is the current cost of reproducing an exact replica.
Replacement Cost, New - the current cost of a similar new item having the nearest equivalent utility as the property being appraised.
Fair Market Value - the amount expressed in terms of money , as of a certain date, that may reasonably be expected to 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 -In Place the Fair Market Value of an item , including installation and the contribution of the item to the operating facility . This value presupposes the continued utilization of the item in conjunction with all other installed items .
Fair Market Value- For Removal - the amount expressed in terms of money , as of a certain date, that may reasonably be expected to 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, assuming removal of the property to another location.
Orderly Liquidation Value - the amount of gross proceeds which could be expected from the sale of the appraised assets , held under orderly sale conditions , given a reasonable period of time in which to find a purchaser(s) considering a completed sale of all assets "as is,and where is, " with the buyer assuming all costs of removal , with all sales made free and clear of all liens ,and encumbrances, with the seller acting under compulsion.
Liquidation Value In Place - the estimated amount of money which is projected to be obtainable, considering the present marketplace , assuming that the entire facility would be sold intact ("bulk sale") , along with all related equipment necessary to make it viable. It further considers that the Fair Market Value , as normally defined , could not be obtained due to restrictions of time and probable conditions of the business under forced sale conditions.
Forced Liquidation Value - the estimated gross dollar amount which could be typically realized from a properly advertised and conducted public auction / liquidation sale , held under forced sale conditions ,with a sense of immediacy , and under present day economic conditions.
Salvage Value - the 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 the service for use elsewhere.
Scrap Value - defined as the amount expressed in terms of money that could be realized for the property if it were sold for its material content, not for a productive use.
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