Michael Fergusons Appraisals Frequently Asked Questions

Michael Fergusons Appraisals Frequently Asked Questions will help you understand the appraisal process, please read the appraisal value definitions below.

Appraisal Value Definitions

Forced Liquidation Value

Forced liquidation value is the value realized when assets are sold piecemeal, under duress at public auction. Forced liquidation value assumes that the buyer is responsible for all costs of removal and is purchasing the assets “as is, where is” with no warrantees or representations as to the condition of the assets being made by the seller. It is further assumed that the assets are properly advertised in a manner considered to be commercially reasonable.

Orderly Liquidation Value

Orderly liquidation is the value realized when assets are sold piecemeal, through negotiation, over a predetermined period of time (90 days to 180 days). Orderly liquidation value assumes that the buyer is responsible for all removal costs and is purchasing the assets “as is, where is’” with no warrantees or representations as to the condition of the assets being made by the seller. It is further assumed that the assets are properly advertised in a manner considered to be commercially reasonable. Buyer and seller further acknowledge that if an acceptable price cannot be negotiated within the time period specified the final option would be to offer the assets for sale at public auction (Forced Liquidation Value).

Fair Market Value

Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts.

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