• Appraisal and Valuation

Appraisal and valuation services are used to determine the value of an item, usually a piece of property. A real estate appraisal is done by a licensed or certified expert. Some of the most common types and definitions of value which are sought by a real estate appraisal are market value, value in use, investment value, insurance value, and liquidation value. The market value is the estimated amount for which the property can exchange on the date of the valuation between a buyer and seller in a transaction.

Real Estate Appraisal

The value in use is the net present value of the cash flow which an asset can generate for an owner under a specific use. This is usually below the property’s market value. The investment value is the property’s value to a specific investor and it is generally higher than the market value. The insurable value is the value of the property covered by an insurance policy and does not usually include the site’s value. Lastly, liquidation value is the most commonly sought standard during bankruptcy proceedings.