Industry Standard Terms & Definitions

Fair Market Value – Fair Market Value is the professional opinion of the most probable price of the market value of a property expressed in terms of currency.

Fair Market Value in Continued Use – Fair Market Value in Continued Use is the professional opinion of the most probable price of the market value for a property expressed in terms of currency.

Fair Market Value in Place – Fair Market Value In Place is the professional opinion of the most probable price of the market value of assets expressed in terms of currency.

Forced Liquidation Value – Forced Liquidation Value is a professionally estimated worth of the most probable price recognized by a forceful liquidation.

Orderly Liquidation Value – Orderly Liquidation Value is a professional opinion of the estimated price, expressed in currency, that an asset or company could quickly be sold for, should the company go out of business.

Orderly Liquidated Value in Place – Orderly Liquidated Value in Place is the professional opinion of the estimated gross amount of assets in place expressed in terms of currency that a knowledgeable buyer would be willing to pay a knowledgeable seller.

Replacement Cost New – Replacement Cost New is a professional opinion of the cost, expressed in terms of currency, in offering substitutes similar to the assets that had been inspected.

Replacement Cost Used – A professional opinion of the cost in terms of currency in providing substitutes similar to the assets inspected having comparable utility and exhibiting similar design and technology.

Sound Value – The installed replacement cost new of an asset, less physical, functional, and external factors of depreciation.

Valuation – Valuation is the method of appraising the prospective market value of a financial asset(s) for an auction.