Valuation Definitions

Reproduction Cost View:
Is the current cost of duplicating an identical item new. It is the current cost of reproducing an exact replica.

Replacement Cost View:
Is the current cost of a similar new item having the nearest equivalent utility as the property being appraised.

Fair Market Value:
Is 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 in Place (IN use):
Is the fair market value of an item, including installation and contribution of the item to the operating facility. (assumed earnings) This value presupposes the continued utilization of the item in conjunction with all other installed items.

Fair Market Value in Place (NOT in use):
Is the fair market value of the item installed, not in operation, but capable of being used.

Forced Liquidation Value:
The estimated gross dollar amount which could be typically realized at a properly advertised and conducted public auction held under forced sale conditions, with a sense of immediacy, and under present day economic conditions.

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 tine 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.

Residual Value:
Is the Fair Market Value of assets at the end of specified time period.

Liquidation Value in Place:
An 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 FMV, as normally defined, could not be obtained due to restrictions of time and probable conditions of the business under forced sale conditions.

Insurable Replacement cost:
Is the replacement cost new of the item after deducting the cost of the items specifically excluded in the policy, if any.

Insurable Value Depreciated:
Is the value remaining after deducting depreciation, based on an analysis of age, condition, serviceable life and utility of an item from the insurable replacement cost.