Most Used Appraisal Value Types

This is an overview of the most used value types within commercial appraisal. Selecting which value type is most relevant to your situation is largely a function of the intended use of the appraisal and any requirements of the appraisal results.

Refer to the value vault for all value types and related appraisal topics.

Market Value

Market Value assumes a normal marketing time and that the buyer and seller are equally as motivated to consummate the sale (no one is under pressure). Read more about market value here and/or view the formal definition.

“As is” Market Value

“As Is” Market Value refers to the Market Value of the property as it sits legally and physically as of the effective appraisal date. Read more about “as is” market value here and/or view the formal definition.

Fair Market Value

Fair Market Value (FMV) assumes that a buyer and seller are aware of the facts and that the price in which the property exchanges for is not the result of a forced sale. Read more about Fair Market Value (FMV) here and/or view the formal definition.

Disposition Value

Disposition Value assumes a shorter than average marketing time, due to the fact that the seller is under pressure to sell relatively quickly. Read more about Disposition Value here and/or view the formal definition.

Liquidation Value

Liquidation Value assumes a severely shortened marketing time, due to the fact that the seller is under extreme pressure to sell very quickly. Read more about Liquidation Value here and/or view the formal definition.

Business Enterprise Value (BEV)

Business Enterprise Value, also known as BEV, refers to the value of the business only. Read more about Business Enterprise Value here and/or view the formal definition.

Going Concern Value

Going Concern Value is the total value of the real estate plus the business operations. Read more about Going Concern Value here and/or view the formal definition.

Retrospective Value 

Retrospective Value is the value of a property on a specific previous date. A Retrospective Value opinion is not a value itself, rather, it modifies another value type (market value, fair market value, etc.) and associates a specific previous date with it. That is, Retrospective Value can be used with Fair Market Value to create Retrospective Fair Market Value. Read more about Retrospective Value here and/or view the formal definition.

Prospective Value

Prospective Value is the anticipated value of a property on a specific future date. A Prospective Value opinion is not a value type itself, rather, it modifies another value type (market value, disposition value, etc.) and associates a future date with it. Prospective Value can be used with Market Value to create Prospective Market Value. Read more about Prospective Value here and/or view the formal definition.