Value Concepts

The value concept utilized in appraisals is determined by the purpose and function of the appraisal, and the resulting values will reflect the impact of various markets. There is usually a significant difference in the amount of value from one concept to another. In many cases, clients request multiple values using two or more value concepts. This is especially helpful for comparisons when considering various alternatives.

The appraiser must clearly define the value concept being used in an appraisal. Care must be taken to insure that the concept used fulfills the need or reason for the appraisal. The concept of value must be appropriate and not misleading to the reader of an appraisal report.

Other value concepts are available to the appraiser. Those listed are the most commonly required in standard assignments. Unique situations may require unique concepts of value or combinations of various concepts. Hadco Appraisers are fully trained and familiar with all value concepts and can advise and assist clients in selecting the value concept which best fits their needs.

  • Insurable Value
  • Fair Market Value
  • Reproduction Cost
  • Going Concern Value
  • Fair Market Value in Use
  • Fair Market Value in Place
  • Liquidation Value in Place
  • Liquidation Value – Orderly
  • Liquidation Value – Forced
  • Replacement Value
  • Investment Value
  • Auction Value