An appraisal performed by Delaware Valley Machinery & Equipment Appraisers, LLC, can report many different types of value, depending on the intended use of the report, and the actual condition of the business housing the equipment.  It is therefore necessary to identify the type of value to be reported prior to the onset of the appraisal service.

DVMEA can provide appraisals with the following valuations:

Fair Market Value (FMV):

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowl­edgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and acting in what they consider their best interests; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in United States dollars or in terms of financial arrange­ments compara­ble thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales conces­sions granted by anyone associated with the sale.

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 time 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.

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 the 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.