Types of Values - Personal Property Appraisals we Offer:

Fair Market Value In Continued Use : is the estimated amount, expressed in terms of money, that may reasonably be expected for a property in an 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, including installation, as of a specific date, and assuming that the earnings support the value reported.

Market Value - In Place Appraisal : is a professional opinion of the estimated value to be realized for the property as installed for intended use, in an exchange between a willing buyer and willing seller, nether, being under an compulsion to buy or compulsion to sell, with both parties aware of the relevant facts, as of the effective date of the appraisal. Note: Market Value - In Place does not normally take into consideration leasehold improvements unless they are specifically related to the function of a particular piece of equipment. This amount does not have to be supported by the business earnings.

Fair Market Value - Removal : is the estimated amount, expressed in terms of money, that may reasonably be expected for a property, 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, as of a specific date, considering the cost of removal of the property to another location.

Orderly Liquidation Value In Place : is the estimated gross amount, expressed in terms of money, that could typically be realized from a failed facility, assuming that the entire facility would be sold intact within a limited time to complete the sale, as of a specific date.

Orderly Liquidation Value : is the estimated gross amount, expressed in terms of money, that could be typically realized from a liquidation sale, given a reasonable period of time to find a purchaser(s) with the seller being compelled to sell on an as is, where is basis as of a specific date.

Forced Liquidation or Auction Value : is the estimated gross amount, expressed in terms of money, that could be typically realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as is, where is basis, as of a specific date.

Replacement Cost Value Appraisal: A professional opinion of the cost expressed in terms of cash in dollars, the manufactures' plant, to purchase a new item of like quality and specifications. If such an item is unavailable, the appraiser has used his or her best judgment in estimating a value as of the effective date of the appraisal.

Salvage Value : is the estimated amount, expressed in terms of money, that may be expected for the whole property or a component of the whole property that is retired from service for use elsewhere, as of a specific date.

Scrap Value : is the estimated amount, expressed in terms of money, that could be realized for the property if it were sold for its material content, not for a productive use, as of a specific date.

Turn Key Value Appraisal: The values obtainable for the assets through private negotiations between a willing buyer and a willing seller on a total entity basis in order to continue operations in place, over an acceptable period of time.

Insurance Replacement Cost : is the replacement cost new as defined in the insurance policy less the replacement cost new of the items specifically excluded in the policy, if any, as of a specific date.

Insurance Value Depreciated : is the insurance replacement cost new less accrued depreciation considered for insurance purposes as defined in the insurance policy or other agreements, as of a specific date.

INCOME, COST, AND MARKET APPROACHES TO VALUE

Income Approach is based on the present value of cash flow that an asset can be expected to generate during its remaining life. This approach is based on a forecast of the business income and expenses that the property will generate over a given period of time. It assumes that the value of the property is dependent on the ability of all the assets to earn a reasonable return. This approach is best utilized for determining the business enterprise value.

Cost Approach is based on the concept of replacement or reproduction cost as an indicator of value. A prudent investor would not be expected to pay more for an item than the amount for which it could be purchased new. Further, to the extent that a particular item provides less utility than a new one, its value will be less than the cost of a new replacement or reproduction. To account for this difference, the replacement/reproduction cost new is adjusted for losses in value due to physical depreciation, functional obsolescence, and economic obsolescence.

Market Approach involves a direct comparison of the property being appraised to similar properties that have sold in the same or in a similar market. This approach is based on the principle of substitution which implies that a prudent person will not pay more to buy a property than it will cost to buy a comparable substitute property.

TYPES OF VALUATION STUDIES / REPORT WRITING

There are typically three types of studies that can be performed during an Appraisal Valuation.

The three being Inventory Appraisal, Site Inspection Appraisal, and Desktop Appraisal.

•  Inventory Appraisal is utilized when an accurate asset listing does not exist. This approach requires a detailed inventory and inspection of all the assets in person.

•  Site Inspection Appraisal involves a detailed inspection of a representative portion of the assets. This inspection is utilized to determine the physical condition, and to verify the existence of the major assets.

•  Desktop Appraisal is utilized when timing is short, or a site visit is not required. A detailed asset listing must be provided and personnel familiar with the assets should be available to discuss their condition. Note in most all valuations, images are required and supplied by the client.

TYPES OF APPRAISAL REPORTS

Under USPAP standards (Uniform Standards of Professional Appraisal Practice) , there are three types of Appraisal Reports for Appraisals: Self-Contained , Summary , and Restricted Use . The essential difference among the three reports is in the content, level of detail(s) and information provided. The Self Contained report is the most detailed of the three. The Restricted Use report is utilized when the client will be the only party relying on that report.

AVAILABILITY OF DATA AND INFORMATION

The availability of data is important in determining the timing and cost of the appraisal. The data typically required for completing the appraisal includes asset listings, purchase orders, invoices, maintenance logs, pictures, inspection reports and financial statements.

Please continue browsing our website to learn more about all of the Appraisal Services available from AppraisalOntario.com. We pride ourselves in offering independent Appraisal Valuations & Services to the private sector;, business, financial and legal communities.

 

The AppraisalOntario.com Report Writing Standards

 

Appraisal reports prepared by our Accredited Appraisers shall include, at a minimum:

-		The identity of the client.
-		The identity of any intended users of the report.
-		The intended use of the report.
-		A statement as to whether the appraisal report is a restricted-use, summary or self-contained report as defined by USPAP.
-		The identity of the subject property including its physical and economic property characteristics as relevant to the assignment.
-		A statement as to the property interest being valued.
-		An identification of the type and definition of the type of value being used as well as the source of the definition.
-		The effective date of the appraisal and the date of the report.
-		A disclosure of the "scope of work," i.e., a statement of the appraisal procedures used; the extent of inspection and the extent of research and analysis actually performed.
-		The approach to value employed as well as those discarded.
-		The market or market level explored.
-		Any extraordinary assumptions made or limiting conditions encountered including a statement that their use might have affected the assignment results.
-		The final value opinions.

 

• Also including a SIGNED & SEALED USPAP 'Certification Statement' similar to the following:
  
  "I certify that to the best of my knowledge and belief:

• 2. 1) Statements of fact contained in this report are true and correct.
  4. 2) The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. I have no (or the specified) present or prospective interest in the property that is the subject of this report, and no (or the specified) personal interest with respect to the parties involved.
  6. 3) I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
  8. 4) My engagement in this assignment was not contingent upon developing or reporting predetermined results.
  10. 5) My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
  12. 6) My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.
  14. 7) I have (or have not) made a personal inspection of the property that is the subject of this report.
  16. 8) No one provided significant personal property appraisal assistance to the person signing this report. (If there are exceptions, the name of each individual providing significant professional assistance must be stated.)"

 

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