Download general information and definition forced liquidation value appraisal

GENERAL INFORMATION AND DEFINITION
FORCED LIQUIDATION VALUE APPRAISAL
PURPOSE OF APPRAISAL:
The purpose of this appraisal was to determine the Forced Liquidation Value of the
subject property listed in the enclosed inventory. In estimating this value, it was
necessary to make a physical inspection and listing of the property contained in this study.
The results are presented in this report.
FUNCTION OF APPRAISAL:
The property interest (rights) appraised is that of ownership in fee simple, and the subject
property is appraised as if free and clear, without liens or encumbrances (unless
otherwise noted), for consideration in * (insert purpose of appraisal, i.e. financial
planning, etc.).
FORCED LIQUIDATION VALUE CONCEPT:
Forced Liquidation Value is the estimated gross amount expressed in terms of money
which could be typically realized from a properly advertised and conducted ("unreserved")
public sale ("auction"), with the seller being compelled to sell, with a sense of immediacy,
on an "as is, where is" basis with no warranty implied or expressed, and the buyer being
responsible for the cost of removal.
This concept takes into consideration inflationary or depreciable conditions and current
economic trends which may affect the sales outcome, such as physical location, difficulty
of removal, adaptability or specialization, marketability, physical condition, overall
appearance, and total psychological appeal. Further, it considers the ability to draw
interested and qualified buyers.
Inherent in this definition is the understanding that all equipment or assets listed in the
itemized report are to be sold on a piecemeal basis "as is" and "where is" with no warranty
implied or expressed -- with the buyers being responsible for removal at their own risk
and expense. Any deletions or additions to the items listed could change the
psychological and/or monetary appeal that may be necessary to gain the indicated
price(s).
This concept of value gives no consideration to any additional values that might be
obtained due to the sale of a product line, equipment in place, ongoing operation, or other
elements of value that may be produced at a public sale ("auction") that could not have
been assumed or foreseen by an appraiser.
PURPOSE AND METHOD OF APPRAISAL
FORCED LIQUIDATION VALUE
In estimating the Forced Liquidation Value, the appraiser has considered the following
approaches in arriving at indicators of value:
MARKET (SALES COMPARISON) APPROACH:
The appraisal subject is compared with like or similar items that have sold, or are currently
offered for sale, in the marketplace. By analyzing this data, the Forced Liquidation Value
may be calculated. Within these comparable items there may be pertinent factors of
comparison, which include capacity, age, location, and date of sale when applicable.
Marketability of each item of machinery and equipment is also a determinant of value.
These items may be considered in arriving at an adjusted value for each subject item
appraised.
Marketability, as a measure of demand, is approximated through recent sales under
forced liquidation conditions of comparable items of machinery and equipment. Where
actual sales are not available, relationships are often established based upon used
equipment prices for comparable items with subsequent adjustments for liquidation
conditions. (See Cost Approach.)
COST APPROACH:
This approach considers the current Replacement Cost (New) of the machinery and
equipment, less accrued depreciation. Depreciation includes loss in value due to
physical deterioration, as well as Functional and External (Economic) Obsolescence.
Physical Depreciation describes a loss of utility not restored by current maintenance
which leads to the ultimate retirement of the property. Functional Obsolescence exists
in two forms: (1) Excess capital costs, which may stem from inadequate capacity
relative to production standards, obsolete technology, or surplus operating capacity;
and (2) Excessive operating costs, which may include utility costs, labor costs,
maintenance costs, production yields, or a combination of these factors. External
(Economic) Obsolescence represents a loss in value from factors outside the item(s)
appraised, such as a depressed market for the end product manufactured by the items of
machinery or equipment, insufficient cash flow, loss of raw material or labor force, etc.
These factors are generally characterized as "negative external forces" which have an
impact upon the item(s) appraised.
The Cost Approach is utilized primarily as a secondary value indicator because it often
fails to quantify the inherent loss in value under liquidation conditions. In the absence of
comparable market sales the Cost Approach becomes the primary value indicator.
Comparisons are sometimes made to cost when comparable sales are not found under
the appraisal concept.
INCOME APPROACH:
The Income Approach was considered and determined not to be applicable under Forced
Liquidation conditions.
NOTE:
The apposite value set forth in this report represents an "aggregate" value based upon
all relevant value indicators. For this reason, isolation of any single element as a sole
basis of comparison may be inaccurate, and subsequent isolation of any single item
appraised, or group of items appraised, could result in a variance from the values
reported.
Determination of Forced Liquidation Value requires not only the judgment and ability of
the appraiser to evaluate a specific piece of equipment, but also the experience to
anticipate what could happen under a given set of circumstances based upon actual sales
held under Forced Sale Conditions of like or similar machinery and equipment, with
adjustments made for:
(1)
(2)
(3)
(4)
(5)
(6)
Property rights conveyed;
Financial terms (cash sale);
Motivation or conditions of sale;
Relevant market conditions and date of sale;
Location of property;
Physical characteristics relevant to physical depreciation, functional obsolescence,
and external (economic) obsolescence.
The balance of forces which affect values for particular types of machinery or pieces of
equipment is analyzed by the appraiser and the final value assignment on each item is,
in part, a reflection of this analysis.
Machinery and equipment is described and valued as it would be set up and sold. In
some instances, an entire line of related machinery is designed to perform a particular
function as an integral unit and should justify greater value application as a unit rather
than if it were separated out. An auction sale is set up in a manner which is believed to
realize the highest end total, leaving nothing unsold. Our approach to appraising for
Auction Value utilizes this theory as a base.
GENERAL INFORMATION AND DEFINITION
PURPOSE OF APPRAISAL:
The purpose of this appraisal was to determine the Fair Market Value Installed / In Place of the
subject property listed in the enclosed inventory. In estimating this value, it was necessary to
perform a physical inspection and listing of the property contained in this study. The results are
presented in this report.
FUNCTION OF APPRAISAL:
The property interest (rights) appraised is that of ownership in fee simple, and the subject property
is appraised as if free and clear, without liens or encumbrances (unless otherwise noted), for
consideration in * (insert purpose of appraisal i.e. financial planning).
SCOPE OF THE APPRAISAL:
In estimating value, an analysis by a certified appraiser knowledgeable in the valuation of personal
property was conducted to determine the Fair Market Value Installed / In Place. Market
adjustments were made to arrive at the value conclusions including, when applicable, comparable
sales and an evaluation of potential purchasers. A comprehensive analysis of the subject
personal property composition was then performed, including all pertinent factors pertaining to
value as of the effective date of this appraisal.
FAIR MARKET VALUE INSTALLED / IN PLACE CONCEPT:
Fair Market Value Installed / In Place is the estimated amount of an installed
property expressed in terms of money, at a certain point in time, that may
reasonably be expected in exchange between a willing buyer and a willing seller
with equity to both, neither being under any compulsion to buy or sell and both
being fully aware of all relevant facts.
This concept considers the Fair Market Value of an item plus all direct cost(s) attributable to
installation.
The Fair Market Value Installed / In Place, as particularly applied to equipment, is the value of a
piece of equipment installed and may, or may not, be for continued use.
INFORMATION ANALYZED
The Income Approach, although considered, was not applied. Direct and indirect comparable
market data was considered to establish value and develop Economic Obsolescence factors if
the Cost Approach was used. If no market data was found comparable to the subject property
or any indications of offers made, the appraiser considered all other available information as
sufficient to estimate value as individually applied.
The equipment was being used for the purpose as designed unless otherwise indicated. The
only alternative use, other than the designed use, was salvage or scrap. The equipment was
being utilized for the purpose as designed and, therefore, at its Highest and Best Use. Highest
and Best Use has been considered for the valuation of all property listed in the report and is
defined as: "The reasonably probable and legal use of machinery and equipment that is
physically possible, appropriately supported and financially feasible, and results in the highest
value in the appropriate marketplace." The appropriate marketplace must be consistent with the
concept of value. It is understood that Highest and Best Use is the purpose for which an item
was designed by the manufacturer.
PURPOSE AND METHOD OF APPRAISAL
In estimating the Fair Market Value Installed / In Place, the appraisers have considered
the following approaches in arriving at indicators of value:
MARKET (SALES COMPARISON) APPROACH:
A comparison of similar property sold or currently offered for sale. Within these
comparable items may be pertinent factors of comparison including capacity, age,
location, and date of sale, when applicable. These items may be considered in arriving
at an adjusted value. Marketability of personal property is also a determinant of value.
Marketability, as a measure of demand, is estimated through recent sales of comparable
personal property. Where sales are not available, relationships are established based
on dealer asking prices for comparable items.
COST APPROACH:
An estimate of the present Replacement Cost of the personal property less accrued
depreciation. Depreciation includes loss in value due to Physical Deterioration as well
as Functional and Economic Obsolescence. Functional Obsolescence is the decreased
capacity of the item to perform the function intended in terms of current standards and
specifications. Functional Obsolescence may stem from a deficiency within the subject,
such as poor design or outmoded style, or may result from super adequacy. Economic
Obsolescence represents a loss in value from factors outside the subject, such as a
depressed market for product manufactured, governmental regulations and laws, etc.
These factors are generally characterized as negative external forces which have an
impact on value.
Physical Depreciation describes a loss of utility or usefulness of the property
due to the using up or expiration of its useful life caused by wear and tear,
deterioration, exposure to various elements, physical stress, or similar
factors, not restored by current maintenance which ultimately leads to the
retirement of the property.
Functional Obsolescence is the loss in value or usefulness of a property
caused by inefficiencies or inadequacies of the property itself, when
compared to a more efficient or less costly replacement property that new
technology has developed. Symptoms suggesting the presence of
functional obsolescence exists in two forms: (1) excess construction or
capital costs which may stem from inadequate capacity relative to
production standards, obsolete technology, or surplus operating capacity;
and (2) excessive operating costs which may include utility costs, labor
costs, maintenance costs, production yields, or a combination of these
factors.
External (Economic) Obsolescence represents a loss in value to the
property caused from factors outside the assets appraised, such as
economics of the industry for the subject equipment which may include
availability of financing; insufficient cash flow for the required return of, and
on, investment; loss or increased cost of raw material, labor sources, or
utilities (without an offsetting increase in product price); passing of new
legislation; change in ordinances; reduced demand for the product;
increased competition; inflation or higher interest rates; or similar facts.
These factors are generally characterized as negative external forces which
have an impact upon the item appraised.
PURPOSE AND METHOD OF APPRAISAL (Cont’d.):
When there is sufficient market comparable sales, the Cost Approach is utilized primarily
as a secondary value indicator. This is because it often fails to quantify a loss in value
that may exist under certain market conditions. In the absence of comparable market
sales the Cost Approach becomes the primary value indicator.
INCOME APPROACH:
The Income Approach to value was considered in this valuation and determined not to be
applicable. The income attributable to the assets could not be quantified. In estimating
the Fair Market Value Installed / In Place, the appraisers have assumed that there was
adequate cash flow to support the indicated value. Capitalization of the net income that
a specific item could produce. This approach is only used in cases where market sales
data is not available. It is valid only if income can be isolated to a specific item of
personal property. If this assumption is found to be incorrect, the indicated value must
be reduced to reflect the economic penalty relative to the External (Economic)
Obsolescence.
NOTE:
The apposite value set forth in this report represents an "aggregate" value based upon
all relevant value indicators. For this reason, isolation of any single element as a sole
basis of comparison may be inaccurate; and, subsequent isolation of any single item
appraised, or group of items appraised, could result in a variance from the values
reported.
Determination of Fair Market Value Installed / In Place requires not only the judgment and
ability of the appraisers to evaluate a specific piece of equipment, but also the experience
to anticipate what could happen under a given set of circumstances based upon actual
sales held under Fair Market Sale conditions of like or similar machinery and equipment,
with adjustments made for the following:
(1)
(2)
(3)
Property rights conveyed;
Financial terms (cash sale);
Motivation or conditions of sale;
(4)
(5)
(6)
Relevant market conditions and date of sale;
Location of property;
Physical characteristics relevant to physical depreciation,
functional
obsolescence,
and
external
(economic)
obsolescence.
The values are also adjusted to installation considerations which may include:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Transportation;
Wiring;
Special foundations;
Difficulty of installation (i.e., 2nd floors, special walls, pits, etc.);
Adaptations;
Plumbing;
Applicable taxes;
Setup and debugging;
Other incurred costs.
GENERAL INFORMATION AND DEFINITION
ORDERLY LIQUIDATION VALUE IN-PLACE APPRAISAL
PURPOSE OF APPRAISAL:
The purpose of this appraisal was to estimate the Orderly Liquidation Value In-Place
of the furniture, fixtures (trade fixtures), machinery, equipment, and vehicles. In
estimating this value, it was necessary to make a physical inspection and listing of the
property contained in this study. The results are presented in this report.
FUNCTION OF APPRAISAL:
The property interest (rights) is that of ownership in fee simple, and the subject assets
are appraised as if free and clear, without liens or encumbrances (unless otherwise
noted), and to establish a value basis to secure mortgage financing collateralized in part
by the described property.
ORDERLY LIQUIDATION VALUE IN-PLACE CONCEPT:
Orderly Liquidation Value In-Place is the estimated gross amount expressed in terms
of money which is projected to be obtainable from the sale of a facility, assuming that the
supporting business entity has failed and that the entire facility would be sold intact within
a limited time frame to complete the sale.
This concept further considers that Fair Market Value, as normally defined, could not be
obtained due to the time consideration, as well as the probable condition of the business
under forced sale conditions. The value would reflect acceptability in the marketplace in
light of conditions and should be readily obtainable from competitors and/or new business
investors.
The value would be qualified in that it would have to assume that economic conditions
would be the same or better as when inspected, and that the projected growth would be
unchanged. It would further assume that supply and demand could cause a fair profit to
be made, and that the ratio of cost to manufacture to retail price was not a cause of failure.
The purpose of this appraisal was to estimate the Orderly Liquidation Value In-Place
of the subject furniture, fixtures (trade fixtures), machinery, equipment, and vehicles. In
estimating this value, the appraiser has considered the following approaches in arriving
at indicators of value:
PURPOSE AND METHOD OF APPRAISAL
ORDERLY LIQUIDATION VALUE IN-PLACE
COST APPROACH:
An estimate of the present Replacement Cost of the furniture, fixtures (trade fixtures),
machinery, equipment, and vehicles, less accrued depreciation is made. Depreciation
includes loss in value due to physical deterioration, as well as Functional and External
(Economic) Obsolescence.
Physical Depreciation describes a loss of utility not restored by current maintenance
which leads to the ultimate retirement of the property.
Functional Obsolescence exists in two forms: (1) Excess capital costs, which may
stem from inadequate capacity relative to production standards, obsolete technology, or
surplus operating capacity; and (2) Excess operating costs, which may include utility
costs, labor costs, maintenance costs, production yields, or a combination of these
factors.
External (Economic) Obsolescence represents a loss in value from factors outside the
item(s) appraised, such as a depressed market for the end product manufactured by the
item(s) of machinery or equipment, insufficient cash flow, loss of raw material or labor
force, etc. These factors are generally characterized as "negative external forces" which
have an impact upon the item(s) appraised.
The Cost Approach is utilized primarily as a secondary value indicator since it often fails
to quantify the inherent loss in value under certain market conditions. Comparisons are
sometimes made to cost when comparable sales are not found under the Sales
Comparison Approach.
MARKET (SALES COMPARISON) APPROACH:
The appraisal subject is compared with similar items that have sold, or are currently
offered for sale, in the marketplace. By analyzing this data, the Orderly Liquidation
Value In-Place may be calculated. Within these comparable items, there may be
pertinent factors of comparison, which may include capacity, age, location, and date of
sale, when applicable. Marketability of each item of
Furniture, fixtures (trade fixtures), machinery, equipment, and vehicles is also a
determinant of value. These items are considered in arriving at an adjusted value for
each item appraised. Marketability, as a measure of demand, is approximated through
recent sales in the marketplace of comparable items of furniture, fixtures (trade fixtures),
machinery, equipment, and vehicles. Where actual sales are not available, relationships
are often established based upon used equipment prices for comparable items, with
subsequent adjustments for liquidation conditions. (See Cost Approach.)
DIRECT SALES COMPARISON of like items of furniture, fixtures (trade fixtures),
machinery, equipment, and vehicles under liquidation conditions is the preferable and
most accepted approach in determining Orderly Liquidation Value In-Place.
NOTE:
The assignment for any Orderly Liquidation Value In-Place appraisal does not
necessarily indicate the concept as a proper method of disposal if market testing should
be required at a future date. These value concepts and their inherent assumptions are
requested for various uses or guidelines by the addressee shown on the letter of
transmittal. The assumed set of circumstances may not allow the concept to be
recommended when -- and if -- a liquidation should be required.
In certain circumstances, as in the case of custom furniture, fixtures (trade fixtures),
machinery, equipment, and vehicles, a market analysis may be undertaken to ascertain
current demand and/or marketability and subsequent assignment value. A Market
Analysis may also be undertaken if Functional or Economic Obsolescence is a key factor
in a major machine tool or piece of equipment. A judgment call may be required with no
comparable backup. That value assignment could be formed by an experienced
appraiser having acquired value orientation from years of observations under the
liquidation concept. Special or custom equipment, in most cases, is appraised in this
manner.
Certain categories of furniture, fixtures (trade fixtures), machinery, equipment, and
vehicles are subject to routine loss in value as a result of usage (physical deterioration).
In other instances, Functional Obsolescence is determined through a comparison with
other items that may have a more efficient and cost effective operation.
NOTE: The apposite value set forth in this report represents an "aggregate" value based
upon all relevant value concepts. For this reason, isolation of any single element as a
sole basis of comparison may be inaccurate, and subsequent isolation of any single item
appraised, or group of items appraised, could result in a variance from the values
reported.
Determination of the Orderly Liquidation Value In-Place requires not only the judgment
and ability of the appraiser to evaluate a specific piece of equipment, but also the
experience to anticipate what could happen under a given set of circumstances based
upon actual sales held under liquidation sale conditions of like or similar furniture, fixtures
(trade fixtures), machinery, equipment, and vehicles with adjustments made for the
following:
(1)
(2)
(3)
Property rights conveyed;
Financial terms (cash sale);
Motivation or conditions of sale;
(4)
(5)
(6)
Relevant market conditions and date of sale;
Location of property;
Physical characteristics relevant to physical depreciation, functional obsolescence,
and external (economic) obsolescence.
The values are also adjusted for installation considerations which may include:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Transportation;
Wiring;
Special foundations;
Difficulty of installation (i.e., 2nd floors, special walls, pits, etc.);
Adaptations;
Plumbing;
Applicable taxes;
Setup and debugging;
Other incurred costs.
The method further assumes that the equipment will be liquidated "in-place" due to
management failure, yet will continue to be used for the original purpose.
Furniture, fixtures (trade fixtures), machinery, equipment, and vehicles is described and
valued as currently operating. In some instances, a line of related machinery is designed
or has been modified for a particular function or operation and will justify greater value
application as a cumulative unit rather than as individual parts. However, some portions
of a particular line may contribute little value to that line; thus, those portions may be
individually listed.
The balance between forces which affect value for particular types of machinery or pieces
of equipment is analyzed by the appraiser and the final judgment on each specific piece
of equipment is, in part, a reflection of this analysis. The analysis may also include a
review of auction sales and recognized trends affecting similar or related equipment on a
regional or national basis.
The Orderly Liquidation Value In-Place concept makes the following assumptions:
(1)
The subject's market area served remains a profitable one;
(2)
Failure to capture market share was based upon management rather than product
line causes;
(3)
The product is needed in the marketplace and demand was not the cause of failure;
(4)
The equipment, as installed, can profitably operate to produce the current
products.
The reader should realize that there is a presumption of management failure as the basis
for the Orderly Liquidation Value In-Place concept. This value concept is one
requested by the client and should not be considered as a recommendation by the
appraiser. The concept is considered fair and reasonable if an interested buyer could
be found for use of the Assets "in place" after failure. This hypothetical assumption may
or may not come to pass at a future test.
It should be understood that the value indicated does not consider its replacement in like
kind and utility, but rather what the specific equipment observed is worth under the
scenario as defined. With all things equal, it is possible that an exact piece of equipment,
if found, could be obtained for the value indicated under the concept. Comparisons
would have to take into account adjustments for exacts such as location, installation,
condition, industry, locational economics, and possible draw through all "causes" and
"effects" associated with the concept.
Realistically, exact comparables are not always possible, therefore, the only use of the
report can be applied to the specific equipment at its location and it is not to be used, nor
is it to be represented as, a valuation as would be applied to replacement or depreciated
replacement for insurance purposes. However, the item description, in most cases,
contains the specifics that would be needed for determining replacement in like kind and
utility, although values may be different than those indicated by this study.
It is not probable that if all equipment were to be replaced within a plan, that every item
would be found; therefore, some items would be replaced at used prices higher or lower
than the price indicated, whereas others would have a requirement for replacement or
reproduction cost (new) due to the inability to locate this item in the new or used market.
GENERAL INFORMATION AND DEFINITION
FAIR MARKET VALUE (EXCHANGE) APPRAISAL
PURPOSE OF APPRAISAL:
The purpose of this appraisal was to determine the Fair Market Value (Exchange) of the
subject property listed in the enclosed inventory. In estimating this value, it was necessary
to perform a physical inspection and listing of the property contained in this study. The
results are presented in this report.
FUNCTION OF APPRAISAL:
The property interest (rights) appraised is that of ownership in fee simple, and the subject
property is appraised as if free and clear, without liens or encumbrances (unless
otherwise noted), in order to determine asset value for consideration in * (insert purpose
of appraisal i.e. financial planning).
FAIR MARKET VALUE (EXCHANGE) CONCEPT:
Fair Market Value (Exchange) is the amount expressed in terms of money that may
reasonably be expected for a property in exchange between a willing buyer and a willing
seller, with equity to both, neither being under any compulsion to buy or sell, and both
being fully aware of all relevant facts. (In the valuation of personal property, this
definition must be further defined based on the function and purpose of the appraisal.)
with buyer being responsible for cost of removal.
PURPOSE AND METHOD OF APPRAISAL
FAIR MARKET VALUE (EXCHANGE)
In estimating the Fair Market Value (Exchange), the appraisers have considered the
following approaches in arriving at indicators of value:
MARKET (SALES COMPARISON) APPROACH:
The appraisal subject is compared with like or similar items that have sold, or are currently
offered for sale, in the marketplace. By analyzing this data, the Fair Market Value
(Exchange) of the Assets may be calculated. Within these comparable items there may
be pertinent factors of comparison, which include capacity, age, location, presumed
condition, and date of sale. Marketability of each item of machinery and equipment is
also a determinant of value. These items may be considered in arriving at an adjusted
value for each subject item appraised.
Marketability, as a measure of demand, is approximated through recent sales in the
marketplace of comparable items of machinery and equipment. Where actual sales are
not available, relationships are often established based upon used equipment prices for
comparable items. (See Cost Approach.)
COST APPROACH:
This approach considers the current Replacement Cost (New) of the machinery and
equipment, less accrued depreciation. Depreciation includes loss in value due to
physical deterioration, as well as Functional and External (Economic) Obsolescence.
Physical Depreciation describes a loss of utility not restored by current maintenance
which leads to the ultimate retirement of the property. Functional Obsolescence exists
in two forms: (1) excess capital costs, which may stem from inadequate capacity relative
to production standards, obsolete technology, or surplus operating capacity; and (2)
excessive operating costs, which may include utility costs, labor costs, maintenance
costs, production yields, or a combination of these factors. External (Economic)
Obsolescence represents a loss in value from factors outside the item(s) appraised, such
as a depressed market for the end product manufactured by the items of machinery and
equipment, insufficient cash flow, loss of raw material or labor force, etc. These factors
are generally characterized as "negative external forces" which have an impact upon the
item(s) appraised.
When there is sufficient market comparable sales, the Cost Approach is utilized primarily
as a secondary value indicator. This is because it often fails to quantify a loss in value
that may exist under certain market conditions. In the absence of comparable market
sales the Cost Approach becomes the primary value indicator.
INCOME APPROACH:
The Income Approach was considered and determined not to be applicable in determining
Fair Market Value (Exchange) in this report.
NOTE:
The apposite value set forth in this report represents an "aggregate" value based upon
all relevant value indicators. For this reason, isolation of any single element as a sole
basis of comparison may be inaccurate; and subsequent isolation of any single item
appraised, or group of items appraised, could result in a variance from the values
reported.
Determination of Fair Market Value (Exchange) requires not only the judgment and ability
of the appraisers to evaluate a specific piece of equipment, but also the experience to
anticipate what could happen under a given set of circumstances based upon actual sales
held under Fair Market Sale conditions of like or similar machinery and equipment, with
adjustments made for the following:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Property rights conveyed;
Financial terms (cash sale);
Motivation or conditions of sale;
Relevant market conditions and date of sale;
Location of property;
Physical characteristics relevant to physical depreciation, functional obsolescence,
and external (economic) obsolescence,
Buyer is responsible for cost of removal.
The balance of forces which affect value for particular types of machinery or pieces of
equipment is analyzed by the appraisers and the final value assignment on each item is,
in part, a reflection of this analysis.
Machinery and equipment is described and valued as if it would be set up and sold. In
some instances, an entire line of related machinery is designed to perform a particular
function as an integral unit and should justify greater value application as a unit rather
than if it were separated out.