Market Value is defined as the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion.
Desk Review is defined as a valuation review that is limited to the data presented in the report, which may or may not be independently confirmed. It is generally performed using a checklist of items. The reviewer checks for the accuracy of the calculations, the reasonableness of data, the appropriateness of methodology, and compliance with client guidelines, regulatory requirements and professional standards.
Reproduction Cost (New) is defined as the amount necessary to reproduce and/or replace the property in accordance with current market prices for materials, labor, manufactured equipment, contractor’s overhead, profit and fees and all other attendant costs associated with its acquisition and installation in place but without provision for overtime or bonuses for labor and premium for materials.
Business Valuation the act or process of arriving at an opinion or estimated of the value of a business or entity or an interest therein.
Market Rent is defined as the estimated amount for which a property, or space within a property should lease on the date of valuation between a willing lessor and a willing lessee on appropriate terms in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion.
Sound Value is defined as the cost of reproduction new less allowance for depreciation established with reference to the relative desirability of the property for present and future performance as compared to a property under known or assumed condition of operations, but without regard to the economic conditions which might influence the profitability of operation or the status of business or industry as a whole.
Replacement Cost (New) is defined as the cost of replacing an asset with an equally satisfactory substitute asset. Normally derived from the current acquisition cost of a similar asset, new or used, or of an equivalent productive capacity or service potential.