The purpose of an appraisal is usually to provide an opinion of value. There are different types of values including market value, use value, going-concern value, investment value, assessed value, and market rent.
Defined as “The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently and knowledgeably, and for self-interest, and assuming that neither is under undue duress.”
Investment value represents the value of a specific property to a particular investor. It is also known as the value of a property to a particular investor based on that person or entity’s investment requirements. These specific requirements are frequently different from a market value.
A going-concern is an established or operating business with a undetermined future remaining life. Certain types of properties such as hotels, motels, restaurants, manufacturing enterprises and the like have physical real estate assets which are an integral part of an on-going business. The market value of such a property including both the tangible and intangible assets is commonly called its “going-concern” value. In a going-concern value, there is an assumption the business enterprise is expected to continue operating into the future. Liquidation value assumes that the enterprise will cease operations. Often a division of realty and non-realty components of value is required.
Use Value is the value of a specific property for a specific use. In estimating use value, the appraiser focuses on the value the real estate contributes to the enterprise of which it is a part, without regard to the highest and best use of the property.
Real Estate Tax Protest
Southwest Appraisal will accept assignments that [Blank] potential lowering of Full Cash Values. Full Cash Values are the bases of appealing Real Estate taxes. The full cash value is the value that is established by a local assessor for tax purposes. It is this value that can be protested and, if successful, the property owner will ultimately pay less property taxes. Assessed values are a fraction of Full Cash Values.