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FLORIDA REAL ESTATE SALES ASSOCIATE COURSE

Real Estate Appraisal

Section 8 of 26

Liquidation Value: This is the estimated amount a property would bring if it had to be sold very quickly, often under duress (such as a foreclosure or bankruptcy sale). Because the seller cannot wait for the right buyer, liquidation value is typically lower than market value.Investment Value: This is the value of a property to a specific individual investor based on their unique goals and criteria. For example, if an investor needs a 12% return to be happy, a property is worth less to them than to an investor who is satisfied with a 6% return. Investment value is subjective (specific to the person), whereas market value is objective (specific to the market).Salvage Value: This is the estimated value of the useful components of a structure that can be removed and sold before the building is demolished. It is essentially the "scrap" value of the parts (copper, wood, fixtures) at the end of the property's economic life.
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