Market Value Appraisals versus Replacement Value Appraisals

Market Value is the most probable price which a property should bring in a competitive and open market under all conditions requisite  to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1) Buyer and seller are typically motivated

2) Both parties are well informed or well advised

*A reasonable time is allowed for exposure in the market. 

* Payment is made in terms of cash in U.S. dollars or in terms of other financial arrangements comparable thereto.

* The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Replacement Value in the price in terms of cash or other precisely revealed terms that would be required to replace a property with another of similar age, quality, origin, appearance and condition within a reasonable length of time in an appropriate and relevant market. Intangible provenance value is additive as appropriate.