Dictionary

fair market value: A median price, often used in auction valuations. It is based on the price a buyer/seller is willing to pay/accept in a general situation where neither party is desperate to acquire or dispose of the property.

fractional appraisal: A single component of a whole property that is appraised separately and without analysis of the component's value outside of use on the property.

going concern value: A valuation based on intangibles. Example: the estimated value of a business, assuming its processes, employees, equipment and all other essential systems will continue.

immediate cash liquidation market level: Typically used by wholesalers and secondhand resellers to acquire property at bargain prices on a cash-only basis.

intended use: A requirement by USPAP that a specific purpose for use is stated on all appraisals and is effective one time only. This requirement is typically enforced when acquiring financing.

intended user: In real estate, the intended user is usually the institution providing the loan. An appraisal form must list this user.