Types of Appraisals

Central Ontario Auctions provides assurance in all our appraisals, with consistent and accurate reports. There are many different purposes for appraisals, including:

1. ‣Bankruptcy: receiverships, trustees
   

2. ‣Bailiffs: distraining of assets
   

3. ‣Charitable Donations
   

4. ‣Divorce: dispute over value of marital assets
   

5. ‣Estate: probate, equitable distribution, fair market value for sale to third party
   

6. ‣Financial: banks (for loan purposes [SBDL], or to evaluate their equity position), accountants (for business evaluations), and financial advisors (for estate planning)
   

7. ‣Insurance: pre-loss (endorsements or riders), after loss, loss of value due to damage

Terminology

1. ‣Fair Market Value: a professional opinion of the estimated most probable price to be realized for assets in an exchange between a willing buyer and a willing seller, neither being under any compulsion to buy or sell.
   

2. ‣Cost of Reproduction: a professional opinion of the cost to purchase a new item of like quality and specifications. If such an item is unavailable, the appraiser has to use their best judgment in estimating a value as of the effective date of the appraisal.
   

3. ‣Orderly Liquidation Value: a professional opinion of the estimated most probable price which the asset could typically realize at a privately negotiated sale, properly advertised and professionally managed, by a seller obligated to sell over an extended period of time (typically within 6-12 mo.), as of the effective date of the appraisal report. The ability of the asset group to draw sufficient prospective buyers to ensure competitive offers is considered. All assets are to be sold on a piecemeal basis (as is) with purchasers responsible for removal of assets at their own risk and expense. Any additions or deletions to the total assets appraised could change the psychological and/or monetary appeal necessary to gain the value indicated.
   

4. ‣Forced Liquidation Value: a professional opinion of the estimated most probable price which could typically be realized at a properly advertised and conducted public auction sale, held under forced sale conditions and under present day economic trends, as of the effective date of the appraisal report. Conclusions taken into consideration are physical location, difficulty of removal, physical condition, adaptability, specialization, marketability, overall appearance and psychological appeal. The ability of the asset group to draw sufficient prospective buyers to ensure competitive offers is considered. All assets are to be sold on a piecemeal basis (as is) with purchasers responsible for removal of assets at their own risk and expense. Any additions or deletions to the total assets appraised could change the psychological and/or monetary appeal necessary to gain the value indicated.
   

5. ‣Desktop Opinion: a professional opinion of the appropriately defined value to be realized by the sale of equipment, in which the opinion is generated from inventory lists, photos and/or other informational materials supplied to the appraiser and evaluated without the benefit of a physical inspection. Desktop Opinions can be used under certain circumstances, but it is not appropriate for many appraisal needs where a physical inspection and verification of asset condition is required for an accurate valuation.