Types of Value

In the appraisal of real estate there are many types of value that can be utilized.  Several of the most relevant value measurements are discussed below:

Investment Value: Value to a specific investor based on that investor's requirements, tax rate, financing, etc.

Insurable Value: Value of those portions of the property that are physically destructible -- utilized for insurance coverage.




Assessed Value: Value established by the tax assessor. Used to determine and levy local real estate taxes.

 Liquidation Value: Likely price that would result from a forced sale such as a foreclosure or tax sale.  Utilized when sale must occur with limited exposure to the market or under restrictive conditions.



Reproduction Value: Value of a substiute property identical to the subject property including use of same era of materials, design features and construction methods.

Replacement Value: Value of a substitute property having substantially the same utility as the subject property, but using modern materials and design / construction practices.