Usually residual value assigned to the property, which was seized as a result of the debt of the organization or individual.The market price may significantly differ from the liquidation value.Such property is typically marketed faster and therefore cheaper, because the needs of the funds for it proceeds, to repay the loan or debt.
Sometimes it happens that the liquidation value of the assets can not cover the debt of a natural person, because lenders sell everything in a very short time.It plays a role, how is dispossession.
company who gave the property, which can be estimated with the payment of the loan, can count on the loyalty of the bank.Eg, seizures can be sold for a bargain price that will fit the size of the payment.
If the property is removed forcibly, then wait for indulgence, to put it mildly, ridiculous.The property will be put up for auction with a very short lead times.Many buyers in the markets is not averse to use such a moment and get it in order to sell more expensive.In the United States, the liquidation value may also be forced, although often taken orderly, that is the price that corresponds to the debt.
Thus, the liquidation value - the price for the property of debtors, which does not correspond to the market value.It is produced for sale in a very short period of time, which do not meet the standards, regulations for similar commercial transactions.
Currently, there are considerable problems due to the different treatment of the liquidation value, because the law there are a lot of inconsistencies associated with the term.
approach to the process of revaluation of assets of the business can be profitable, comparative and cost.Three approaches, but only one solution, so you should take responsibility for the issue of the calculation of the liquidation value.
best option would be a comparative approach, ie an approach based on the sales prices of similar products on the open market.This option is ideal if the time to sell an asset not as much as we would like.Analyzing the open market, you can see how the value of the object determines the buyer himself.But the final decision should take into account all the results obtained in the framework of all three approaches.
When calculating the liquidation value, you can use two methods:
- method based only on a comparative approach.Unfortunately, this approach can only be used in that situation, if the hands have all the information about sdelochnyh prices at a forced sale;
- indirect method in their calculations based on the liquidation value of the property on the open market.Using the indirect method, it is necessary to determine the discount upon a forced sale.
usually to determine the nature of a forced sale discount used the expert method, since the amount of the required information is limited.The calculation of the correction factor based on the factors that determine the level of reduction of the market value of each specific type of object.
How to evaluate the cost of the apartment, the owner diverted for non-payment of the loan, you will know if you consult an expert in this matter.Most banks have their own appraisers, who are highly qualified and can quickly determine the price of a particular property.
What is the valuation of assets and why should involve the appraiser?
residual value is aimed at addressing a number of issues, depending on the users of such information.The main consumers of such information are credit managers, enterprises, as well as arbitration managers.
For example, the credit manager of the liquidation value of the knowledge necessary for evaluation of the property pledged as collateral in obtaining credit.Here in this situation to the manager, and the bank that issued the loan, you will need professional help - an appraiser who will determine the resale value of an object.Not the fact that the object is implemented, it is simply used as a safety net in the event of non-payment of funds to the bank.
