What Is A Forced Sale Value?
Asset Valuations definition of a Forced Sale Value / Auction Value is where an item is valued on the basis where no reserve has been placed on the item/asset and the bidders determine the value on a ‘where is as is basis’.
How is Forced Sale Value Used?
The Forced Sale Value Basis is used in the event of determining what a person (s) expectation would be on auction.
Also, the type of persons or company needing this information would be:
- Liquidation Companies;
- Insurance Companies;
- Business Owners; and
- The general pubic (if needed)
How is Auction Value Determined?
Additionally, The Forced Sale Value is determined through industry experience, by selling assets at an auction.
The valuers at The Asset Valuations Group are all registered auctioneers, who work closely with the above companies.
The Asset Valuations Group has a sister company called Auctioneering Link Australia.
Moreover, the second way this Value is achieved, is dividing the Market Value Price by 25%. That usually gives us an accurate estimation.
For example, if a fridge is worth $100.00 Market Value, we would expect a figure of around $25 on Auction for the same item.