Value and Principles of Valuation

Types of Value

(1) MARKET VALUE - most probable price in an arm's length transaction. This is what appraisers estimate. (2) ASSESSED VALUE - value assigned by the tax assessor for property tax purposes (under Prop 13, this is typically the acquisition value plus 2% annual increases). (3) INVESTMENT VALUE - value to a specific investor based on their investment criteria. (4) INSURABLE VALUE - replacement cost of improvements. (5) LIQUIDATION VALUE - quick-sale value, typically below market.