Help. Need good definition for OLV

[Bob Ipock]

Orderly Liquidation Value

Need a real estate definition for OLV.....not for machinery.


If you can help, thanks!

 

[Mike Kennedy]

http://www.appraisalcourseassociates.com/bookchanges/content/MarketValue.htm
· Liquidation value - May be orderly liquidation value or forced liquidation value. Orderly liquidation value assumes an adequate amount of time to advertise and market the property prior to sale to help ensure the most lucrative results. Forced liquidation value assumes an inadequate amount of time.

_________________


Liquidation value is the most probable price that a specified interest in real property is likely to bring under all of the following conditions:

1. Consummation of a sale will occur within a severely limited future marketing period specified by the client. The actual market conditions currently prevailing are those to which the appraise property interest is subject. The buyer is acting prudently and knowledgeably. The seller is under extreme compulsion to sell. The buyer is typically motivated. The buyer is acting in what he or she considered his or her best interest. A limited marketing effort and time will be allowed for the completion of the sale. Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto.
2. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Orderly liquidation value

This value definition differs from the previous one in that it assumes an orderly transition, and not extreme compulsion.
http://www.wrightrealtors.com/home/market_value.htm

 

[Mr Rex]

Google it, 31,500 returns.:new_llying:

 

[PLCG]

The long version of liquidation value - got nuttin on "orderly" liquidation value

liquidation value
The most probable price that a specified interest in real property is likely to bring under all of the following conditions:
1. Consummation of a sale will occur within a severely limited future marketing period specified by the client.
2. The actual market conditions currently prevailing are those to which the appraised property interest is subject.
3. The buyer is acting prudently and knowledgeably.
4. The seller is under extreme compulsion to sell.
5. The buyer is typically motivated.
6. The buyer is acting in what he or she considers his or her best interest.
7. A limited marketing effort and time will be allowed for the completion of a sale.
8. Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto.
9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

 

[Bob Ipock]

Thanks Mike. Do you still get the daily ASC report? I have not been able to open mine for some time now and just have not stopped to find out why.

Rex....most of those hits are something other than real estate. OLV is most often used with machinery and stuff like that. I did do a good bit of searching before I asked. I called 3 CGs who were unfamiliar with the term.

Thanks!

 

[Mr Rex]

This is the first one under the defintion:


Definitions of orderly liquidation value on the Web:

• liquidation value at which the asset or assets are sold over a reasonable period of time to maximize proceeds received.
  https://www.cicbv.ca/Glossary
• This is an appraisal term representing the appraiser's best judgment on the value of the appraised item under circumstances where there is adequate time (usually three months) to collect bids for the sale of the item. This contrasts with forced liquidation value.
  www.londonmanhattan.net/bfterminology.htm
• is a professional opinion of the estimated most probable price expressed in terms of Canadian Dollars which the subject equipment could typically ...
  independentappraisals.ca/html/terms.html
• the estimated gross amount, expressed in terms of money, which could typically be realized from a liquidation sale, given a reasonable period of time to find a purchaser(s) with the seller being compelled to sell on an as-is/where-is basis, as of a specific date.
  www.ceaaappraisers.com/glossary.asp
• is the amount of gross proceeds which could be expected from the sale of the appraised assets, held under orderly sale conditions, given a reasonable period of time in which to find a purchaser(s) considering a completed sale of all assets, "as is and where is," with the buyer assuming all costs ...
  www.narvco.com/definitions_of_value.html

 

[Bob Ipock]

The long version of liquidation value - got nuttin on "orderly" liquidation value

liquidation value
The most probable price that a specified interest in real property is likely to bring under all of the following conditions:
1. Consummation of a sale will occur within a severely limited future marketing period specified by the client.
2. The actual market conditions currently prevailing are those to which the appraised property interest is subject.
3. The buyer is acting prudently and knowledgeably.
4. The seller is under extreme compulsion to sell.
5. The buyer is typically motivated.
6. The buyer is acting in what he or she considers his or her best interest.
7. A limited marketing effort and time will be allowed for the completion of a sale.
8. Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto.
9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Thanks! That is the one I found. The client did not like the words "extreme compulsion" and I can understand that. A multi-billion $ bank would not likely have "extreme compulsion" to sell a relatively low valued property. I think you found that one the same place I did....and underneath the definition for Liquidation Value" was a note that said OLV was the same definition except for......it assumes orderly transition rather than extreme compulsion. Makes sense to me.


[edit] Orderly liquidation value
This value definition differs from the previous one in that it assumes an orderly transition, and not 'extreme compulsion.[5]



Thanks to all of you.