Negative Value?

[AnonApprsr]

There is no such thing as a negative market value. At that point there is no market value. You can then put a negative number, and call that the value of the property. But it's not "market value." At least, that's how I think about it in my head. I'll figure out the "REAL" answer when I have to appraise something with a "negative value."

 

[Mr Rex]

Yes. Such sales are quite common these days in the timeshare market. :new_all_coholic:

I thought we were talking about Real Estate.

 

[Couch Potato]

I thought we were talking about Real Estate.

Many timeshares are Real Estate. :new_all_coholic:


Still, there are companies going around with a doom and gloom sales pitch getting people to pay them a few hundred dollars to take the timeshare.

 

[Tim The Enchanter]

I'd think most if not all Superfund sites would have negative value. It's a money pit for the owner with no good use for the land. At least not right now.

 

[Couch Potato]

I'd think most if not all Superfund sites would have negative value. It's a money pit for the owner with no good use for the land. At least not right now.

Will someone pay to get rid of it? If not, it does not have negative value. For a typical property without value people just walk away letting it go to the government for taxes. Only in a situation where that is not possible can negative value occur. Such is the case with a timeshare because the management company will pay the taxes regardless of whether or not the owner does anything. The maintenance fees just keep accumulating. People will pay to get out from under that obligation.

 

[VegasWayne]

If a property has negative value does it get a negative property tax bill?

 

[Michigan CG]

There is no such thing as a negative market value. At that point there is no market value. You can then put a negative number, and call that the value of the property. But it's not "market value." At least, that's how I think about it in my head. I'll figure out the "REAL" answer when I have to appraise something with a "negative value."

You do not know what you do not know.

 

[David Mescon]

This one got me thinking... An old acquaintance of mine, (an attorney), had a disagreement with his landlord, (a group of attorneys). He stopped paying his office rent. This went on for a year and a half, before they paid him a good sized, five figure sum to vacate. Negative leasehold value - there you have it!

OK, not really negative leasehold, but you get the gist. They ended up paying him.

 

[George Ellerman]

With regard to a tangible asset, there can not be a " less-than-0" amount regarding value or any other characteristic. A zero sum is the least you can have concerning any "real" item. You may have a negative equity position or negative cash flows but not a negative real estate value. A whole of anything is only equal to the sum of each valued part. when you get rid of all the parts and their respective values you got nothing left.:icon_smile:

 

[CANative]

You do not know what you do not know.

"Negative market value" defies the very definition of Market Value. You'll have to use a different definition.

Furthermore, IMO, Zero or -0- is not an appropriate term in regard to MV as defined. It should be "none" or "no market value."