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Market Value - In Place
A
professional opinion of the estimated most probable price expressed in
terms of currency to be realized for property in an exchange between a
willing buyer and a willing seller, with equity to both, neither being
under any compulsion to buy or sell, and both parties aware of all
relevant facts, as installed for intended utilization, as of the
effective date of the appraisal report.
Market Value (Fair Market
Value)
The “FAIR MARKET VALUE”, means the value in arm’s-length
transactions, consistent with the general market value. ‘General Market
value’ means the price that an asset would bring as the result of bona
fide bargaining between well-informed buyers and sellers who are not
otherwise in a position to generate business for the other party, or the
compensation that would be included in a service agreement as the result
of bona fide bargaining between well-informed parties to the agreement
who are not otherwise in a position to generate business for the other
party, on the date of acquisition of the asset or at the time of the
service agreement. Usually, the fair market price is the price at which
bona fide sales have been consummated for assets of like type, equality,
and quantity in a particular market at the time of acquisition, or the
compensation that has been included in bona fide service agreements with
comparable terms at the time of the agreement, where the price or
compensation has not been determined in any manner that takes into
account the volume or value of anticipated or actual referrals.
Orderly Liquidation Value
A professional opinion of the estimated most
probable price expressed in terms of currency which the subject equipment
could typically realize at a privately negotiated sale, properly
advertised and professionally managed, by a seller obligated to sell over
an extended period of time, usually within six to twelve months, as of the
effective date of the appraisal report. Further the ability of the
asset group to draw sufficient prospective buyers to insure competitive
offers is considered. All assets are to be sold on a piecemeal basis
'as is' with the purchasers responsible for the removal of assets at their
own risk and expense. Any deletions or additions to the assets
appraised could change the psychological and/or monetary appeal necessary
to gain the value indicated. Forced
Liquidation Value
A professional opinion of the estimated most
probable price expressed in terms of currency which could typically be
realized at a property advertised and conducted public auction sale, held
under forced sale conditions and under present day economic trends, as of
the effective date of the appraisal report. Conclusions taken into
consideration are physical location, difficulty of removal, physical
condition, adaptability, specialization, marketability, overall appearance
and psychological appeal. Further, the ability of the asset group to
draw sufficient prospective buyers to insure competitive offers is
considered. All assets are to be sold on a piecemeal basis 'as is'
with the purchasers responsible for the removal of assets at their own
risk and expense. Any deletions or additions to the assets appraised
could change the psychological and/or monetary appeal necessary to gain
the price indicated. Insurable Cash Value
A professional opinion estimated in terms of
money that would be required to duplicate, as nearly as possible, the
equipment described in the appraisal report. This value includes
machine cost, freight, rigging, installation, electrical and pneumatic
connections, foundation costs and leveling of the equipment. In
cases where individual machines cannot be replaced model for model, a
machine of equal capacity and similar age would be substituted. This
value makes no provisions for travel costs, loss of business costs, and
applicable taxes. [1]
The “Fair Market Value” According to Section 1877(h)(3) of the Social
Security Act and further defined in the Stark II, Phase III Final Rule
(42 CFR Section 411.351), an appropriate premise of value when
purchasing medical practices is Fair market Value, as defined below. |
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