Forced Sale Value
Find out more about a Forced Sale Value.
Forced Sale Value Means?
Forced Sale Value (FSV) is a term used in the valuation industry to denote the estimated monetary amount that a particular asset would likely attract if it were sold under conditions where normal sale timeframes do not apply. Asset Valuations, with its deep expertise in the Brisbane market and beyond, is proficient in determining this value for various assets under compulsion.
The concept of FSV typically comes into play in scenarios such as bankruptcy, liquidation, or other instances where the asset must be sold quickly, often resulting in a lower price than what might be achieved in a standard market environment with willing buyers and sellers. The FSV is inherently lower than market value due to the constraints of time and the pressures on the seller to conclude a transaction rapidly.
Asset Valuations conducts an FSV assessment by considering a range of factors that influence the price in a forced sale scenario. This includes the current state of the market, the liquidity of the asset type, the pool of potential buyers, and the typical time frames for sale under normal circumstances versus the accelerated timeline of a forced sale.
Their valuation professionals in Brisbane are equipped to navigate the complexities that come with valuing assets under duress. They use their knowledge and experience to make well-informed judgments on the likely recoverable value of assets when time is a limiting factor.
For lenders, creditors, or owners facing the prospect of a forced sale, Asset Valuations provides crucial guidance on the realistic value expectations of their assets. This insight aids in managing risk, preparing for financial impacts, and setting appropriate reserve prices in the event of auction or sale.
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;
- Banks;
- Business Owners; and
- The general public (if needed)
What People Say About Us
Asset Valuations Group Testimonials
Matthias Klepper
01/11/2023
Thank you Paul and the team for providing excellent service to all my clients
Jeff Attard
25/10/2023
The team at Asset Valuations Group handled my enquiry promptly & professionally. Will not hesitate to use Paul & the team again should it be required. Jeff
Club Vitality
20/10/2023
Great Valuer very fast and efficient and friendly to deal with would recommend
Luke Kestle
27/09/2023
I needed a valuation done on a very unique race car and I needed it done very quickly. Paul and his team did a great deal of research and I was extremely impressed with the level of resolution they were able to present to industry specifics within my industry. Paul delivered on time and the valuation was in my opinion very accurate. Great job AVG!
Andrew George
14/09/2023
Paul and his team from AVG were extremely friendly and helpful. They called to ensure they understand what I was after for the valuations, they reviewed several of my jewelry and watch collection. I will definitely be back for any future needs.
Steven Murray
16/08/2023
One of the best valuers I’ve ever dealt with. Great team, efficient and always deliver on time. Thank you AVG
James Harvey
09/07/2023
Great communication, and a clear transparent process.
Sam Carson
28/06/2023
Great to deal with, very knowledgeable and excellent customer service.
Colin McEown
28/06/2023
Jarrad at Asset Valuations Group assisted us with an urgent valuation right at the end of financial year, when we'd expect they'd be at their busiest. We were very happy with their service!
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.
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