Forced Liquidation Value Versus
Orderly Liquidation Value
What does this mean to you and the value of your assets?
Forced Liquidation Value (FLV)Forced Liquidation Value means that the assets will be sold in the shortest possible time (typically 30 to 45 days or less) depending on how strong the market is for a specific asset.
Orderly Liquidation Value (OLV)Orderly Liquidation Value allows for more (additional, an extended timeframe, an increased amount of time), means that the time to sell the assets will increase, normally from "shortest possible time" to an expanded time frame of 180 days to as much as 365 days (six to twelve months?)
The Most Probable PriceBoth definitions are based on a professional opinion of the estimated most probable price expressed in currency that the subject assets could typically realize, as of the effective date of the appraisal, at a properly advertised and conducted sale. By the very nature of negotiation and the extended marketing period, an OLV, GENERALLY, yields higher prices than an FLV.
Important ConsiderationsIt is important to note that an OLV of assets may not bring a higher price. Some assets when put on the open market will not bring more, even with time because of many factors;
- Supply and Demand at the Time of Sale
- Potential Pool of Buyers
- Current Market Conditions
Red Stripe is constantly working to understand our changing market to help you realize the most probable selling price.
Photos From Actual Appraisals