Definitions of Value
FAIR MARKET VALUE The price that property would sell for on the open market between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. This type of value is used for appraisals for estate tax, estate planning, family division, donation, art as collateral, and financial planning.
RETAIL REPLACEMENT VALUE The amount it would cost to replace an item with one of similar and like quality, purchased in the most appropriate marketplace in a limited amount of time. This type of value is used for appraisals for insurance coverage and damage or loss.
MARKETABLE CASH VALUE The value realized, net of expenses, by a willing seller disposing of property in a competitive and open market to a willing buyer, both being reasonably knowledgeable of all relevant facts and neither being under constraint to buy or sell. This type of value can be used for appraisals for family division and art as collateral.