Value Definitions, Terms & Terminology

Updated: Oct 7

(Adopted from the American Society of Appraisers (ASA) Valuing Machinery and Equipment (2000) for the Marine Industry).

Reference Material & Definitions incorporated, as applicable, in Marine Appraisals & Marine Survey Reports, prepared by Karatzas Marine Advisors & Co.

For "Appraisal & Valuation Definitions, Terms and Terminology", please see here!


Fair Market Value (FMV) is the estimated amount, expressed in terms of money, that may be reasonably expected for a property in an ex- change between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, as of a specific date.


Fair Market Value in Continued Use (FMViCU) is the estimated amount, expressed in terms of money, that may reasonably be expected for a property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, including installation, as of a specific date, and assuming that the earnings support the value re- ported. This amount includes all normal direct and indirect costs, such as installation and other assemblage costs, to make the property fully operational.

Fair Market Value - Installed (FMVI) is the estimated amount, expressed in terms of money, that may reasonably be expected for an installed property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, including installation, as of a specific date. This amount includes all normal direct and indirect costs, such as installation and other assemblage costs, to make the property fully operational.

Fair Market Value - Removal (FMVR) is the estimated amount, expressed in terms of money, that may reasonably be expected for a property be- tween a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, as of a specific date, considering that property will be moved to another location.

Forced Liquidation Value (FLV) is the estimated gross amount, expressed in terms of money, that could be typically realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as-is, where-is basis, as of a specific date.

Insurance Replacement Cost (IRC) is the replacement cost new as defined in the insurance policy less the replacement cost new of the items specifically excluded in the policy, if any, as of a specific date.

Insurance Value Depreciated (IVD) is the insurance replacement cost new less accrued depreciation considered for insurance purposes as de- fined in the insurance policy or other agreements, as of a specific date.

Liquidation Value can be Liquidation Value In Place, Orderly Liquidation, Forced liquidation, Salvage Value or Scrap Value. Liquidation Value in Place (LViP) is the estimated gross amount, expressed in terms of money, that could typically be realized from a failed facility, assuming that the entire facility would be sold intact within a limited time to complete the sale, as of a specific date.

Reproduction Cost New (RPRCN) is the current cost of reproducing a new replica of a property with the same or closely similar materials.

Replacement Cost New (RPLCN) is the current cost new of a similar new property having the nearest equivalent utility as the property being ap- praised.

Orderly Liquidation Value (OLV) is the estimated gross amount, expressed in terms of money, that could be typically realized from a liquidation sale, given a reasonable period of time to find a purchaser(s), with the seller being compelled to sell on an “as is, where is” basis, as of a specific date.

Salvage Value (SLV) is the estimated amount, expressed in terms of money, that may be expected for the whole property or a component of the whole property that is retired from service for use elsewhere, as of a specific date.

Scrap Value (SCV) is the estimated amount, expressed in terms of money, that could be realized for a property if it were sold for its material content, not for a productive use, as of a specific date.


Karatzas Marine Advisors & Co employs accredited marine appraisers and evaluators, holding Accredited Senior Appraiser (ASA) qualification by the American Society of Appraisers and Accredited in Business Valuation (ABV) by the American Institute of Certified Public Accountants (AICPA).

© 2018  - present Karatzas Marine Advisors & Co.   All Rights Reserved.

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