DEFINITION OF LIQUIDATION PROPERTY VALUE

DEFINITION OF LIQUIDATION PROPERTY VALUE

The article examines the interrelation of market and liquidation value of the appraisal subject. It was established that the approach of “break-even” sale of a subject at liquidation value, which is predominating in the literature sources, shows the results essentially different from the ratio of th...

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Bibliographic Details
Published in:Business, management and economics engineering Vol. 11; no. 1; pp. 19 - 33
Main Authors: Gnenny, Oleg, Dailydka, Stasys, Lingaitis, Vytautas
Format: Journal Article
Language:English
Published: Vilniaus Vilnius Gediminas Technical University, Department of Construction Economics & Property 01-01-2013
Vilnius Gediminas Technical University
Subjects:
Dependence
Discount rates
Education
Elasticity of demand
Hypotheses
income increase
investment volume
Liquidation
Market value
multiobjective optimisation
Price cuts
Property
Property values
rational investment
Real estate appraisal
set function
Studies
time of project realisation
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Summary:The article examines the interrelation of market and liquidation value of the appraisal subject. It was established that the approach of “break-even” sale of a subject at liquidation value, which is predominating in the literature sources, shows the results essentially different from the ratio of the prices of free and accelerated sales that can be observed on the market. The article offers an alternative approach to definition of market value coefficient, which considers switching to liquidation value. This approach is based on functional dependence of the coefficient on the ratio of limited and unlimited period of exposition.
ISSN:2029-7491
2669-2481
2029-6169
2669-249X
DOI:10.3846/bme.2013.02