Vol. 82 (2023)
Special Issue - Visions of the future in real estate appraisal

Appraising forced sale value by the method of short table market comparison approach

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  • Maurizio d'Amato,
  • Giuseppe Cucuzza,
  • Giampiero Bambagioni
Maurizio d'Amato
Department of Civil, Environmental, Land, Construction and Chemistry (DICATECh), Polytechnic University of Bari
Bio
Giuseppe Cucuzza
Department of Agriculture, Food and Environment (Di3A), University of Catania
Bio
Giampiero Bambagioni
Faculty of Architecture, Sapienza University of Rome
Bio
DOI: https://doi.org/10.36253/aestim-13808

Published 2023-12-08

Keywords

  • market approach,
  • short table market comparison approach,
  • forced sale value,
  • intrinsic value,
  • auctions

Copyright (c) 2023 Maurizio d'Amato, Giuseppe Cucuzza, Giampiero Bambagioni

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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Abstract

For International Valuation Standards (IVS) the estimate of the “forced sale” value implies a value judgment with reference to a degeneration of the market value basis, since “a forced sale” is a description of the situation in which the exchange takes place, not a distinct basis of value (IVS 2022, Par. 170.1).The paper illustrates a model that can be used to measure the difference between market value and forced sale value, as an aid to real estate valuations related to real estate executions. The proposed method is aimed at determining the difference between the estimated values and the final sales values obtained through the executive process, on the basis of the Short Table Market Comparison Approach (MCA). This method contributes more appropriately to the estimate of the value obtainable from the outcome of the enforcement process than arbitrary reductions in the market value. An application on a small sample of residential properties undergoing enforcement procedure highlights the possibility of using the Short Table MCA even with a limited number of comparables.

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