Replacement Value (RV) is defined as the highest amount it would require to replace an item with another of similar and like quality and condition within a reasonable period of time and in an appropriate and relevant market. Replacement Value is generally used in appraisals for Insurance and Damage and Loss allowing for adequate coverage of personal property or settlement of an insurance claim.
Fair Market Value
Fair Market Value (FMV), as defined by IRS Section 1.170 and 20.2032(b), is “the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts”. Fair Market Value takes into consideration the most appropriate and relevant open market conditions and is used in appraisals for Charitable Donations, Trusts and Estates, Equitable Distribution of Assets, and Art Financing.
Marketable Cash Value
Marketable Cash Value (MCV) is defined as the “probable proceeds of a property less expenses, such as dealer commissions, auction house fees, advertising, insurance, travel and shipping expenses” and is considered when determining the net value of personal property that is to be sold.