AIC23 MTS - Indirect Costs and Fair Market Value in Continued Use

Session Description

This presentation will discuss the applicability of a series of indirect costs, where/when to apply them and how to depreciate them. In valuing a processing under the premise of Fair Market Value in Continued Use, the appraiser needs to “stand in the buyer’s shoes.” A purchaser of a facility has two basic options 1) buy a used facility, or 2) build a new facility. A new facility will require the buyer to experience a variety of indirect (or “soft”) costs. Buying a used facility will allow the buyer to avoid some of those costs – this avoidance has value and is embedded in the individual assets.

Speaker

Raymond A. Springer, ASA | President | Springer Appraisal & Consulting

Continuing Education

Review of this session recording will award 1 CE hour. 

CPE credit is not awarded for this pre-recorded offering.