Valuation for court proceedings

In court proceedings the value of the asset is often the decisive fact. A report that withstands opposing expert evidence is one where every step is traceable — from the basis of value to the sources of data.

Market and liquidation value

Depending on the proceedings, market value, liquidation value or both may be required. In enforcement proceedings liquidation value leads — it reflects realisation within a period shorter than usual and is as a rule lower than market value.

The Bulgarian Valuation Standards distinguish liquidation value under voluntary and under forced realisation. The latter reflects the probable lowest value and applies where the seller is under pressure.

Court-appointed and privately commissioned

Where the court appoints an expert, the choice is the court’s. Separately, parties may commission a private expert report for their own assessment, in settlement negotiations, or as grounds to request a further expert opinion.

Tell us which proceedings the report is for and to whom it will be presented — this governs the basis of value and the presentation.

Documents required

• Document of ownership
• Current cadastral sketch or plan
• Court papers in the case
• Inventory of assets in enforcement proceedings
• Tax assessment

See also: Real estate appraiser · Pricing · Methodology