Fair Market Value & Liquidation

Fair market value is a major driving factor in influencing how a liquidation company does business. A quality liquidator will have a working knowledge of the marketplace, retail experience, and a network of reliable buyers at their disposal. Understanding the ebbs and flows of the marketplace and being able to determine the fair market value of items is paramount in providing quality liquidation services to clients.

To help in having a basic understanding fair market value and its relation to liquidation here are some basics:

  • stock market clipboard 354x490 Fair Market Value & LiquidationFair Market Value or FMV is ultimately an estimate of the value of an item or set of items under normal circumstances. “Normal circumstances” meaning neither the buyer or seller is under any time constraints, court orders, or other extreme motivations to buy or sell the property.

  • The value is based on the market demand for similar goods and the prices that these goods are currently going for. This is why it is common for the prices of goods to rise and fall based on the demand for these items in the marketplace. For example the demand for pool accessories may not be as high in fall and winter so the prices may also be lower than they would be in sprig and summer.

  • FMV is not an exact science and as such these values are always an approximation. Before hiring a liquidation company, get several estimates for the excess inventory or equipment in question to have the best idea of an accurate valuation.

  • Professional liquidation companies have individuals on staff who’s main job is to monitor the open market and maintain a working knowledge of what all manner of goods are selling for.

As a business owner, you have enough to think about without having to worry about following the marketplace. Working with an experienced liquidation company like Ideal Trading takes the pressure off in deciding the price points and manner in which to sell your excess inventory or old equipment.

For more information on liquidation services offered by Ideal Trading please visit our website here. Or to contact us please fill out the Quick Contact Form to the left hand side of your screen.