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Liquidation value is a term used in real estate to describe the estimated value of a property if it were to be sold quickly, such as in a foreclosure or bankruptcy sale. It's like the lowest possible value that the property could fetch in a quick sale.
For example, if a property is foreclosed upon and needs to be sold quickly to satisfy the outstanding debt, the liquidation value of the property would be the estimated value that it could fetch in a quick sale. This value may be lower than the fair market value of the property, which is the value it would fetch in a regular sale.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Liquidation value, what does it mean?
It's the value a property might fetch, if it were to be seen,
In a quick sale, like in a foreclosure or bankruptcy,
When the property needs to be sold quickly, oh my!
For example, if a home goes into foreclosure,
And the bank needs to sell it, you can be sure,
The liquidation value may be lower than the norm,
As the bank wants to sell it quick, not keep it warm.
So remember, liquidation value is the estimated price,
That a property might fetch, in a quick sale that's nice.