10 FOREST VALUATION 



general knowledge of current prices and the desire to buy is 

 approximately equal to the pressure for sales. Should the owner 

 stand in need of money he will tend to lower prices, and vice 

 versa. Forced sales for cash or to liquidate assets are made 

 at prices much below the market and establish what are termed 

 wrecking values. The difference in value due to forced sales 

 is greatest with property used in production or for special pur- 

 poses, of which real estate is a good example. A forced sale 

 of forest lands, especially of young timber with no market value, 

 will seldom secure more than a fraction of the true value of 

 the property. 



18. Appraised Value. Values must frequently be estab- 

 lished in the absence of sales, or as a basis for such transactions 

 when previous sales are either lacking or unreliable as a standard 

 of value. Instances are found in condemnation proceedings, 

 in settlements for damages, and in inventories or the valuation of 

 assets for purposes of determining the financial status of a busi- 

 ness. The principle underlying appraisals is that the value 

 to the owner, for continued ownership and use, must be deter- 

 mined rather than its possible value for sale, since the owner 

 must not be forced to accept a lower value than that represented 

 by his use or enjoyment of the property. Appraised values, for 

 this reason, frequently differ sharply from sale values, especially 

 in the case of slow-moving assets. 



