What is meant by market value based appraisals, as compared to cost based appraisals? Market value based appraisals are those warranting direct market evidence due to the service application. These appraisals are usually used for financing matters or the sale or purchase of assets. Value concepts derived from market based evidence include Market Value, Orderly Liquidation Value, and Forced Liquidation Value. Cost based appraisals usually consider the original cost or current replacement cost new of the asset, plus various installation and engineering factors, less depreciation from all causes. While under appraisal theory utilizing each basic starting point should indicate a similar value conclusion, the layers of additional expenses and depreciation may be difficult to estimate in a cost based approach. Therefore, rather than being theoretical, it oftentimes is best to use direct source information, that is, market based data. Evidence is obtained from existing databases as well as published source information. Yet such information may be difficult to accurately correlate to the subject assets, or may be dated. Accordingly, often it is appropriate to further directly discuss with vendors and dealers the market for and transactions relating to the subject assets, checking information one against another as warranted.