Assessment of Distress Value & Realizable Value of Property

The distress value is crucial and banks are normally expected to advance loans, giving consideration to the distress Value. Realizable value is the net amount of money that you will to get from selling one of your assets. In other words, realizable value is equal to the sale price of an asset less any applicable fees. As a General principle we can take Distress value 80% to 90% of fair market value. While fixing your fair market value you should keep in mind that at least 80% of fair market value should fetch at distress sale and realizable value should be 90%.