Are there recognized procedures that enable us to show the differences between price and market value?
Garippa: The Appraisal of Real Estate, 12th Edition, has basically laid out a set of parameters that can be utilized to carve out of the sale price of these complex properties the bricks and sticks portion. And what they’ve indicated, and have subsequent course materials on, is that when a complex property is sold, the work force is normally sold with it. Well, somebody spent a lot of time and effort to put together that work force; that has a market value. If you want to conclude merely the value of the real property, that incremental number for the work force must be subtracted. That hadn’t been done before and now that’s been recognized as an appropriate tool just like name brand. If a hotel has Marriott’s name on it, all things being equal to another property that has my name on it, the Marriott brand name will be worth far more because people identify with that, it will attract business. This is another tool to show the difference between the price of the property and the market v
