Forced sale value

Forced sale value represents the anticipated selling price of real property in a distressed or compulsory sale scenario, such as foreclosure, bankruptcy liquidation, or court-ordered disposal. This valuation is inherently lower than ordinary market value because:

• The seller operates under time constraints and limited negotiating leverage
• Prospective buyers recognise the urgency and submit reduced bids
• The property may suffer from deferred maintenance or other defects
• Marketing exposure and viewing periods are restricted

Professional valuers typically apply a forced sale discount ranging from 15–35% relative to full market value, contingent on market conditions and asset class.