Learn More about Fractional Interest Valuation

Fractional Interest Valuation

Often mistakenly referred to as partial interest valuation, fractional interest valuation involves the valuation of a percentage of ownership in a real estate holding company or operating business entity. The ownership can be defined as a percentage of ownership or number of shares in an entity. A fractional interest can also be a direct ownership interest in real estate, such as with a Tenancy in Common.


Typically, fractional interests are not simply appraised as a fraction of the value of the entire entity. Due to issues related to control and marketability of a fractional (minority) interest, further discounts are required for lack of control and lack of marketability. These discounts are commonly referred to as:


  • Discount for Lack of Control (DLOC)
  • Discount for Lack of Marketability (DLOM)


Conversely, controlling interests may command premiums over and above simply applying the fractional interest percentage to the overall value of the company.


We conduct fractional interest valuations for real estate holding companies and operating businesses, as well as tenancy in common interests for a wide variety of purposes, from gift tax purposes to estate planning or divorce purposes.


When conducting these valuations, it is important to stay current on issues related to control premiums, the discounts for lack of control and marketability, as well as recent IRS rulings on cases related to these issues.

Get appraisals for anything, including:


  • Land
  • Vacant Land
  • Rural Properties
  • Yard Properties
  • Subdivisions
  • Professional Offices
  • Medical Offices
  • Government Offices
  • Shopping Centers
  • Retail Shopping Centers
  • Distribution Centers
  • Discount Stores
  • Convenience Stores
  • Restaurants
  • Fast Food
  • Casinos
  • Taverns
  • Gas Stations
  • Mini-Storage
  • Day Care Facilities
  • Assisted Living
  • Special Use
  • Churches
  • Golf Courses
  • Auto Dealerships
  • Industrial Warehouses
  • Industrial Flex
  • Apartments
  • Condominiums
  • Custom Homes
  • Hotels/Motels
  • Easement
  • Right-of-Ways
  • Water Rights
  • New or Proposed Developments


All appraisals can be done locally if you are a Nevada or Arizona resident.

Servicing all of Nevada and Portions of Arizona and California

Andrew J. Johnson,

MAI, SRA, ASA, MBA, CVA, CMEA

702.496.9923 Direct

888.261.3292 Fax

Email Us

NV Certified General Appraiser 

A.0007660-CG


AZ Certified General Appraiser 

31863 


CA Certified General Appraiser

3002458