Frequently Asked Questions
What is an appraisal?
How are machinery and equipment asset appraisals different from other appraisals?
What are the top reasons for an equipment asset appraisal?
What kind of appraisal do I need?
How do I choose an appraiser?
What is USPAP?
What is an equipment asset appraisal?
An equipment asset appraisal is the independent and unbiased process of determining the supportable opinion of value of tangible equipment assets as of a specific date. Appraisals can be performed for a variety of value premises from fair market value in place and in use, to forced liquidation value.
How are equipment asset appraisals different from other appraisals?
The unique nature and portability of machinery and equipment create a need for many different valuation terms that don’t exist in other appraisal fields such as real estate or gems and jewels. Many of the items we appraise are unique and that have no comparable sales.
Equipment asset appraisals also vary due to the intended use of the appraisal valuation. For example, the valuation method used for forced liquidation in insolvency scenario results in a very different value than valuation for replacement cost needed for an insurance loss claim. This also illustrates why it is critical for our equipment asset appraiser to fully understand the intended use of your appraisal.
What Are the Top Reasons for an Appraisal?
- Asset Based Lending
- Determine Residual Value
- Bonding and Insurance
- Equipment Purchase or Disposal
- Acquisitions and Liquidations
- Taxation and Asset Verification
What kind of equipment appraisal do I need?
We provide FREE consultation of your equipment appraisal needs. By thoroughly reviewing your specific situation, we can accurately determine what type of equipment appraisal you need.
How do I choose an equipment appraiser?
It is important to use an equipment appraiser who is a member of the American Society of Appraisers or another organization represented on the Appraisal Foundation Board.
Be sure that your appraiser has taken a USPAP course within the last 2 years since USPAP changes frequently.
What is USPAP?
USPAP (Uniform Standards of Professional Appraisal Practice) is published and maintained by the Appraisal Standards Board (ASB) of the Appraisal Foundation, a non-governmental entity charged by Congress to set all appraisal standards. USPAP identifies a minimum set of standards that apply in all appraisal, appraisal reviews, and appraisal consulting assignments. USPAP has been specified by the IRS as a crucial qualification for many types of appraisal reports, including equipment appraisals for tax-related reasons.