Equipment Appraisal: What To Expect From Qualified Appraisers

1. Equipment Appraisal: What To Expect From Qualified Appraisers An equipment appraisal helps to know the real value of your machinery/equipment. This is essential if your business plans on a merger or acquisition, or if you are seeking finance for a project. Equipment appraisal also helps when filing for bankruptcy, property tax, or property dissolution. If your business needs the services of a certified equipment appraiser, here are a few things to remember: Hire a qualified appraiser: Machinery and equipment appraisal reports must be USPAP compliant, i.e. it should include details of Intended Use, Ownership Interest, etc. The report must be relevant and meaningful to the intended users and the client. It should be unbiased, objective, and partial towards none. Appraisers should be aware of the client’s equipment related problems, their value over time, and the correct approach to appraising them. You can save expenses by getting a dealer or auctioneer to value your equipment, but their report is not admissible before the IRS and lending institutions. But just because the appraiser claims USPAP compliancy, or because the report mentions USPAP compliancy, it does not have to be so- check the appraiser’s online profile to know if his USPAP review is up to date. Who is a certified equipment appraiser: The American Society of Appraisers (ASA) is the oldest and widely respected appraisal organization. ASA-accredited appraisers are respected in the community for their impartial and objective appraisal. To become a member of the ASA, appraisers must have at least 5 years of appraisal experience and pass all valuation courses, besides submitting their appraisal log. There are different types of appraisal reports to choose from: The Uniform Standards of Professional Appraisal Practice (USPAP) allows two types of appraisals- appraisal report and restricted appraisal report. While the former is used when the intended user is someone other than the client, a restricted appraisal report is issued when the client and intended user are the same. Hire an appraiser experienced in your industry: The IRS attached value to reports from appraisers experienced in the industry that the business being valued is in. For example, only certified machinery appraisal experts can help to appraise heavy machines and equipment. Look for Professional Etiquette:

2. A professional appraiser usually verifies with the intent and the scope of the valuation report. They also inform in advance about when you can expect the valuation report. An agreement listing out the scope of work and payments is signed beforehand.