Equipment Appraisal Blog | Understanding Machinery Appraisals

In today’s global economy, changes in trade policy can have ripple effects across manufacturing industries. Tariffs, which are taxes imposed on imported goods, were once a forgotten issue for valuation professionals; however, with the current administration’s policies potentially taking a more permanent effect, the impact on equipment markets can be significant. From a valuation perspective, how this will influence values, resale dynamics, and replacement costs will eventually factor into the analysis.

One of the most direct effects of tariffs is the increased cost of new machinery and equipment, particularly when key components or entire machines are imported. As prices for new equipment rise due to tariffs, the value of used equipment may also increase, particularly if buyers turn to the secondary market to avoid the higher cost of buying new. For equipment appraisers, this means staying on top of evolving price trends and factoring in market scarcity or shifts in buyer behavior.

From another perspective, higher equipment costs can lead to a slowdown in capital investment, especially in price-sensitive sectors like agriculture, construction, and manufacturing. If tariffs squeeze margins or disrupt supply chains, companies may delay equipment purchases or scale back expansion plans. This can soften demand in the used equipment market, making certain assets harder to sell and thus reducing their fair market value.

Tariff announcements and trade disputes can cause sudden changes in manufacturer pricing, buyer sentiment, and business owner inventory levels. This volatility makes it harder for appraisers to rely on historical data and will create a need to understand how this current activity could impact used equipment values. Steel and electronics industries, for example, could affect transportation and machine tool industries in more subtle ways; therefore, appraisers should keep an eye on tariffs for parts that are critical components for these types of machines.

There are usually delays with the full after-effects of changing global trade policy. Therefore the appraiser should consider the effective date of their analysis and whether these effects are going to be a short-term or long-term issue.

In summary, the equipment appraiser’s role becomes even more essential during periods of economic uncertainty. Tariffs can shift the balance between domestic and international equipment markets, affect demand for used assets, and inject volatility into pricing data. By monitoring market reactions and staying informed about global trade developments, equipment appraisers can continue to deliver credible, market-sensitive valuations.

When it comes to selling used machinery and equipment, many people think the process begins and ends with placing a listing and waiting for a buyer. However, those familiar with the secondary market know there may be an important figure working behind the scenes to facilitate a fair, informed, and successful transaction: the equipment appraiser.

Traditionally, appraisers are viewed as professionals who determine the fair market value of assets for various purposes. However, in some instances, experienced appraisers, especially those with an asset management background, may consider taking on a more direct role in the resale of used machinery in the right situation, which would involve post-valuation advisory and consulting work.

One of the biggest challenges a seller can face is pricing. Set the price too high, and the equipment may sit on the market for months. Set it too low, and you risk leaving money on the table. An equipment appraiser uses detailed market analysis, depreciation trends, auction data, and comparable sales to determine a defensible, market-aligned value that will increase the chances of attracting serious buyers.

Appraisers often have extensive networks in specific industries, including dealer, broker, and end-user contacts. Their market knowledge allows them to identify potential buyers and suggest the most effective resale channels, whether that's a private sale, public auction, online platforms, or a brokered transaction.

Existing client relationships from prior valuations may also benefit the situation, where an appraiser might take on a complementary role with the seller, especially if that client has minimal experience liquidating used equipment on their own. They might advise on pre-sale improvements, such as minor repairs or upgrades that can meaningfully impact the sale price. They may also suggest bundling related assets or recommending timing strategies.

In some cases, equipment appraisers can act as independent brokers, helping to negotiate deals between buyers and sellers. Their presence as an unbiased third party can help close gaps in expectations and ensure the transaction proceeds smoothly.

Whether you're a business liquidating surplus equipment, a lender recovering assets, or a buyer looking for fair market deals, the direct involvement of a certified equipment appraiser can be the difference between an efficient and effective sale and a drawn-out, uncertain process.

In today's data-driven resale environment, the most successful transactions are rooted in accurate information, expert insight, and clear communication. No one is better positioned to provide that foundation than the equipment appraiser, who knows the market and can act as an independent source and provide value added to both buyers and sellers.

When legal disputes involve machinery and equipment, one often overlooked yet critical player is the appraiser. These professionals bring both valuation experience and the credibility needed to serve as expert witnesses in court. Their opinions can have an impact on the overall value differential involved with a case.

Typically, an appraiser is engaged by one side involved in the dispute and/or their legal counsel. However, the valuation is completed objectively, without bias, and with the courts' support to facilitate an outcome. An accredited appraiser with experience in these types of situations should be sought out, as they will provide a supportable, defensible opinion of value along with a qualified report.

Equipment appraisers do more than just assign values when acting as expert witnesses. Their conclusions are based on methodologies that meet the Uniform Standards of Professional Appraisal Practice (USPAP) or other recognized guidelines. Their reports should withstand legal scrutiny and are often central to a case's financial arguments.

Testifying in depositions and court proceedings allows appraisers to explain valuation processes in clear, accessible terms to judges, attorneys, and juries. Under cross-examination, a credible expert can maintain composure under pressure, defending their conclusions with experience and knowledge.

Situations that commonly call for expert appraisal testimony include litigation over business value or asset division; estate settlement; divorce dissolution; damage claims involving machinery (fire, flood, accidents); bankruptcy; investor buyout conflicts; tax court proceedings; and asset liquidation.

Not all appraisers are suited for the courtroom. A dependable expert witness should have professional designations (e.g., ASA, CEA, or other relevant credentials); experience in providing equipment appraisals across a broad range of industries and markets; strong communication skills, both in writing and verbal testimony; and a history of legal experience, including depositions and trial appearances.

Hiring a qualified equipment appraiser as an expert witness can add substantial credibility to a legal case. Their insight helps courts make informed decisions, especially when significant tangible investment is involved, and parties are far off in their internal assessments. If you are facing a legal matter involving machinery or equipment, consulting and engaging with an experienced appraiser early can save time, money, and frustration down the line.

When considering an updated equipment appraisal for your business’s tangible assets, it’s easy to fixate on cost. However, the value of your machinery and FF&E directly affects your bottom line, therefore, cost should not be the number one concern. Reliability should be the driving factor. Appraisal professionals know that a high-quality report is much more valuable than one conducted by an uncredentialed, inexperienced “competitor.”

A lot goes into completing an equipment appraisal behind the scenes that should be documented and presented clearly in a final appraisal report. From data gathering, research, analysis, and report writing, all of these steps go into a high-quality valuation.

Consistent communications and timely deliverables also come with paying more for a quality valuation and engaging with an accredited appraiser. Every business owner should feel comfortable that they are in good hands and can “rest easy” knowing that the job will be completed at the highest level of satisfaction. You simply won’t get this type of service with a cheaper company that uses less experienced employees who don’t have the same skill set.

If you’re presenting your appraisal to a potential lender, insurer, investor, or buyer, they will recommend using someone with the proper credentials and expertise to support their goals. Certified equipment appraisers use industry standards and have the education and experience to properly research, analyze, and prepare a detailed report that will satisfy all requirements. The most qualified valuation professionals should also be able to verify their experience as expert witnesses working with the courts, auditors, and even the IRS in the defense of their opinions.

In summary, although you may pay a bit more to have a high-quality appraisal completed for your machinery and equipment, the extra cost will be more than offset by the reliability of the end product, which can be used to accomplish any number of goals you may have as a business owner. When considering engaging with a professional, take the time to understand why the cost is more than the less expensive option. Then, ask the company providing the cheap option how quality will be factored into their valuation. If the answer is vague, it’s likely a sign that they will not deliver the type of report you need to get your goals accomplished.

The used equipment resale market in 2025 is navigating a complex landscape shaped by economic pressures, shifting demand, and evolving inventory dynamics. Let’s look at online industry-sourced summary material for three common equipment resale market sectors to discuss this further:

Construction Equipment

The construction sector is witnessing a notable increase in used equipment inventory. This surplus contributes to a downward trend in asking prices. That being said, the non-residential construction segment remains robust, bolstered by substantial investments in infrastructure projects. This ongoing demand is helping to stabilize the market for larger machinery, even as smaller equipment categories face pricing pressures.

Agricultural Equipment

The agricultural equipment market has been grappling with economic headwinds. High interest rates and declining farm incomes have led to decreases in new equipment sales, with projections indicating further decline in 2025. Consequently, farmers are increasingly hesitant to invest in both new and used machinery.

This cautious approach has resulted in rising inventories of used equipment. The oversupply is exerting downward pressure on prices, with auction values for certain categories of tractors dropping on a year-over-year basis.

Heavy Trucks and Transportation

The heavy-duty truck market is undergoing adjustments due to shifting freight demand and evolving fleet strategies. Inventory levels for sleeper trucks have decreased while day cab inventories are rising. These changes reflect a realignment in fleet compositions to adapt to current market conditions. Despite these inventory shifts, auction values for heavy-duty trucks are on the decline. This trend indicates ongoing recalibrations in the transportation equipment sector.

In summary, sellers in these markets may need to consider developing dynamic pricing strategies while leveraging online platforms to reach a broader audience. Emphasizing the value proposition of well-maintained used equipment can also attract cost-conscious buyers.

Purchasers may be able to acquire quality equipment at competitive prices, however, due diligence is essential to ensure the machinery meets operational needs and provides long-term value.

Staying abreast of economic indicators and industry developments will be vital for all participants. Adaptability and careful planning will be key to facing the challenges and capitalizing on the buy/sell opportunities that 2025 presents.