Equipment Appraisal Blog | Understanding Machinery Appraisals

7 Reasons You Should Work with an ASA Accredited Appraiser

Posted by Equipment Appraisal Services on Tue, Mar 14, 2017 @ 11:08 AM

When you're getting a business appraisal, have you checked whether the equipment appraiser is an ASA accredited appraiser? Though it may not seem important right now, ASA accreditation can make a big difference in how well your machinery valuation holds up to scrutiny, whether it's with a bank, an insurance company or a court of law. Here are a few reasons why you should always get an ASA accredited equipment appraisals.

7 Reasons you should work with an ASA accredited appraiser

  1. Standardized methodology: When an appraiser goes through the certification and accreditation process, they learn a series of standardized methodologies and the situations in which they are best applied. These methodologies have been developed over time and have been tested in legal, financial and insurance circles, proving their effectiveness in the field.
  2. Holds up to scrutiny: Because standardized methodologies are being used in the appraisal, it holds up better to scrutiny in the courts, with your bank or when making a claim with your insurance company. We've all heard stories where companies lose thousands of dollars because their equipment appraisal didn't meet particular standards; with an ASA accredited appraisal, you're covered.
  3. Knowledgeable about appraisal methods: Why do you need the appraisal? Appraisal practices are very different depending on why you need them. A forced liquidation will give you a much lower equipment valuation than a fair market value where you have plenty of time to move equipment without any outside influence.
  4. Knowledgeable about your industry: What's the market like for your business right now? If the market is in a slump, there may be a lot of that machinery hitting the market, driving the price down. An equipment appraiser who is aware of market conditions can better factor for these issues and account for them in the appraisal.
  5. Exceptional accuracy: How accurate is that machinery value you've received? Someone at your local machinery dealership may be able to give you a ballpark figure, but they're motivated by getting a sale. A certified appraiser is independent of these motivations, providing you with the most accurate possible picture of your machinery's value.
  6. Experienced in appraisal: Because equipment appraisers spend all day determining equipment values, they can provide a more accurate picture of what those values are. They're not figuring out the value of just one individual piece of equipment every once in a while. They spend their entire day looking at equipment, often within a single industry. This allows them to quickly ascertain the exact value of your equipment.
  7. Knowledgeable about equipment condition: Because accredited appraisers spend so much time looking at equipment, they have a very good idea of when a piece of equipment is in good condition and when it is in poor repair. This means that your equipment isn't being valued the same as broken-down machinery that isn't worth a thing.

By working with an ASA accredited appraiser, you can quickly discover the actual value of your equipment in a variety of situations. Staying on top of your equipment values will help ensure you have a more accurate picture of what your machinery assets are actually worth.

Tags: accredited appraisers, ASA