Equipment Appraisal Blog | Understanding Machinery Appraisals

How Complex Is Production Line Equipment Appraisal for Manufacturing?

Posted by Equipment Appraisal Services on Mon, Apr 15, 2019 @ 08:00 AM

production line appraisal

If you have a factory, you already know how much of your company's assets are tied up in your production line. But what are those assets really worth? The process of having a production line equipment appraisal can seem complex and confusing, but it's actually a straightforward set of calculations that follow a regular process. However, it's a process best done by a certified equipment appraiser. Why? There are a number of special aspects of the process that needs to be handled by a professional to ensure that they're done correctly. Here's a quick look at the overall process and some of the complexities involved.

How Complex Is Production Line Equipment Appraisal for Manufacturing?

  • To start, the appraiser will gather basic information about all the different equipment that is being used on it, such as the year it was put into use, the manufacturer and model, any options, kits or modifications from the basic model and the number of hours and conditions it has been used it. This allows them to gather any additional information that they need to know to appraise the equipment, including information on past equipment that they've already appraised.
  • They'll then ask about current issues, maintenance and repair that has been done on each piece of equipment. This provides them with some background on how well the equipment has been cared for and what condition it may be in. This is part of the process of determining the remaining useful lifespan for the machinery, which is a vital part of determining its value. As an example, you would almost certainly pay more for a piece of machinery that is expected to remain in productive use for ten years versus one that was expected to fail within a couple years.
  • Next, they'll examine the equipment itself. This allows them to see if there are any potential issues that have not been caught yet. This can include issues such as small hydraulic leaks, pulleys that are going out of alignment, gears that are beginning to wear or slip, lowering performance levels or similar indicators that can lead to expensive repairs or potential issues down the road, giving you the opportunity to make vital repairs.
  • Additionally, the appraiser will take into consideration unique challenges that face your industry, whether they're specific to your industry or to the market as a whole. This can include issues such as a market downturn that has caused a large surplus of that type of equipment on the market, driving down prices or whether there's strong growth in another region that can be leveraged to sell older equipment at the best possible premium.

When you're having a production line equipment appraisal performed, there are any number of factors that can come into effect during the process that will need to be considered. However, the appraisal report that you receive from a certified equipment appraiser will provide you with much more information beyond the value of your production line. Because an equipment appraiser works with a wide range of machinery on a daily basis, they'll be able to compare your equipment to other machinery they've looked at and give you valuable insights, such as prospective failure points, longevity and other information that will help you make smart decisions about your production line management.

Tags: Production Line Appraisal

How A Medical Equipment Appraisal Can Help Your Practice Get Ahead

Posted by Equipment Appraisal Services on Mon, Apr 01, 2019 @ 08:00 AM

Medical M&E Appraisal

Today's healthcare practice is facing any number of challenges on a daily basis. No-shows for appointments, changes to EHR and HIPPA practices, new treatments and medications, and an endless sea of patients who need to be seen as quickly as possible. Having the right tools can make a huge difference in how efficiently your practice operates, but many physicians and practice managers aren't quite sure how to make those changes effectively. Fortunately, something as simple as a medical equipment appraisal can make a huge difference in your practice's bottom line. Here's how.

How Medical Equipment Appraisal Can Help Your Practice Get Ahead

To start, what does your practice need to have to improve efficiency and patient outcomes? Is it new equipment that works well with your EHR system and digitization strategy? Maybe it's a new EHR suite that takes your interoperability to a whole new level. A new location to spread your practice's influence and make it easier for patients to reach you? What about social responsibility obligations to organizations such as Doctors Without Borders?

 To make these changes happen, you need to invest capital. But how much capital do you actually have? Are your assets listed accurately in the books, or are there discrepancies that could cause your practice serious issues down the road? This is one of the reasons why having an appraisal performed on your medical equipment can be so very beneficial to your practice. If you don't know the value of your equipment, will you get a good deal on new equipment or be taken advantage of? Can you secure loans for that new EHR suite or location without knowing those values? What will the value of your equipment donation to charitable organizations actually end up being and how will it impact your bottom line?

When you have a professional appraisal performed by a certified equipment appraiser, you're gaining much more than the knowledge of the value of your medical equipment. You're receiving the calculated opinion of a professional who is well-versed in medical equipment and understands the many nuances of your industry. They're able to then provide you with a carefully crafted report that will not only document your equipment's value, but can serve as a valuable tool in its own right.

Because a certified equipment appraiser has been taught to use standardized methodologies that have been well-tested in a wide range of real-world circumstances, the report that they prepare is able to stand up to strong scrutiny in financial, insurance, legal and tax agency circles. Having this verified information available quickly will make it much easier for you to document equipment value for a loan, an insurance claim, a court case, a tax appeal, a sale negotiation and many other circumstances you may not have considered yet.

By taking the time to have a medical equipment appraisal performed on your practice's machinery, you can take advantage of the equity in that equipment to improve your practice, whether through selling the machinery to upgrade your practice's capabilities, securing a loan for EHR upgrades or adding accuracy to your balance sheet to provide peace of mind and better accountability. However, these advantages can only be realized when you use a certified equipment appraiser to go over your practice's assets. They have the knowledge and experience to ensure that the final values you are presented with are accurate and the report generated useable for your future needs.

using market data under the cost approach

Tags: Valuing Medical M&E

5 Reasons to Get an Equipment Appraisal for Tax Purposes

Posted by Equipment Appraisal Services on Fri, Mar 22, 2019 @ 08:00 AM

 

Equipment Appraisal for Tax Purposes

When you're dealing with tax issues, getting an appraisal for tax purposes can quickly help you to clear up any problems with the value of your equipment.  However, that's not the only reason you should get an equipment appraisal done at that time! Appraisals provide you with a world of other benefits as well, many of which you may not have considered. Here's a quick look at some of the reasons you should get an equipment appraisal when dealing with a tax issue.

 

5 Reasons to Get an Equipment Appraisal for Tax Purposes

  1. To prove value. Is your equipment worth what the book says, what the sale magazine says or what eBay says? It may be none of the above. Your equipment is in a specific condition and has a particular expected useful lifespan that can't be quickly be determined by simply looking at another piece of machinery. It takes years of experience and training to understand the full intricacies of equipment value.
  2. To fight a bad appraisal. If you're dealing with a tax issue, there's a good chance it's a bad tax appraisal. Tax assessors need to estimate value on a wide range of items, not just your equipment, and they often do that job badly. Fortunately, they'll virtually always listen to the opinion of a certified equipment appraiser, and if they won't, the appeals board will.
  3. To have a record of depreciation over time. How much value has your equipment lost since you purchased it? Knowing this information is vital not only on your tax paperwork, but also to the assets that you have on your books. It's hard to make a solid business decision when your books and balance sheet are not completely accurate, but an appraisal helps you sort out this issue.
  4. To get a timeline on replacement. Should you budget to replace that equipment this year, next year or in five years? It's really hard for most people to estimate the remaining useful lifespan of a piece of equipment, but machinery appraisers do it every day. They can also help point out potential repairs that may lengthen that lifespan, buying you precious time to get a little more income before the big investment.
  5. To have on hand for future uses. An equipment appraisal gives you proof of value and when prepared by a certified equipment appraiser, uses tested methodologies that will hold up in court, at your financial institution, with your insurance company, when selling machinery and in a number of other situations. By having one on hand that is recent, you can deal with a whole world of potential issues quickly and easily.

Getting a machinery appraisal for tax purposes is an excellent idea, especially when dealing with a tax assessment that was inaccurate. But as you can see, it's not the only good reason for getting an equipment appraisal performed. Knowing the actual value of your machinery gives you a solid basis for any number of business ventures, and having that value calculated by a certified equipment appraiser gives you a strong position for many future issues you may run into. The report that is generated by a certified appraiser will hold up well not only with tax agencies, but also with financial institutions, court systems and any number of other situations. 

Tags: Equipment Appraisal for Tax Purposes

How Does a Machinery Appraisal Factor into a Business Dispute?

Posted by Equipment Appraisal Services on Fri, Mar 08, 2019 @ 08:00 AM

business_dispute_asset_appraisal

Whether you're dealing with an estate, the breakup of a partnership or a lawsuit, a business dispute appraisal can provide you with tools to prove the value of your equipment from those who would inflate or deflate its value for their own benefit. But exactly how does this type of appraisal impact your machinery value and how does it benefit your side of the situation? Here's a quick look to help you get started.

How Does a Machinery Appraisal Factor into a Business Dispute?

Let's take a look at a few situations in which a business dispute appraisal may help you prove the value of your assets. This doesn't mean that the appraiser will automatically provide you with a higher or lower figure than the other side, just one that has been calculated fairly using tested, standardized methodologies:

  • A nasty divorce is pitting two sides of a business against each other. One person wants out, the other wants to keep the company. The one who wants out wants top dollar for the years they put into the business, and isn't afraid to inflate the company's value and the value of its machinery assets. The one who is staying with the company resents this manipulation and therefore wants to only pay a fair market value. This could also be the other way around, with the individual who is leaving the business only wanting what's fair while the one staying with the company deliberately lowballing the value of the business and its equipment assets. A dispute appraisal determines the actual value of the equipment.
  • When a long-run business suddenly loses its owner to a heart attack or car accident, the family is suddenly faced with splitting up the business. However, some family members are willing to wait for the right buyers at a higher price while other family members want to quickly liquidate the equipment and assets in order to get on with their lives instead of dragging out the entire process. How do you determine the fair value to make everyone as happy as possible? A dispute appraisal looks at the entire situation and helps determine what would be a fair value all the way around.
  • Tragedy strikes, and a worker is killed on the job at your construction site. The surviving family members sue your company, going after everything they can in their pain, and are determined to take it all. They know a little about the industry and have seen equipment like yours go for a lot of money. But what they don't understand is that your equipment is headed towards end of life or was used and abused rather badly during that fast-track project a couple years ago. How do you prove to them what the value of your machinery really is? A dispute appraisal.

By starting out with a solid grasp of your equipment's value, a business dispute appraisal gives you the verified information you need to fight for your rights in any number of different situations. However, not every person who represents themselves as an appraiser can provide you with the solid calculations and tested methodologies you need to get the job done. Make sure that you only work with a professionally-certified appraiser who has experience in your industry as well as with valuation disputes.

Tags: Machinery Appraisal Business Dispute

Equitable division of assets and divorce appraisal of equipment

Posted by Equipment Appraisal Services on Fri, Feb 22, 2019 @ 08:00 AM

equipment_appraisal for divorce

For business owners, creating an equitable division of assets during a divorce means taking the value of existing equipment into account. Since divorces can be contentious matters, there are a few considerations to keep in mind when planning to get equipment appraised before a divorce. 

What to Expect in a Divorce Appraisal

During a divorce, couples must split all marital assets. Just as the couple will need to divide the house and the cars, a divorcing couple with a business must divide the company's assets.

Circumstances vary, but a general rule of thumb is that anything owned by one party before the marriage does not count as a marital asset, thus is exempt from being split. Any property, personal or business, acquired after the marriage counts as a marital asset and must be shared. So if one person owned a van before getting married, they maintain ownership of the van, but if the van was acquired as a company car after the wedding, its value must be split. 

In order to divide assets fairly, the couple must agree on their worth. While it's relatively easy to get a valuation of a van using Kelly Blue Book or the equivalent, it's not so easy to get the valuation of business assets. That's where an appraiser comes in: A qualified appraiser can examine the company's equipment and calculate value, so the couple can move on with the division of marital assets. 

After all of the equipment has been valued, lawyers can determine how to split all of the couple's assets equitably. In some cases, one party may want to buy the other party out of their share of business assets. Other times, the business owner may decide to sell off certain assets, then give the proceeds to their ex. A third option is to retain business assets and give the ex a greater share of personal assets. 

Divorce Appraisal Concerns 

Maintaining fairness can be difficult in a divorce, as emotions run high on both sides. Sometimes, one party can be tempted to hide assets as a way to punish their soon-to-be ex. Even when both sides are playing fair, the lower-earning spouse can worry about whether they are really receiving everything they're entitled to by law. For this reason an appraisal list, which lists all company equipment to be valued, can guide the process. Once both sides have agreed to the list, the appraisal can move ahead. It's key to select an appraiser who is experienced with divorce appraisals and taking equipment valuations. If things aren't valued correctly, then both sides are harmed.  

Once an appraiser has been chosen, they will value all equipment. An appraiser might take a market approach to equipment valuation, which examines recent sales prices of similar items. This approach is best for common items, since data is available.

The cost approach works well in the absence of recent sales data. In this valuation method, the appraiser determines how much it would cost to replace the equipment new, and then subtracts value lost due to depreciation or obsolescence. To accurately assess how much value the existing equipment has lost, the appraiser may need maintenance records, purchase receipts, and other data. 

Business owners or their spouses who are undergoing a divorce should identify an experienced appraiser early on, so there's a lead time in which the appraiser can get valuation. Our equipment appraisers can work with one spouse, both parties, and their attorneys to develop a divorce appraisal that is objective, so marital assets may be split equitably. 

Tags: Equipment Valuation in a Divorce Proceeding

Accurate Equipment Appraisals Help Move Material Handling Equipment

Posted by Equipment Appraisal Services on Mon, Feb 11, 2019 @ 08:00 AM

material handling

Manufacturers, construction companies, warehouses, distribution centers and many other businesses often rely on material handling equipment to manage the heaviest of loads. This equipment helps in the movement, storage, and control of a company’s goods and parts throughout the production and delivery cycles. It speeds up the entire process, reduces labor costs, and enables the safe transportation of items from one place to another.

Sometimes a business will need to sell or physically move the material handling equipment to another location due to a pending sale, consolidation, expansion, or other business transaction. This may require putting a fair value on the equipment for insurance, legal and possible tax purposes. That is when it is time to call in a material handling equipment appraiser who can provide an accurate, legally defensible estimate of the value of the equipment in accordance with the guidelines and Uniform Standards of Professional Appraisal Practice (USPAP). The different types of handling equipment can be classified into four major categories:

  • Transport Equipment: This equipment moves material from delivery to storage or a work area, between workplaces, and to the loading dock. This might include engineered or robotic storage and retrieval systems, heavy-duty equipment like conveyors, cranes, forklifts and industrial trucks, or manual equipment such as hand trucks, pallet jacks and dollies.
  • Positioning Equipment: This equipment manipulates materials in one location to make it easier for work to be completed on the item. Some examples would include hoists, tilt tables, balancers and industrial robots.
  • Unit Load Formation Equipment: This equipment helps to keep a load together in some manner for transport or storage. This type of equipment includes skids and pallets, cartons, bins and baskets, and crates.
  • Storage Equipment: This equipment is typically found in warehouse environments where materials are stored while they wait to be used in the production process or transported to another destination. Examples of this type of equipment include the various racks, frames, shelves, bins and drawers used to hold goods, stack loads, and provide easy access to parts.

To place an accurate value on the material handling equipment, the appraiser looks at several key factors such as its brand name, age, and adaptability for use in multiple industries. These elements must be balanced against the actual condition of the equipment to accurately determine how much potentially useful life remains in it. When arriving at a fair value, the appraiser might assess an older piece of equipment that has been well-maintained at the same amount as a newer piece of equipment that experienced heavy wear and tear. Accurate maintenance/ repair records and logs of environmental conditions can help tremendously in this phase of the appraisal.

The appraiser will also assess the likelihood of whether a potential buyer will be able to obtain necessary parts to repair the equipment down the road. Any additional features or upgrades might increase the appraisal value as well. In general, the appraiser is trying to determine how much benefit a potential buyer can expect so a dollar amount can be placed on the equipment.

A Certified Equipment Appraisal Report can safely be relied on by potential buyers, banks, lenders, accountants, and attorneys as an honest representation of what the material handling equipment is worth. This can help in making key decisions as to whether or not to invest in buying a particular piece of equipment. If your business is thinking about moving material handling equipment, look for the services of an accredited appraiser.

Tags: Appraising Material Handling Equipment

Concerned About Accuracy? Consider Appraisal Review Work!

Posted by Equipment Appraisal Services on Fri, Feb 01, 2019 @ 08:00 AM

appraisal review

 

 

 

Whether you're dealing with a potential court case, the sale of your company, a bad tax assessment or that loan that will allow you to significantly expand your operations, it's vital that you work with accurate numbers to ensure that the process goes smoothly with no unwelcome surprises. If you've been dealing with an appraiser and something doesn't seem quite right about their numbers, it may be time to think about getting a second opinion. In that case, you may want to look at having appraisal review work completed that allows you to ensure the accuracy of the final result. Here's a quick look at what appraisal review is, what it entails and what you can expect from the process.

 

Concerned About Accuracy? Consider Appraisal Review Work!

Let's start by talking about the reasons that appraisal reviews are performed. If an appraisal was performed by a company that is not certified, it's often easier to verify the existing work than to have an entire new appraisal performed. This allows a fresh set of eyes to check the figures, calculations and information used for accuracy, providing you with details on where it has worked out and where inaccuracies may lie. Another area where appraisal reviews are used is during the audit process. When a piece of equipment is valued at a particular amount that doesn't seem quite right, having an appraisal review performed allows you to see whether that original figure was accurate or if it needs to be revised.

Among the issues that may make you choose to have an appraisal review performed is having business property in a declining market, a comparison to a business that isn't as close a match as it should be or other aspects of your business that could potentially open you up to a risky financial situation. The appraisal review goes over all of the processes and figures used in the original appraisal, checking those figures and the calculations that were used with them for accuracy. During this time, the appraiser also keeps an eye out for omissions that may have accidentally occurred, such as failing to list an upgrade or an add-on kit for a piece of equipment that would drastically raise its value to potential purchasers.

An appraisal review may also be requested by a financial institution if it feels that the equipment being financed represents a specific potential risk to your business and its ability to repay financing. As an example, if you are purchasing used equipment and wish to finance it through your bank, you may need to provide an appraisal review to ensure the accuracy of the original appraisal prior to the loan being approved.

When you have appraisal review work performed on a previous appraisal, you can quickly determine where the issue with the original appraisal was or if there was in fact an issue at all. This can be a very handy tool for audits and similar work where verification of value is vital to the integrity of the final figures that are determined. However, that doesn't mean just anyone who knows a little bit about pricing is the way to go! You need a certified equipment appraisal specialist who understands the fine nuances of machinery value so that they are using standardized, tested methodologies that will provide you with the most accurate results.

Tags: Appraisal Review Work

What Happens When You Use an Appraiser as Expert Witness?

Posted by Equipment Appraisal Services on Fri, Jan 18, 2019 @ 02:02 PM

Appraiser as Expert Witness

There are few things you can face as a business owner as scary as facing a potential lawsuit or court case. It has the potential to end your business if it isn't handled correctly and can impact your livelihood for years, or even decades, to come. However, when your machinery is involved, nothing can change things as quickly as bringing in an equipment appraiser as expert witness in your case. It can quickly make the difference between successfully proving your claims and suffering from a devastating financial loss at your business. Here's a quick look at what happens when you decide to use an expert as a witness in your court case.

What Happens When You Use an Appraiser as Expert Witness?

  • Provides credibility. An expert witness is expected to have deep knowledge of a subject, something that a certified equipment appraiser has in spades. Their professional credentials provide proof of their knowledge while their expertise provides your side of the case with strong credibility with regards to the value and condition of your equipment. Their background and experience is weighed in to deliver a true level of expertise that will be difficult to impossible for the opposition to disprove or counter in the process.
  • Proves equipment values. When you work with a certified equipment appraiser, they're able to walk the court through the process of determining the value of machinery. The methodologies that they've been taught to use in the field have had decades of testing in a wide range of situations, including legal settings. This means that their calculation of your machinery values will hold up with other methods of determining value fall well short of the level of accuracy demanded by a court case.
  • Documents accurate condition. What condition was your equipment in during the time in question for the court case? It's not uncommon for one side or the other to inflate or deflate the value of equipment by making spurious accusations about the equipment's value or that it's being downplayed by the other side. Having a certified equipment appraiser represent your equipment's condition documents that condition and its relative value for the court with no emotional arguments, just solid, stated facts for the record.
  • Reduces the opposition's credibility. Is the other side making a lot of accusations and wild claims about your machinery, its condition and its value? Whatever your court case is about, it's expected that both sides will exaggerate or downplay certain aspects to improve their standing. Bringing in an expert witness to speak to the specifics of your equipment helps prove your credibility while reducing the credibility of the opposition's side of the argument, putting your business in a better light and position in the case.

When you choose to use an equipment appraiser as expert witness to provide testimony for your court case or lawsuit, you can better defend your position, especially if your company or equipment values have been blown out of proportion by the opposing side in the case. Using an equipment appraiser as a witness can help in any number of ways, but you'll want to make sure you work with a certified appraiser to ensure that the testimony they provide can be backed up by solid figures and methodologies.

Tags: Appraiser as Expert Witness

Why Does Your Business Need an Industrial Equipment Appraiser?

Posted by Equipment Appraisal Services on Wed, Dec 26, 2018 @ 01:29 PM

industrial-equipment-appraisal

Companies in many diverse forms of commerce such as construction, automotive manufacturing, tool and die fabrication, aerospace, and foundries often rely on the use of heavy-duty industrial equipment and freight vehicles to get the job done. Quite often during the course of ordinary business, an accurate accounting or estimation of the value of that equipment is required. That is when your company needs the services of a professional industrial equipment appraiser.

The need for an accurate equipment appraisal might be based on a business reason, or it could be required by a bank, lender, government entity, court, or accountant. At these times a simple book value or “guesstimate” of the equipment value simply will not do. An industrial equipment appraiser provides an accurate, legally defensible estimate of the value of equipment in accordance with the guidelines and Uniform Standards of Professional Appraisal Practice (USPAP). Here are just a few of the many reasons why your business might need the services of an industrial equipment appraiser:

  • Business is good: If you are thinking of merging, selling or expanding your business, you want to have a good handle on how much it is worth. A certified appraisal gives you leverage with potential buyers, and is often required by banks to justify collateral estimates if you decide to take out a loan to finance your strategic growth. Effective in January 2014, the Small Business Administration updated and clarified its Standard Operating Procedures regarding appraisals and valuations accepted for its Lender and Development Company Loan Programs.
  • Business is bad: Sometimes it happens that a business just doesn’t work out, and you need to have an appraisal performed for a partnership dissolution or bankruptcy filing.
  • Always be prepared: We never expect the worst-case scenario to happen, but we certainly need to be prepared. An industrial accident or natural disaster might occur which would require definitive proof of the equipment valuation for insurance reimbursement purposes. If you can’t prove what the equipment is worth, the insurance company might be left to its own best guesses and that seldom works in your favor.
  • Tax and accounting purposes: Quite often your accountant will request an equipment appraisal to back up tax return and depreciation schedule information. Also, businesses that are converting from a C to an S Corporation will require an up-to-date appraisal to verify the value of the company at the time of the conversion.
  • Shareholder accounting and Sarbanes-Oxley compliance: Public companies have an even higher degree of fiduciary responsibility to shareholders. They also have to be in compliance with the Corporate Responsibility Act of 2002, which was designed to improve financial disclosures from corporations. Provisions of this Act require increased corporate responsibility for financial statement accuracy and impose severe criminal penalties for non-compliance.
  • Personal needs: In certain companies, personal needs will sometimes overlap with business functions. If an owner or major shareholder is going through a divorce, setting up an estate, or creating a personal trust, an accurate accounting of the business assets and equipment will be required.
  • Lawsuits: Businesses that are splitting up, or those that are called to defend themselves in a court situation, will need to justify the stated value of the company.

An accredited appraiser takes many factors into consideration to arrive at an accurate equipment appraisal. The skills and experience of an unbiased industrial equipment appraiser will result in a Certified Appraisal Report that you can rely on with confidence to meet any individual reporting requirement.

Tags: industrial equipment appraisal

How is a heavy equipment appraiser different than a regular appraiser?

Posted by Equipment Appraisal Services on Wed, Dec 19, 2018 @ 12:02 PM

heavy-equipment-appraiser

When you're working with a heavy equipment appraiser, it's common to wonder what makes them stand apart from regular appraisers. Are they really that different from one of the other? You might be surprised at the answer. The level of education, experience and expertise that is used during the appraisal process by a heavy equipment valuation specialist can be truly astounding. Here's a quick look at some of the differences between a standard appraiser and a heavy equipment appraiser as well as some of the additional training that goes into the process of developing the specialty.

How is a heavy equipment appraiser different than a regular appraiser?

  • How specialized is your machinery? Though a lot of heavy equipment is similar to other models on the market, there are often any number of features and kits that set your equipment off from the rest of the pack. A regular appraiser will deal with a wide range of items, from cars to copy machines to computers. A heavy equipment appraisal specialist, on the other hand, focuses only on heavy machinery. Because they don't deal with all the rest of the equipment on the market, they're familiar with the many ways that your machinery is unique. This allows them to focus on the fact that you've got the hydraulics upgrade kit and optional backhoe for your loader and value them appropriately.
  • What condition is your machinery in? A regular appraiser have a grasp of the fact that it's pretty common for construction equipment to have a few scratches and dents in the course of its daily use, but are they able to recognize the difference between everyday wear and real abuse in the field? Because a heavy equipment valuator is constantly working with machinery that is active in the field, they have a strong grasp of what that equipment should look like and how it should act and react on the job site. This allows them to make an appropriate valuation because they know that your equipment is used, not abused, and they calculate the value of that machinery accordingly.
  • Are there any potential failures that can be prevented to save money and improve value? A regular appraiser doesn't know your heavy equipment as intimately as a heavy equipment specialist does. Because they work with only heavy equipment on a daily basis, they get to know that equipment, including its potential points of failure. They're familiar with many of the signs that key components that are common issues with a particular model are starting to fail, such as a pulley going slightly out of alignment, a hydraulic leak that doesn't seem like much now and similar areas of concern. This allows you to make inexpensive repairs on smaller systems before they crash the entire machine.

When you need to have heavy machinery valued and have the choice between a regular appraiser and a heavy equipment appraiser, understanding the differences between the two can mean hiring the right person for the job or ending up with a poor appraisal that doesn't take the intricacies of your equipment into account. Make sure that when you're having your equipment appraised that you insist on a certified equipment appraiser that has experience in your industry to ensure that you're getting your money's worth and an exceptional appraisal report for your investment.

Tags: heavy equipment appraisers