When you work with a machinery and equipment appraisal company, what will the equipment appraiser look at during the material handling equipment appraisal process? From the tread on the tires to the demand in the market, there are a wide number of factors that play into the final equipment values that are reported. Here are some of the areas that a machine appraiser looks at while conducting a material handling equipment auction:
Areas Considered in a Material Handling Equipment Appraisal
- How old is the equipment? Though you might consider that to be a primary concern when you're having a machine appraisal performed, there are actually a lot of other factors that often weigh more heavily into the machinery appraisal than age. A machine only a couple years old that has ben abused or ill-maintained may command a much lower valuation than a ten-year-old machine that has been well maintained and has a variety of features that work well.
- Is the equipment manufactured by a well known or unknown company? It's much easier for a repair to be made to a piece of material handling equipment that is from a major manufacturer with readily-available parts compared to an imported knock-off that requires speaking a second language to deal with their parts department or the chance that said parts will clear foreign customs. This is reflected in how much people are willing to pay for a piece of machinery.
- What is the condition of the equipment in terms of maintenance and repair? If a machine hasn't been well cared for, it will have more problems in terms of repairs and a shorter lifespan, which is reflected in its appraisal value. Keeping a log of repairs and maintenance on each machine helps show that due diligence has been used in keeping the machinery in the best possible condition.
- How does the equipment compares to similar equipment in terms of wear and abuse? Beyond simple repairs and maintenance, this speaks to whether dust or debris has gotten into the machinery, causing higher levels of wear than would normally be seen in a similar machine. Other signs may include scrapes, dents or sloppy repairs that may not hold up or compromises the machine's safety features..
- What features does the equipment have? Much like an upgraded car, a piece of machinery that has good quality features that build value into the machine and helps save time, materials and effort will fetch a better price on the market, which is reflected in the final equipment valuation report you receive. A machine with only the basic features or poor-quality features that are broken or don't perform as planned will usually fetch a lower valuation.
- What is the purpose of the appraisal? Appraisals can look at many different situations, from the sale of a company to the simple sale of assets during a bankruptcy. Knowing what the purpose is helps the appraiser understand what type of qualities need to be studied during the appraisal.
But this information doesn't apply only to having equipment appraisals performed, it can also be used when selecting equipment that is more likely to hold its value in the future. If you're still looking for equipment appraisers to provide a material handling equipment appraisal for your company, please contact us. Our appraisers are accredited through the American Society of Appraisers.