When you're considering having a machinery valuation done, have you ever considered what makes a certified equipment appraiser qualified to determine the value of your equipment? It's a bit of a process, but we thought we'd share what our appraisers go through before they're considered ready to look at your machinery and come up with a solid value that will hold up under strong scrutiny. Here's what's involved in becoming a certified machinery appraiser.

What's involved in the process of becoming a certified equipment appraiser?

There are several different appraisal associations, each of which often has their own appraiser certification process. The ASA focuses on pure appraisal science and is the premier appraisal society in the US. The ASA accreditation is one that lenders and attorneys look for as the bar is high to obtain compared to some of the others.

Almost every certification process entails a combination of education and experience. To become certified, an appraiser needs to have a certain amount of time in training, whether in a curriculum of specific courses or a range of continuing education classes to make up their education. Methodologies need to be standardized based on historical performance to ensure that they hold up well to strong scrutiny, whether that's in a court of law, a tax agency, a financial institution or an insurance claim. 

Experience is typically developed under a senior appraiser who can show a new appraiser how to approach the valuation process and some of the variables they may encounter in the field. This experience typically lasts several years, providing the appraiser with the opportunity to pick up experience with a wide range of machinery, exposing them to a number of different aspects of the process. This will also give them the opportunity to see how valuation works in practice, depending on the specific need for the appraisal and why it's needed.

Once the candidate has acquired the necessary education and experience to complete their program's requirements, they'll need to pass an in-depth exam that provides the association with a solid idea of the candidate's abilities. This may include a range of question types, from basic multiple choice or answer-selection formats to requirements to explain in detail how to appraise a specific item and why the appraiser came up with that specific value in that particular situation. Once they've passed the test, they're able to receive their certification and begin practice as a certified equipment appraisal specialist.

Now that you know what's involved in the process of becoming a certified equipment appraiser, you'll have a better grasp of what your appraiser has gone through to be able to provide you or your business with a solid idea of what your equipment is currently worth. The methodologies used in developing a certified appraisal report provides you with a solid basis for value, whether you need the appraisal for a sale, insurance, legal purposes, taxes or financing for your company.

After you've been in business a bit, you may have heard the term machinery valuation tossed about on occasion. If you've wondered what it's all about and why you might want to consider getting one on your own business, you're not alone. Here's a quick look at what exactly an equipment appraisal is and the many benefits it can bring to your company.

What exactly is machinery valuation and how does it benefit your business?

Most people have been through or are somewhat familiar with the process of having a home appraised or a vehicle valued when considering selling it or trading it in. Someone who seems to maybe know what they're doing will look it over, hem and haw and finally tell you what it's worth. This process tends to be a good bit more reliable in real estate than cars or trucks, but either process can be up to some level of interpretation. 

Now imagine this process but with machinery. You may be dealing with an equipment dealer, but much like the process of trading in a car, you'll often end up getting the value they want you to get - high if they need sales or low if they don't want to deal with selling your used equipment. Fortunately, there's a much better way to have your equipment assets appraised - by using a certified equipment appraiser.

When equipment appraisers work through the process, they are an independent third party. They don't have any reason to push for you to trade now or keep your current equipment. They simply analyze what is. Instead of worrying about what their commission will be, they can get into the nuts and bolts of your equipment, the industry and what it's actually worth. They use this information to create an equipment valuation report that provides you with a number of benefits:

• The appraisal itself tells you something about the condition of the machinery. Is there a particular part that you missed a recall on? Perhaps there's some wear that isn't that interesting in and of itself, but it could point to wear and failures elsewhere in the machine that could lead to expensive repairs.
• Because appraisers are familiar with your industry, they may know that though the region you're located in is currently in a slump, the market in another area may still be rather hot. They may even have some connections there, giving you the opportunity to make a profit off of machinery that would otherwise sit around or lose value.
• Certified appraisers use tested methodologies to calculate the value of your equipment. Because these methodologies have been around for a long time, they've been tested in court, tax agencies, financial institutions and insurance companies. That means they stand up to strong scrutiny, allowing you to save time when dealing with these organizations.

Now that you know what a machinery valuation is and the many benefits of having one performed on your equipment assets, it's time to act. By having an equipment appraisal performed on your assets now, you can help avoid a lot of hassles no matter what life throws your way. Make sure you work with a certified equipment appraiser to ensure that they're familiar with the many factors that can come into play when you have your machinery appraised.

When you receive a bad property tax assessment, how do you fight it? The best way to win when you're dealing with oil & gas equipment property tax appeals is by knowing what's involved in the process and the best steps to take to get through the process as quickly and effectively as possible. Here's a quick look at what's involved in a property tax appeal and the steps to take to win your appeal without a lot of extra work.

What's involved and how do you win in oil & gas equipment property tax appeals?

Though getting a bad property tax assessment is a terribly unpleasant surprise, you do have options available to fight the assessment. Virtually every tax agency includes an appeal process. Many businesses have been through the process and come out well on the other end, but only by knowing how the process works.

To start, look at the documentation that was provided by the tax agency in question. It should include information about your rights and where to look to learn about the process. Start with that information to determine what your available timeline will be through the process. The information will also tell you what your rights are.

The process may also require that the assessor follow certain procedures, such as the use of a standardized valuation guide and that the tax codes for that agency be applied uniformly to all taxpayers. Do you have the ability to request the documentation of how your equipment was assessed? Can you request other records from the tax agency's office? By knowing what your rights are, you can better defend them.

The next step is to prove the actual value of your equipment. The best way is through an equipment valuation. The value in your depreciation schedule may not reflect equipment that has been heavily used. If you depend on your equipment dealer, you'll get the value they think you're looking for. There are any number of other ways to come up with a value for your equipment, but it's not necessarily going to be an accurate value.

When an equipment appraisal is performed, it looks at what the equipment's value actually is. They look at the overall condition of the equipment, providing you with not only the value based on those aspects, but also prospective issues that need to be handled and the expected overall lifespan. They take into account the current market conditions, whether a hot market is raising the value of your equipment or a slow one is lowering it. They can provide you with the most accurate value that will hold up well in tax appeals.

Getting a bad property tax assessment is stressful, but knowing what's involved in fighting it so that you can win oil & gas equipment property tax appeals makes it much easier to get through the entire process successfully. If you decide to get an appraisal of your machinery, make sure that you work with a certified equipment appraiser. The certification process uses standardized methodologies that have been tested countless times in legal, financial, insurance and tax circles, ensuring that they'll hold up against strong scrutiny. Ask whether the appraiser you're hiring has been through the certification process.

When you have used machinery, how do you figure out what it's worth? You have a few different options available, but only one really solid one. Used equipment values can vary widely, with a number of different sources, but how do you make sure that your equipment value is as accurate as possible? Here's a quick look at different ways you can have your equipment valued, along with the benefits and drawbacks of each method.

How do you accurately determine used equipment values?

So what are the different ways you can have your equipment valued? You could take a good look through online or live auctions, classified ads, magazines or similar markets to see if you could find the same or similar equipment. You could talk to your local dealer and find out how much they would give you for the equipment on trade. You could pay to an equipment appraiser to determine the value of your equipment. Though each of these approaches would give you a value for your equipment, only one of these would be accurate.

Equipment that is being offered for sale is priced based on how quickly the seller wants to move the equipment. If they're going for a quick sale, they may try to low ball the price or put on a fast paint job to hide years of abuse. If they're really not that enthused about trying to get rid of the equipment, they may price it high so that they're only getting rid of it for the price they want.

A dealer may offer you a price based on whether they need to sell new equipment or want to deal with the hassle of trading in used equipment. If they need to make a sale to improve their commissions for the month, they may offer you a much higher value than your equipment is really worth. If, on the other hand, they have a decent paycheck coming up and don't want to deal with the hassle of handling your used equipment, they may offer you significantly lower than it's actually worth.

Though you need to pay for an equipment appraisal, it actually provides you with the most value. An equipment appraiser deals with similar machinery every day can tell what kind of condition your machinery is in, and may even be able to recommend repairs to help improve the value. They take into account your industry's current condition, helping you determine whether you should sell your equipment outside of your region due to a localized slump. The valuation report they produce uses standardized methodologies to determine the value of your machinery, which means it will stand up well to very strong scrutiny if you're getting a loan or facing an insurance loss, incorrect tax assessment or a lawsuit.

Though there are a number of different ways you can calculate used equipment values, getting the accuracy you need for most purposes can only be found when you work with a certified equipment appraiser. Because of their level of training, expertise and experience, certified appraisers are able to calculate values and produce valuation reports that stand up well to the strongest of scrutiny, including legal, financial, insurance and tax agency circles. Working with a certified appraiser is the best way to ensure you're getting your money's worth out of your equipment valuation.

When you're buying a business or a large lot of equipment, it can be difficult to determine how to allocate value across the assets. How do you determine how much of the value you've paid for the equipment should go to each piece of machinery? One of the easiest ways to make this work is through an equipment appraisal for asset allocation, which uses the values from the appraisal report created by a certified equipment appraiser to determine the overall value and how it should be spread across a number of different pieces of machinery.

How to use an equipment appraisal for asset allocation

Let's take a look at a possible scenario that is fairly common when a large lot of mixed equipment is purchased. A business needs to expand quickly and so buys out a bunch of equipment from a competitor. Though the equipment is worth a particular amount as a lot, it's hard to determine the value of each type of equipment, never mind each piece. How do you divide the cost of all the equipment up among the different pieces of machinery in a fair, equitable fashion?

One of the easiest ways to determine how to allocate asset value is by having an equipment appraisal performed. When an overall valuation is performed, the valuation specialist looks at all the equipment you've purchased, which allows them to pick out differences between not only different types of machinery, but also individual pieces of equipment within that model. They can tell you when a particular piece of machinery has a lower value because it has damage or excessive wear. They're able to mention when a particular part of a lot has a higher value because it has an optional feature that wasn't included in the other machinery.

Once the appraiser has had the opportunity to review and examine all the machinery, they can create an overall report that sums up the total value as well as the individual value of each piece of machinery. A certified equipment appraiser used a series of standardized methodologies to calculate the exact value of the machinery. The certification process ensures that a certified appraiser has the knowledge, experience and expertise to determine the machinery's value accurately.

An equipment appraiser deals with nothing but machinery all day, allowing them to see how one piece of machinery compares to another. This gives them a unique insight to see every possible item that may affect its value, whether it's a stain from liquid that indicates a leak or drip, a bit of metal scraped free of paint that indicates a pulley out of alignment or a slightly different sheen to the paint that indicates repaired damage. Any of these signs can show you where any number of issues can come into play in the future use of your equipment, allowing you to make repairs as needed.

The process of allocating assets in your business can seem like a complicated process, but using an equipment appraisal for asset allocation provides you with a fair value for your equipment, making the process go much more easily. It also provides you with a background value for your machinery, providing you with a solid proof of value should you suffer any losses for your insurance company or need to prove the value of the machinery for legal, financial or tax purposes.