When conducting equipment appraisals, accuracy is everything. But even the most experienced appraiser can’t identify the history of a client’s assets without assistance. Having current, detailed information about each piece of machinery is critical, and often that information lies with the client. That’s why strong communication and collaboration between the appraiser and the client are essential.
Even minor details can affect value. Factors such as make, model, serial number, year of manufacture, effective age, and hours/mileage all play a role in estimating the fair market and liquidation value of equipment. Missing or vague information can lead to too many assumptions, potentially resulting in inaccurate values.
Appraisers bring valuation expertise to the table, but clients will have the best access to documentation and equipment history. A collaborative relationship provides the ability to obtain important facts, such as clarification on specific asset descriptions, condition verification, and access to key documentation from both an accounting and operational perspective.
Communicating with the client early in the process and making it clear that complete and accurate asset details will improve the appraisal outcome. Consider providing a user-friendly template spreadsheet or checklist that can streamline data gathering for the client.
Encourage clients to reach out with questions as they collect information and continue to follow up on a regular basis until you, as the appraiser, have enough information to move the process forward into an analysis stage.
Whether completing an appraisal on a desktop basis or with an on-site field visit, there will always be a need for active and ongoing communications that will clarify the purchase and usage history of the machinery & equipment, especially when there is some customization involved. Even when the asset appears to be straightforward, it is important to understand the specific build that the client ordered.
Reliable equipment valuations are built on a foundation of partnership. When appraisers and clients work together to gather and verify asset details, the result is a more reliable and defensible set of conclusions and deliverable report. Collaboration strengthens the appraisal while building trust and creating efficiencies that can lead to a lasting relationship and future engagements.