When you need to have an appraisal performed on your equipment, it's important that it be performed by a valuation specialist who has the proper credentials. One of the largest accreditation organizations for appraisal practices is the American Society of Appraisers. But what is it, why is it important to use a certified appraiser and what difference can it have on your equipment appraisal? Here's a quick rundown to help get you started.
What is the American Society of Appraisers and how will it impact your appraisal?
The ASA grew out of two organizations formed in the 1930s, the American Society of Technical Appraisers and the Technical Valuation Society. Incorporated in 1952, the ASA was formed to create an over-arching professional association of appraisers, regardless of their specialty. Through the decades, the ASA has worked hard to develop professional standards and practices for appraisal practice to bring regularity to the industry. It has focused on refining appraisal practice to the point that the methodologies that they have developed will hold up well to strong scrutiny in many situations, including legal, financial, insurance and tax agency circles. The organization has also developed sub-levels of its certification process to cover a wide range of appraisal practice, such as business valuation, gemstone and jewelry appraisal, real property, personal property and machinery & technical specifications.
The thorough certification process that the ASA has developed teaches new appraisers how to use those tested methodologies and in which situations they should be applied to find the most appropriate value for your equipment. The process of becoming an ASA-certified appraiser involves an in-depth combination of acceptable classes or education and professional appraisal experience. This specific combination ensures that anyone who has received an ASA certified designation has both the knowledge as well as the real-world experience to reasonably put their training into practice.
By having your appraisal performed by an ASA-certified appraiser, you can ensure that your valuation report will hold up to strong scrutiny in a wide range of circumstances. Did you know that in a few particular circumstances, the law requires a specific type of valuation to be performed? Did you know that you can have machinery valued even after it has been damaged in a fire or donated to a charity? What about determining the value of a piece of machinery some amount of time in the past for a court case or similar back-dated valuation? Because of the experience and knowledge gained in the certification process, a certified appraiser knows exactly what type of appraisal needs to be performed, can easily deal with situations such as these and is still able to develop a high-quality appraisal report that will help support your machinery's value to a number of different parties.
Having an appraisal completed on your equipment by an appraiser who is certified by the American Society of Appraisers is an excellent way to get a quality valuation. A machinery appraisal provides you with documentation of your equipment values, but if it isn't performed properly, it won't hold up to strong scrutiny. At that point, you've thrown your money away on an appraisal that doesn't do you any good. To get the best value for your dollar, make sure that your appraiser is certified by the American Society of Appraisers or a similar appraisal certification organization.