Equipment Appraisal Blog | Understanding Machinery Appraisals

How does a machine appraiser determine remaining useful life?

Posted by Equipment Appraisal Services on Tue, Feb 06, 2018 @ 08:44 AM

remaining useful life of equipment.jpg

As a business, your investment in your equipment is a large part of your overall assets. Knowing how long that equipment will continue to operate is an important piece of information to help you plan your company's future expenditures. But the remaining useful life can be hard to determine. Fortunately, there's a way to get around the difficulty in determining this expected lifespan. Machine appraisers spend all day looking at and appraising equipment, so they not only have experience in how to calculate the estimated remaining lifespan but also know how to recognize signs that may extend or shorten machine lifespan. Here's a quick look at the overall process and what aspects may impact your equipment's estimated remaining life.

How does a machine appraiser determine remaining useful life?

Machines, like people, can age at different rates. Imagine a two-pack-a-day smoker with bad genetics who has done heavy construction and drinks a six pack every evening, before taking a ride down into some scary parts of town while never going to the doctor. If this individual made it past 50, it would be a miracle. The health guru with perfect genetics, a stress-free life and a love for fitness who regularly has health screenings may expect to live past the century mark at this point. Much like people who do or don't take care of themselves, machines can fail at different rates.

One area that can quickly impact machine lifespan is the environment in which it is used. Much like the smoker, a piece of equipment that is kept in a damp, dirty environment with extreme temperatures will tend to degrade much faster than one kept in a clean, dry environment with regulated temperatures. The bad genetics would represent the expected overall lifespan of a specific model of equipment, such as a model known for issues that will not last as long as similar models because of poor manufacturing, materials or mechanical problems. At the same time, the heavy construction background represents hard use of the machine. Equipment that has been used at the very top of its range of specifications, received hard use in a short period of time or otherwise abused will have a much shorter lifespan than may otherwise be expected.

When an equipment appraiser looks at a piece of machinery, there are a number of clues they can take into account. In addition to already knowing a rough range of estimated overall lifespan, the appraiser can look at the exterior for signs of abuse, including dents, bends or evidence of poorly-made repairs to determine any excessive use the equipment may have received. A look at internal components may reveal failing mechanisms that could cause a serious failure down the road. Checking out the environment may lead to details about whether a fresh coat of paint may stop corrosion or if the rust may cause a premature failure.

The process of estimating remaining useful life can be a daunting task, but with an equipment appraiser taking over the process, you'll quickly have the information you need for your business planning purposes. Be sure to check whether your equipment appraiser is certified, as the methodologies used by certified equipment appraisers have stood up to strong scrutiny in a wide range of situations. This means the remaining equipment lifespan they estimate for you is much more likely to be a good tool for your business planning needs.

Tags: equipment appraiser, remaining useful life

Update Your Practice with a Medical Equipment Appraisal

Posted by Equipment Appraisal Services on Tue, Dec 20, 2016 @ 01:00 PM


When you work in health care, it can seem as though every week brings a new piece of equipment to your attention. Whether it's a new diagnostic tool, new therapy machine or something specific to your specialty, there's one thing that is almost always true: it's too expensive. But what if you could leverage the value of your older medical equipment against that total? As new technology is adopted, there's a limited window of opportunity between the time that the new equipment hits the market and the older technology becomes obsolete. How do you know when it's the perfect time to act and get the most from your older equipment while not paying the inflated cost of the latest and greatest? Medical equipment appraisal.

Update your practice with a medical equipment appraisal

When you talk to a medical equipment company, they may tell you that your equipment isn't worth much and that you need to upgrade immediately to take advantage of new technology. However, look at it from their point of view. They want to sell you new equipment and move your old equipment as quickly as possible. Without even looking that closely at what features your equipment may have or kits that have been added to the system, they're going to give you a low ball price on your old equipment to get it out of the way for the new equipment they want to sell you.

An independent machine appraisal specialist, on the other hand, has nothing to gain from the sale or purchase of equipment in your business. They don't have a commission riding on the final price. Their job is to take a good hard look at your equipment and use a solid methodology to determine your equipment values. They may even know about alternative markets where you could get better money for your equipment than the local businesses, such as going through the export process to sell older equipment to overseas buyers who will pay a premium to get good used equipment that's actually from this century.

There's one other thing that a professional machine appraiser will look at as well. Where is the equipment located? Though it's pretty easy for someone to say what the machine is worth, they may not take into consideration that moving it will require taking out that new partition wall because the other doorways in the practice are too small for it to pass through. In any situation, a qualified appraiser will mention these potential issues.

As you can see, getting a quality medical equipment appraisal helps ensure that you can get the most out of your older machinery while ensuring you can afford the cost to adopt new technology in your office. But before you go with just anyone, make sure the equipment appraiser is certified. Why? Certified equipment appraisers have been trained in standardized methodologies that will hold up to strong scrutiny, whether it's with an insurance company, financial firm or even in a court of law.

Tags: equipment appraiser, medical equipment appraisal

How a Restaurant Equipment Appraisal Lets You Turn Up the Heat

Posted by Equipment Appraisal Services on Tue, Sep 27, 2016 @ 02:30 PM


When you're in the restaurant business, change is inevitable. You'll need to change suppliers, update your menu and constantly train staff. But what about the big changes, when you're considering expanding your location or offerings, adding a new location or changing the direction and focus of your restaurant entirely? Though a restaurant equipment appraisal may seem like a strange way to manage the risk of these potential opportunities, it can actually be a great benefit - heres how:

How a restaurant equipment appraisal helps you manage risk in new ventures

  • Know your bottom line. One of the first places where restaurant machine appraisal comes into play is to help you determine the risk in taking a new venture or opportunity. A bit part of the decision is comparing your assets against your liabilities. But if your assets aren't accurately valued, you don't really know what that figure should be. Are your assets undervalued because they have additional features or are exceptionally well maintained? Are they overvalued because they need repairs or have seen excessive wear and tear? Having restaurant equipment appraisals completed helps you know exactly what your equipment, and by extension your asset accounts, are actually worth. This helps you make decisions to change your restaurant, expand it or open new locations based on accurate information and an accurate view of the risks involved.
  • Leverage your assets to help with business changes. Because a well-qualified and certified appraiser will have a particular methodology that he or she follows to determine the accurate value of your restaurant equipment, it provides legal documentation of those values. When you approach your financial institution about getting financing for your business' planned changes, having an equipment appraisal from a certified appraiser ensures them that you've done your homework and are taking the expansion - and their investment in it - seriously.
  • Consider whether the equipment will be an asset in a different direction. If you're making a large change in the direction or theme of your restaurant, some of the equipment will still be helpful while others may be put to better use somewhere else, allowing you to raise more capital to invest in your new venture. If you've run a buffet in the past and are changing over to a more traditional style of restaurant, steam tables and similar fixtures can be sold to invest in new furnishings and similar investments that will help you make the most of your new opportunity.
  • Get a better idea of how long the equipment will function effectively and efficiently. Because equipment valuation specialists look at restaurant equipment all the time, they have a good idea of how many more years you'll get out of the mixer you've purchased for your bakery expansion on your country cooking restaurant or the industrial-sized gas wok in your new Mongolian BBQ establishment. This also helps you decide which equipment to keep for your new venture and which to replace in the interest of keeping things running smoothly.

By having a restaurant equipment appraisal performed on your restaurant machinery, you can ensure that you know exactly where you stand and have the proof to back up your new venture.

Tags: equipment appraiser, restaurant equipment appraisal

How a Woodworking Equipment Appraisal Helps You Leverage Your Assets

Posted by Equipment Appraisal Services on Tue, Jul 19, 2016 @ 02:00 PM


When you have a shop full of prime lumber and fine equipment to turn it into a piece of fine craftsmanship, equipment values may be the furthest thing from your mind. But what about when you move from being a hobbyist to a professional and need to get a loan to open your business' doors or purchase more advanced equipment? How do you prove the value of your equipment if it needs to be used for collateral? Unlike vehicles, there's not a handy guide to valuing shop machinery. A woodworking equipment appraisal performed on your equipment is a great way to fill the gap. Here's how it helps you make the most of your assets:

How a Woodworking Equipment Appraisal Helps You Leverage Your Assets

Equipment appraisals provide a better picture of the value of your machinery. Though you may have seen a similar piece of equipment go for a particular amount at a local auction, that may not dictate the actual value. The auctioned equipment may have been of better or lower quality than your machine to begin with. It could have been neglected in maintenance and repairs, which would be reflected in a shorter expected useful lifespan or lower appraised value. The wrong buyers could have been at the auction, resulting in a lower than usual ending bid or a bidding war between a pair of bidders with a sentimental attachment to the machinery. There are many factors that come into play that can affect the value.

Are you basing the value on a tax depreciation table? If you haven't been using the equipment full time or if the machinery is expected to have a longer expected useful lifespan than the depreciation table accounts for, the machinery will often last for quite a while after its depreciated value has reached zero. If you then use the tax documents to verify value, the financial institution you want to work with may decide you don't have sufficient collateral to receive the loan, which can have a serious impact on your business' growth and future performance.

What about when you have an opportunity but aren't sure if the risk is worth it? If your machinery is being heavily used or goes without necessary maintenance or repairs, you may lose your business over the investment. Why? If you are basing the equipment off the value of a depreciation table or used sale price, the actual value may not provide a sufficient cushion from the investment risk. If you make the investment and then need a loan to cover expenses while the investment is being paid off, your financial institution may not agree with your value figures, preventing you from receiving much-needed cash and resulting in a cash flow issue. If your equipment becomes unusable and must be replaced before the investment has paid for itself, that additional expense could also sink your business. Having a quality valuation of your woodworking machinery helps ensure you're basing your decision on solid values.

When you have a solid idea of what your machinery is worth, it's much easier to use those assets to pursue your future plans. A woodworking equipment appraisal is a great tool in that planning.

Tags: woodworking equipment appraisal, equipment appraiser

Know Your Equity: Office Equipment Appraisal

Posted by Equipment Appraisal Services on Tue, Jan 12, 2016 @ 10:30 AM


When it comes to office equipment, most office workers will tell you that it has three phases: working, not working and kind of working. But the truth of the matter is that knowing the office equipment values can help you decide when it's time to retire older equipment in favor of newer models, because it's easier to tell how the equipment impacts your company's assets and equity. Here are some things to consider when looking at an office equipment appraisal:

Office Equipment Appraisal and Your Equity

  • One method many business owners use to determine if it's time to get new equipment is the point where the cost for repairs needed to keep the older machinery operational exceeds the cost to pay for new equipment. Unfortunately, by this point your business will have lost most of the equity in the equipment because if you're not willing to pay for additional repairs, people purchasing the equipment will not be willing to pay a pay the additional costs either.
  • The first area to consider when your business is considering keeping and repairing old equipment versus purchasing new equipment is what the equipment value is right now. Having a quality machinery and equipment appraisal performed helps you determine the starting point in your decision-making process and helps you support your decision with a standardized logical methodology.
  • Once your equipment appraiser provides you with a solid machinery valuation, the next thing to consider is how much longer you can expect the equipment to run reasonably and whether the loss of equity from depreciation over the remaining life is worth waiting to replace the equipment. An office equipment appraisal can also include an estimated remaining useful life calculation, which should help in this situation.
  • On the opposite side of that argument, consider whether you're replacing the equipment too quickly and are costing yourself working capital. As an example, if you purchase a new car and drive it off the lot, it immediately loses value. Purchasing a new piece of equipment just to sell it a few months down the road can quickly deplete your equity. You'll want to wait until you can get you money's worth out of selling the used equipment if at all possible.
  • Another option is to consider what you can get out of your existing office equipment. If the machine appraiser comes up with a value that makes it worth replacing the machine, that means part of your office upgrades are paid for from the sale of the older equipment. This can help make a great selling point for an upgrade when budgets are being strictly controlled and monitored.
  • An additional consideration to bear in mind is whether the new equipment will have features that are not available on the existing equipment that will make your business more productive or will help it keep up with the competition.

By knowing your office machine appraisal value, you're getting a much better idea of where you stand in terms of office performance, continuing costs and equity in assets. Because office machinery is so vital to your business' productivity and continued success, having quality equipment appraisals performed helps you make smart business decisions. If you need to have your office equipment appraised by one of our highly-trained, certified equipment appraisers, please contact us today. At Equipment Appraisal Services, we're always happy to help your business be everything it possibly can be.

Tags: equipment appraiser, office equipment appraisal

How a Medical Equipment Appraisal Protects Your Practice

Posted by Equipment Appraisal Services on Tue, Dec 08, 2015 @ 09:30 AM


When you're running a medical office, your equipment can be your biggest investment in terms of assets. But are you protecting those assets? If your business suffered a loss, would your insurance be sufficient to cover the cost of replacing that equipment Let's take a look at how having a medical equipment appraisal performed helps protect your business' bottom line.

Document the Original Equipment Values

A machinery and equipment appraisal provides more than just a dollar figure for your equipment, it documents the current value of your machinery. A machine appraiser provides legal documentation that holds up in legal, insurance and financial circles, provided that you're using a certified equipment appraiser to perform the equipment appraisals. It also gives you an idea of replacement cost and the expected remaining life of your machinery, making it much easier to plan for expensive replacements instead of being caught completely unaware when something breaks down.

Ensure You Have Sufficient Insurance

A medical equipment appraisal also helps you get a better idea of how well your assets are covered in case of a loss. If you're using the original purchase prices to determine the levels of your insurance coverage, you may be paying too much for your insurance because it's over insured. If, on the other hand, you're using depreciation values off your last tax return, you may be underestimating your machine's value in your insurance policy because the functional machine will still cost money to replace with a comparable machine. Knowing the value of your machinery through a report from qualified and certified equipment appraisers helps ensure you have the proper level of protection when it's needed most.

Provide Accurate Depreciation Equipment Value

Another area where a medical equipment appraisal can come in handy is to determine the appropriate level of depreciation when you're developing financial reports or need documentation for tax purposes. Because a machinery valuation provides legal documentation for your equipment's value, it can be used when machinery is depreciating faster, slower or at an uneven rate than the average straight line depreciation schedule. It also provides the equipment value beyond the point that it has been completely depreciated, documenting the existing asset value after depreciation is complete.

Gives You an Accurate Picture of Your Practice's Financial Standing

These areas all tie together in a machine appraisal that helps give you an accurate picture of where your firm really stands financially. Instead of making an investment that could be risky or having problems getting a loan because your equipment is fully depreciated, a medical equipment appraisal helps provide a solid picture of your financial state, allowing you to make much better business decisions that grow your practice instead of putting it at risk.

Have you had a medical equipment appraisal performed recently on your practice's equipment? If you haven't, maybe it's time to consider taking that step. At Equipment Appraisal Service, our highly-qualified, certified equipment appraisers are ready to help meet your appraisal needs. Please contact us with any questions, to get more information or to schedule your medical office equipment appraisal.

Tags: equipment appraiser, medical equipment appraisal

What Areas are Considered in a Material Handling Equipment Appraisal

Posted by Equipment Appraisal Services on Tue, Nov 24, 2015 @ 10:00 AM


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.

Tags: equipment appraiser, machine appraisal, material handling equipment appraisal

What to Look for in a Manufacturing Equipment Appraisal

Posted by Equipment Appraisal Services on Thu, Nov 12, 2015 @ 10:30 AM


When you need an appraiser for a piece of manufacturing equipment, it is important that you hire the right equipment appraiser -- a person who is uniquely qualified to appraise the piece of equipment you have. Yet, how exactly do you go about finding the right person for your manufacturing equipment appraisal, especially if you have a tight deadline? Learn our tips for selecting a qualified equipment appraiser to pick the right person for your present need. 

Finding a Qualified Machine Appraiser: What to Look For

An appraiser performing equipment valuation can have a lasting impact on the value of your business assets, so it is vital that you pick the right person for the job. Here are several criteria we recommend using when selecting a manufacturing equipment appraiser

  • Certified - To protect yourself and get an accurate machinery valuation, look for an appraiser who is certified by one of the major industry associations, such as the American Society of Appraisers, and holds a specialty in machinery and technical equipment appraisals. Since appraisers come to the field from different backgrounds, they may have different work histories and educations. As long as they have a professional certification, they are independently certified to have the right experience for the job and you can hire them with confidence. 
  • Independent - In some cases, you may be getting a piece of equipment appraised to satisfy someone else. Perhaps your company is merging with another, or you are getting something appraised for insurance purposes. In these cases, there is another party who has a vested interest in the equipment's value and who could stand to benefit from a lower appraised value. For this reason, we recommend hiring an independent equipment appraiser instead of someone who has a tie to the parent company or insurance company. At Equipment Appraisal Services, we offer independent machinery appraisals to individuals and companies. 
  • Knowledgeable - Machine appraisers specialize in different niches and industries. One might be an expert in car manufacturing equipment, while another might be a scientific equipment appraiser, and another a farm machinery appraiser. You wouldn't take a tractor to an appraiser who regularly appraises scientific equipment; that individual would not have the degree of knowledge necessary to accurately value your equipment. Before you hire any appraiser, make sure they know your niche. 
  • Personable - Finally, you will need to discuss the appraisal with your appraiser so you understand the equipment value of your machinery and can act accordingly. For this reason, we recommend hiring an appraiser that you have a personal connection with, and who possesses all the criteria listed above. 
  • Fits Your Budget and Time Frame - In many cases, you have a time constraint and a budget for your machine appraisal. A qualified appraiser should be able to quote you a cost for the equipment appraisal and estimate a time frame of when they can complete the appraisal for you. To reduce your stress and ensure the best possible outcome, it is important to ensure that any appraiser will be able to meet both your budget and your time frame before you begin. 

Before you hire an appraiser to generate equipment values, ask them several questions either in person or over the phone to gain an understanding of their qualifications for your needs. Then hire someone with whom you feel comfortable and confident proceeding. Have you ever had to hire equipment appraisers? What criteria did you use to make your choice? 

Tags: equipment values, equipment appraiser, manufacturing equipment appraisal

When Could a Laboratory Equipment Appraisal be Needed?

Posted by Equipment Appraisal Services on Thu, Oct 29, 2015 @ 02:30 PM


There are many types of labs which form an integral component of the manufacturing, research, and business world. Some are looking for new ideas or testing possible advances, while others are used to search for diseases or verify production processes. Whatever the purpose, these labs are all equipped with a variety of specialty equipment such as analytical instruments, glassware, microscopes, optics and photonics equipment, a mass spectrometer, centrifuges, and more. A laboratory equipment appraisal is often required to place a fair market or insurance value on these assets. Some of the many situations where these equipment appraisals might be needed include:

  • Asset sale: According to the Global General Laboratory Equipment Market Report 2014-2018, the market is expected to grow at a compound annual growth rate (CAGR) of 10.75% during the period from 2013 to 2018. Included in this estimate are reagents and kits and chemicals, as well as instruments and equipment. The need for automation, however, has to be balanced against economic factors, especially for those institutions associated with academic or governmental research. Those that need to purchase equipment may be looking for used equipment because they are dealing with restricted budgets, while labs which are purchasing new equipment will want to sell their current inventory to make room for the new. If the lab owner wishes to sell the assets, the first step is obtaining a laboratory equipment appraisal to make sure that the equipment is offered at the highest price possible, given current market conditions. For individual pieces of lab equipment, an online equipment auction allows owners to sell their equipment with maximum exposure by combining assets with like items from other participants.
  • Business sale: A profitable lab may be sold off as an independent operation, or it may be sold as part of a complete business package. In either case, an equipment appraisal is needed to justify the highest purchase price possible.
  • Bank and SBA financing: Labs are frequently in need of financing to purchase raw materials for long-term experiments, expand research capabilities, or upgrade existing equipment. Bank or SBA loans for these purposes may require some type of collateral, which could be the existing lab equipment. A professional equipment appraiser can establish an equipment value that might make the lending authority feel more comfortable about providing the requested amount.
  • Legal proceedings: From time to time the lab might be involved in some type of legal proceedings such as a partnership dispute or divorce litigation. Equipment appraisers help the lawyers and litigants place a realistic value on the business so that all parties are treated fairly.
  • Insurance: It might be difficult to replicate all of the existing reports or experiments if some type of accident or natural disaster occurs in the lab. There might be a certain value on a medication that was close to being introduced in human trials, or a water quality testing facility could lose years of results. An insurance valuation may include both a tangible machinery and equipment appraisal, as well as the intangible benefits of the any ongoing experiments and research.

If your business needs a laboratory equipment appraisal for any reason, make sure the report is assembled and reviewed only by an accredited equipment appraiser. These professionals are experienced and well-trained in providing accurate equipment appraisals. If the appraisal report is not in compliance with Uniform Standards of Professional Appraisal Practice (USPAP) guidelines, it is not a “qualified appraisal,” and will not hold up to scrutiny by buyers, the IRS, courts, or lenders.

Tags: equipment appraiser, laboratory equipment, lab equipment appraisal

4 Details Potentially in a Heavy Equipment Appraisal

Posted by Equipment Appraisal Services on Mon, Oct 05, 2015 @ 03:00 PM


When you own heavy equipment, knowing the equipment value is an important part of your business' financial situation. But what does a machine appraiser look for when they're performing a heavy equipment appraisal? In this post, we'll take a good look at what details an equipment appraiser looks at during a machinery and equipment appraisal and how it affects your equipment values.

Excessive Wear That Doesn't Match the Meter Hours

When an equipment appraiser is performing equipment appraisals, one of the biggest signs that something may not be right with the equipment is when there's wear on the machine that is far too excessive for the hours shown on the meter. Much like an odometer reading that shows very few miles on an old, beat-up vehicle, a mismatched amount of wear compared to the amount of hours on the meter is often a sign of tampering. This raises a red flag for most appraisers performing a heavy equipment appraisal and can lead to a much lower appraisal. If you have equipment that has excessive wear, documenting what has happened with the machinery will help the equipment appraiser get the whole story and value the equipment accordingly.

Legal Title Issues

When a machine appraisal is taking place, one of the areas that is looked into is the title for the machinery being appraised. Because issues with the title can affect your ability to sell the machinery or legally claim financial rights on the equipment, it's an important part of the appraisal process. A title that has the wrong name, a co-owner who is not part of the business or other legal issues can impact your ownership of the machinery, which means that you can't depreciate it in your accounting. A salvage title can raise questions about whether the machinery can be safety operated or if there is hidden damage or other problems that could affect its value. If there's any possible way to clear up any title issues prior to your heavy equipment appraisal, it will help the process go more smoothly.

Poor Maintenance or Nonexistent Repair Records

When you own machinery and times are difficult in your industry, it's often less expensive to repair or maintain your equipment on your own or put it off instead of hiring the work out. But a lack of maintenance, incomplete repairs or nonexistent records can make it appear that the machinery has been neglected and will often devalue the equipment. If you can document the maintenance or repairs you've done on your machinery, including any receipts for supplies or parts, you can help avoid this potential appraisal pitfall.

Excessive Abuse

This is different than the excessive wear mentioned above, because it's a sign that the machinery has been abused and may have been taken well beyond its safe limits in daily use. Machinery that falls into this category can include serious dents in the body panels, welds, bends or cracks where the machinery has been taken well beyond its original specifications or rips, cracks and tears in the cab and safety equipment that compromises operator safety. By taking the time to properly train your workers and stay on top of any repairs or safety issues, you're ensuring that your equipment will receive a great appraisal value.

If you're ready to have a heavy equipment appraisal performed on your machinery, take a few minutes to get your records together and make sure any needed repairs or maintenance is performed. Then contact a qualified machinery appraisal service to get a quote

Tags: machinery valuation, equipment appraiser, heavy equipment appraisal