Equipment Appraisal Blog | Understanding Machinery Appraisals

3 reasons why you should have a farm equipment appraiser check your equipment before selling

Posted by Equipment Appraisal Services on Thu, Dec 13, 2018 @ 11:56 AM

farm equipment appraiser

When you work in agriculture, your equipment represents a large portion of your investment in your farm. with combines costing hundreds of thousands of dollars, many farmers are ready to invest in used equipment. But before you sell your older machinery, have you had a farm equipment appraiser take a solid look at it and provide you with a written valuation report? If you haven't, you may be missing out on potential profits that you can then roll into your farm to improve your operation and situation. Here's a quick look at several reasons why you should always have a farm equipment valuation specialist provide you with an appraisal report before you sell it.

3 reasons why you should have a farm equipment appraiser check your equipment before selling

  1. Can you get more than you're asking for machinery before you scare off potential buyers with prices that are too high? Not knowing your equipment's value in the first place may lead you to make assumptions about what it's actually worth based on the local advertisements, online ads or what your neighbor may have gotten for similar machinery not that long ago. A qualified equipment valuation specialist can determine exactly what your equipment is worth, giving you a solid starting point and a great tool for negotiation.
  2. Are there any ways you can make simple repairs that quickly improve the value of your machinery? When an equipment appraiser looks at your machinery to determine its value, it's important to remember that they work with machinery like yours all the time. This means that they're familiar with all of its quirks, including common points of failure for specific manufacturers and models. If they see something that may appear just a touch off, they may be able to advise you about repairs that will prevent more expensive repairs and improve value for your buyers.
  3. Is your equipment in demand in other parts of the country? If your equipment is not in high demand because of shifting market prices or changing environments, it may still be in demand in other areas. When you work with qualified equipment appraisers, you're seeing professionals who stay on top of all of the latest developments in agriculture. They can tell you whether you're in a good place to sell your equipment or if you may want to look elsewhere, such as an online auction site or similar option, to sell your equipment at the best possible profit in another part of the country or even world.

By having a farm equipment appraiser check your machinery before you sell it, you can improve the profit on your sale and have more money to invest in your operation. But don't settle for your local ag equipment dealership, whose sales reps and appraisers may think they have a vested interest in skewing the results of their appraisal to their own benefit by offering you more or less than your machinery is worth in hope of a quick sale. Don't settle for anything less than a certified equipment appraiser, who has solid experience and expertise in determining the value of your machinery equipment and can provide you with solid advice as to your equipment's real-world value.

Tags: farm equipment appraisers

Why ag advancement doesn't equal poor farm equipment appraisal values

Posted by Equipment Appraisal Services on Tue, Jun 06, 2017 @ 03:07 PM

used farm equipment.jpg

Farmers are the original economists. Leftover milk goes to the pigs, scraps from the kitchen feed a hungry flock of laying hens and old buckets, barrels and tarps are used time and again to help keep the farm in the black. Old equipment is repaired time and again, and with the cost of new tractors, combines and other machinery, is often considered to have poor market value. However, that's not always the case. A farm equipment appraisal can often hold a surprising amount of value, because advancement in agriculture doesn't mean your old equipment isn't maintaining its value. Here are a few insights into why this equipment often retains its value better than you may think.

Why ag advancement doesn't equal poor farm equipment appraisal values

Drones that release specific amounts of fertilizer or beneficial insects where they're needed most. Bluetooth connectivity in the cab of your John Deere tractor. Precision agriculture to levels of precision that have never been seen before. Agriculture is quickly advancing even as fewer and fewer farm kids are willing to stay on the farm to take over for aging parents. But that doesn't mean that older equipment doesn't have value. 

When it all comes down to it, today's agricultural concern is based on the perfect combination of a few specific elements: soil, climate and the farmer, who manages to work between the other two elements to ensure a successful crop, whenever possible. Having more advanced agricultural equipment doesn't make these two aspects change. For that reason, equipment that isn't as advanced still holds value.

This concept is borne out when farm equipment is appraised by a professional equipment appraiser with experience in agriculture. If your old tractor or combine are from popular lines that are known for their dependability and relatively long life, they may be worth much more than you would think. At the same time, a piece of nearly new equipment known for breakdowns and short useable lifespans may not appraise for as much as you might believe.

But where does equipment valuation fit into the picture? Most farmers can give you a good general price on what they can expect to make per acre, but often completely discount the value of the farm equipment as part of that calculation. However, much like so many expenses in other businesses, this aspect of your farm business shouldn't be overlooked. An equipment valuation performed by a certified equipment appraiser helps you get a better grip on what your farm's assets are actually worth, a necessary figure when you're projecting income or applying for insurance. When you need a loan to get through a bad crop year or two, a properly prepared appraisal report provides you with proof of value that will hold up with your financial institution.

As you can see, having older ag machinery doesn't always mean that equipment doesn't have value. A farm equipment appraisal may seem like something you could handle at the local equipment dealer, but their interests and your interests often interfere with getting a fair market value for your machinery. To get a proper equipment appraisal, you'll want to work with a certified equipment appraiser who has experience with agricultural equipment, giving them the knowledge and training to provide you with an accurate statement of value for your machinery.

Tags: farm equipment appraisal, farm equipment appraisers