Equipment Appraisal Blog | Understanding Machinery Appraisals

When you need an equipment appraisal, the timing can often be inconvenient or problematic to your schedule. But when it's needed, you know the task must be handled. Fortunately, there's another option for you to consider that can give you the appraisal you need without having to sacrifice your schedule in the process. Here's a quick look at online equipment appraisal and how it can benefit your business.

Online Equipment Appraisal: The Benefits of the Process

But what is an online equipment appraisal? When an appraiser does not go on site to view your equipment first hand and instead relies on the specifications and pictures that are provided by the owner, this is known as an online equipment appraisal or desktop appraisal. It has a number of benefits for your business.

Since the appraiser's travel time and expense are eliminated, this type of appraisal can provide you with what is usually a more economical option. For many use cases, it provides sufficient documentation of the equipment's value. When you're trying to get an idea of what a piece of machinery's value is, it can give you a solid ballpark figure to help get you started. 

If your equipment is fairly standard, an online machinery valuation is an easy way to find out what it's worth. When you have a large number of the same machinery, such as a fleet of semi trucks that were all purchased around the same time and have similar mileage on the odometer, getting an online equipment valuation is a good way to get an idea of the overall value. You'll still need to provide some information when having a group of the same model machinery appraised, including ID numbers and mileage or hours.

In general, when an appraisal needs to be produced fairly quickly, the equipment in question is fairly standard in your industry or the equipment is located far from an appraisal company, a desktop appraisal can be a great choice. You will still need to provide some information and time to the appraisal company in this situation. It will require a well-detailed description or list of the asset or assets in question to help the appraiser get started in researching that machinery. Excellent photos to show key areas of the machinery will be needed to verify the machinery's overall condition. What's more, you'll also need to make available a person who is familiar with the equipment and who is authorized to speak on your behalf to the appraiser about the machinery being appraised.

However, it's important to know whether a desktop appraisal would be appropriate for your situation. If the value of the machinery is in question because of a contested case in court, such as a divorce, lawsuit or issues with your insurance company, this type of appraisal may not be sufficient for your purposes. In these situations, an in-person appraisal will almost certainly be needed, with the report prepared by a certified equipment appraiser that will hold up well to strong scrutiny in these situations.

The equipment valuation process is a vital part of your company's asset protection and risk reduction plan, but that doesn't mean it has to be a big problem. Online equipment appraisal can provide you with a more economical format that doesn't take as much of your time and often provides solid results for most purposes. 

When you think of machinery appraisals, you probably imagine a qualified equipment appraiser coming out to your facility, examining your equipment in person, and delivering a machinery valuation based on the in-person visit. You know that online machinery valuations are an option, but can't help worrying whether they are a good substitute for the in-person visit when accurate equipment values are needed. We at Equipment Appraisal Services offer online appraisals along with in-person appraisals. We have put together our thoughts on online appraisals to inform you what to expect when getting equipment appraised online and help you make the right decision for your needs. 

What to Expect With an Online Appraisal 

The online appraisal process is similar to the in-person appraisal process. In a typical online equipment appraisal, the appraiser will ask for the make, model, and serial number of the equipment. Since the appraisal cannot examine the equipment in person, he or she will request pictures or video that show the equipment's condition in detail. This is something many equipment appraisers do in person anyway, since they finish the appraisal offsite. The client will provide some additional information regarding condition, repairs, or rebuilds.  Mileage and hours will also be requested.

You may be expected to provide the appraiser with maintenance reports, service logs, upgrades, or any other written material you have that would help the appraiser determine the appropriate equipment values, just as you would in an onsite equipment appraisal. The appraiser will tell you what paperwork they need to see in advance of the appraisal, so you can gather and send all the relevant documentation. 

The appraiser will then review the information that you provided and perform their own research to determine machinery value. Finally, the appraiser will write up a report (which notes the appraisal was performed as a desktop appraisal) that sets out all findings. 

Knowing what happens during an online appraisal can set your mind at ease if there are no local machinery appraisal experts near you. It can also help you make the right choice for your appraisal needs. When you need an appraisal done quickly, an online machinery valuation firm may be your best bet if local appraisers are unable to fit you in.

Ultimately, both in-person and online equipment appraisals can work well. The key here is selecting an appraisal specialist who is properly qualified and will deliver an appraisal report that is consistent with the Uniform Standards of Professional Appraisal Practice (USPAP). If the report you receive is not USPAP compliant, it will not hold up in court or under IRS scrutiny. 

We at Equipment Appraisal Services perform desktop appraisals of equipment and machinery als well as on-site appraisals. Each of our appraisals is prepared by a qualified machine appraiser, then assembled and reviewed by one of our accredited appraisers in Machinery & Technical Specialties. All of our online appraisals are USPAP compliant and therefore guaranteed to hold up to IRS, legal, or financial review. 

Whether you decide to hire an in-person appraiser or an online equipment valuation firm, the appraiser should be able to discuss the valuation process with you beforehand. He or she should answer any questions you have, and set your expectations for the time frame, process, and appraisal report. 

We would be happy to discuss your online equipment appraisal needs, and give you a quote for the appraisal, in a phone call. To learn more, call us at (888) 343-9335.