---
title: What exactly is a USPAP compliant appraisal?
description: Considering a machinery appraisal? Find out why you'll want to get a USPAP compliant appraisal to ensure you get the most from your investment. Learn more here.
image: https://www.equipmentappraisal.com/hubfs/USPAP.jpg
---
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# Equipment Appraisal Blog | Understanding Machinery Appraisals
## [What exactly is a USPAP compliant appraisal?](https://www.equipmentappraisal.com/blog/what-exactly-is-a-uspap-compliant-appraisal)
Posted by [Equipment Appraisal Services](https://www.equipmentappraisal.com/blog/author/equipment-appraisal-services) on Tue, Oct 10, 2017 @ 03:02 PM
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When you're considering having an equipment valuation performed, one option that is available is having a USPAP compliant appraisal performed. But what exactly is USPAP and how are appraisals that are compliant to USPAP standards different than other types of appraisals? Here's a quick look at this type of appraisal and how it can benefit you.
## What exactly is a USPAP compliant appraisal?
Standing for the Universal Standards of Professional Appraisal Practice, this represents a set of standards set and published by the Appraisal Standards Board, which in turn is authorized by the Appraisal Foundation. The Appraisal Foundation itself was authorized by Congress to be the source of appraiser qualifications and appraisal standards. Though USPAP appraisal practices were initially focused on real estate appraisal specifically, it has since grown to encompass virtually every possible item that can be appraised in business.
But how can these standards benefit your equipment appraisal? Because of the high scrutiny under which USPAP has been developed and the number of different situations under which it has been applied, it has developed into a comprehensive standard that deals well with a wide range of situations. Over time, it has been tested in a wide range of legal, financial, insurance and tax agency circles. For this reason, it has become a trusted standard that provides business and equipment owners with many benefits.
When a business suffers a loss, whether due to a fire, natural disaster or theft, insurance companies must be dealt with. If the equipment has not been properly appraised, the business has no basis for claiming a value different than the one generated by the insurance company. But the insurance figure may be a generalized average across the industry, which does not recognize that the equipment has been maintained exceptionally well in a clean, dry environment. How do you fight that figure?
What about when a tax assessment is much too high on a piece of machinery that was purchased as a disposable asset, intended to be used hard for a short period of time? When a piece of equipment is purchased as a stop-gap until something different can be made to work, it often doesn't receive the best treatment. Receiving a high assessment on a machine that has a much lower value can be difficult to fight.
When you're getting ready to expand your business, do you need to secure financing using your equipment as collateral? How can you prove to the financial institution how much it is worth? A business loan can be difficult enough without having to deal with proving your equipment's value to the bank.
Fortunately, when a USPAP appraisal is performed, it provides documentation of the machinery's value, which will hold up to strong scrutiny in a wide range of situations. The standard has been tested in many situations, so it is trusted as an accurate measure of value for the machinery in question. An appraisal report prepared by a certified appraiser ensures that your interests are being protected during the process.
Though a USPAP compliant appraisal seems like a complex process, its many benefits help provide you with a wide range of benefits. Because a certified appraiser is already familiar with these standards, they're able to properly apply them to your equipment appraisal to ensure you get an accurate value. Working with a certified equipment appraiser provides you with a range of protections that may last well into the future.
Tags: [USPAP appraisal](https://www.equipmentappraisal.com/blog/topic/uspap-appraisal), [standards of value](https://www.equipmentappraisal.com/blog/topic/standards-of-value), [certified appraisal](https://www.equipmentappraisal.com/blog/topic/certified-appraisal)
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