When you're considering having a machinery valuation done, have you ever considered what makes a certified equipment appraiser qualified to determine the value of your equipment? It's a bit of a process, but we thought we'd share what our appraisers go through before they're considered ready to look at your machinery and come up with a solid value that will hold up under strong scrutiny. Here's what's involved in becoming a certified machinery appraiser.
What's involved in the process of becoming a certified equipment appraiser?
There are several different appraisal associations, each of which often has their own appraiser certification process. The ASA focuses on pure appraisal science and is the premier appraisal society in the US. The ASA accreditation is one that lenders and attorneys look for as the bar is high to obtain compared to some of the others.
Almost every certification process entails a combination of education and experience. To become certified, an appraiser needs to have a certain amount of time in training, whether in a curriculum of specific courses or a range of continuing education classes to make up their education. Methodologies need to be standardized based on historical performance to ensure that they hold up well to strong scrutiny, whether that's in a court of law, a tax agency, a financial institution or an insurance claim.
Experience is typically developed under a senior appraiser who can show a new appraiser how to approach the valuation process and some of the variables they may encounter in the field. This experience typically lasts several years, providing the appraiser with the opportunity to pick up experience with a wide range of machinery, exposing them to a number of different aspects of the process. This will also give them the opportunity to see how valuation works in practice, depending on the specific need for the appraisal and why it's needed.
Once the candidate has acquired the necessary education and experience to complete their program's requirements, they'll need to pass an in-depth exam that provides the association with a solid idea of the candidate's abilities. This may include a range of question types, from basic multiple choice or answer-selection formats to requirements to explain in detail how to appraise a specific item and why the appraiser came up with that specific value in that particular situation. Once they've passed the test, they're able to receive their certification and begin practice as a certified equipment appraisal specialist.
Now that you know what's involved in the process of becoming a certified equipment appraiser, you'll have a better grasp of what your appraiser has gone through to be able to provide you or your business with a solid idea of what your equipment is currently worth. The methodologies used in developing a certified appraisal report provides you with a solid basis for value, whether you need the appraisal for a sale, insurance, legal purposes, taxes or financing for your company.