Top 10 Equipment Appraisal Questions

Top 10 Equipment Appraisal Questions You should ask.

These Top 10 Equipment Appraisal Questions are the most common equipment appraisal questions. We have, and we have tried to give our clearest answer and also what to watch out for. We have also included a link to a more in depth answer to give you the best information we can provide to help you make the smartest decision when choosing an equipment appraiser.

1. What does an Equipment Appraisal Cost?

• Answer: Each Appraisal is individually quoted based on one of three methods. 1st – Amount of Line items, 2nd Amount of Time, 3rd Flat Rate. Every client has different needs - there are factors like duplicate items, small cost items that can be combined, travel time, multiple locations, rush delivery of the appraisal report, litigation concerns, etc. With that in mind, we review each job, and we try to save the client money with our bid while still giving a realistic bid based on real conditions. We also like to give you an expected total cost up front – our quotes usually can get back to you within an hour.
• We are almost always Below or equal to our competition, but at Master Certified Equipment Appraiser quality.
• Article: Negotiating Fees for Equipment Appraisers

2. How long does an Equipment Appraisal Take?

• Answer: Again, this is specific to the Equipment Appraisal. On most small to medium jobs, we can usually have the report in your email within 3 -5 days after we have received all the data. The site visit timeframe and / or data collected by your staff would add time to that and should be planned for. Larger jobs (100+ pieces of equipment or multiple distant locations) will be given an expectation up front. The longest we have ever taken is 2 weeks (and that was a 5 state, 12 location, 1200 item job).
• Generally our Turn-a-round is 1/3 of the normal appraisal company time.
• Article: What Equipment Appraisers do - Time Expectations.

3. Are your Equipment Appraisers Local?

• Answer: Yes and No! We have over 400+ local Appraisers we use, and we mirror the exact appraiser specialist to the equipment they are familiar with. Additionally, we have 3 Master Certified Equipment Appraisers (1 in each of our Primary Regional Offices) that we try to use first. Many Appraisal Reports require the appraiser to be “More” qualified, and we make sure you are covered in that instance.
• Please note: there are some instances that a “Local” appraiser is a bad idea – feel free to ask us more about that.

4. Do you offer SBA / IRS Qualified Appraisal Reports?

• Answer: Yes! We only produce Qualified and Certified Equipment Appraisal Reports. We use the U.S.P.A.P. and I.F.R.S. guidelines depending on the client’s specific needs. All of our Appraisers have passed stringent training, maintain continuing education, and hold themselves out as Certified Machinery and Equipment Appraisers. Our Appraisers have one or more of the top certifications in this field, those being: MCMEA (Master Certified Machinery & Equipment Appraiser), CMEA (Certified Machinery & Equipment Appraiser), ASA (Accredited Senior Appraiser).
• We have 3 of the 23 Master Equipment Appraisers in the USA
• Article: Lending, Financing, SBA Equipment Appraisals

5. Are your Appraisers Certified and by whom?

• Answer: Yes! This is the same as above. We only produce Qualified and Certified Equipment Appraisal Reports. We use the U.S.P.A.P. and I.F.R.S. guidelines depending on the client’s specific needs. All of our Appraisers have passed stringent training, maintain continuing education, and hold themselves out as Certified Machinery and Equipment Appraisers. Our Appraisers have one or more of the top certifications in this field, those being: MCMEA (Master Certified Machinery & Equipment Appraiser), CMEA (Certified Machinery & Equipment Appraiser), ASA (Accredited Senior Appraiser).
• Our Appraisers are Certified By the NEBBI and / or the ASA with many other designations in other disciplines.

6. Can your Equipment Appraisers be Expert Witnesses for Court, and Litigation cases?

• Answer: Definitely! Our appraisal reports are substantiated, irrefutable, and reviewed for law changes constantly. We strictly follow the most current guidelines of U.S.P.A.P. (Uniform Standards of Professional Appraisal Practice) as promulgated by congress as the industry guideline. Our Appraisers (especially our Master Appraisers) are court tested, and have passed the Daubert Challenge in every court they have appeared in.
• Our Appraisal Report Format is easy to present and defend and has been positively received by every Judge who has reviewed our documentation.
• Article: Litigation / Court Equipment Appraisals

7. What Information / Data do you need to Start?

• Answer: We will schedule your appraisal and work through collecting the data either by an onsite visit or through desktop collection after we receive the following from you:

1. The Client Requesting the report.
2. The Business and or locations where the equipment is located.
3. The Value Level you want us to appraise the equipment at.
4. The Time Frame you need your report in.
5. What the Appraisal is for (Needs to be Specific).
6. An asset list or depreciation schedule to quote the job.
7. Contact information (Phone, Email, Titles, Etc.)

• Generally, this first step of the process can be done in an Hour – We keep it simple for you and are here to help.
• Article: Getting Ready for the Appraisal Process

8. What do you mean by Value Level of Equipment?

• Answer: There are 12 different types of value that can be applied to equipment, and they each have a specific situation in which to be used and a very specific U.S.P.A.P. definition of each. That being said, most clients only need 1 or more of the following (see the Article or request a copy of the specific current definitions from us):

1. Fair Market Value in Continued Use (Going Concern Business including setup, install, and tweak in time costs)
2. Fair Market Value (Going Concern Business)
3. Orderly Liquidation (Sale of equipment over time)
4. Forced Liquidation (Sale of equipment on specific date – Auction)

• We can Appraise at All Equipment Value levels – Many of our clients ask for multiple values on one report.
• Article: Choosing Equipment Value Level

9. What’s the difference between an Onsite and Desktop Appraisal?

• Answer: 1st - the method of data collection on the equipment or machinery is different between the reports. Our values will be the same, the research will be the same, and the report will be the same except for a statement that says the data was collected by our appraisers or by the business. 2nd - the cost of the desktop appraisal will be lowered due to the fact that our equipment appraiser did not physically go onsite, thus time for the appraiser.
• We offer a Free Data Collection Form that will help you give us all the information we need in a perfect format, saving YOU Time & Money. – Just Ask!
• Article: Onsite Appraisal Article: Desktop Appraisal

10. Can’t I just get a local Dealer or Auctioneer to Appraise my Equipment?

• Answer: Short answer – Dealers, Auctioneers, Equipment Resellers, and other non-Certified people offer appraisals, Don’t Risk It.
• BEWARE! They are almost never certified by a real certification company.
• BEWARE! They are usually Bias in some way about value (are they hoping to buy it or sell it and fudge the price accordingly).
• BEWARE! They will say they are the same – but they are NOT. And their reports are usually worthless in court, rarely accepted by SBA, IRS, or other entities, and are starting to be rejected by Banks and other Lenders.
• The Most Expense Appraisal You will ever buy – Is the second one because your first appraiser was not accepted!
• Articles: How to Hire the Right Equipment Appraiser