Johnson Appraisal Group – Equipment Appraisals
As a NEBB certified Firm we have the qualifications to accurately assess your equipment from farm equipment to commercial fridges. We have the knowledge to get your appraisal done right. We have been doing equipment appraisals for many years. We have a vast experience in all types of equipment. Here at Johnson Appraisal Group we offer our services across the country. If you are looking for an appraisal we are the experts you are looking for!
About Equipment Appraisals
The most obvious reason for obtaining an equipment appraisal is to support loan and financing applications. Equipment appraisals are performed to determine market value and cost or any income generated from the machinery. The purpose of any appraisal defines the appraising approach that will be used. They are ordinarily needed and interpreted by attorneys, accountants, lenders and business owners.
The Association of Machinery Equipment Appraisers (AMEA) accredits equipment appraisers. They currently certify over 300 members nationwide. Certified equipment appraisers are required to perform their appraisals in compliance with AMEA standards which include appropriate ethical obligations. Periodic updating of certification is required.
The basis of determining market value is ordinarily determined by researching the value of comparable equipment in the current market. Other research items include the equipment’s age, condition, history of maintenance, repairs, manufacturer recalls, replacement cost, and income generating capacity, if any.
Commonly Asked Questions – Equipment Appraisal
How do I know if I need an equipment appraisal?
In the majority of cases, lenders, courts, or government agencies require appraisals. A 3rd party that is completely unbiased performs the appraisals.
How much does an appraisal cost?
The costs vary greatly for each type of appraisal, so no set number can be provided. The appraisal is based on a number of assets, location of said assets, industry type, etc. It is important to find an appraiser who has a good reputation to make sure they give the most accurate appraisal. It is recommended to research the company by looking at review websites.
What does the report consist of?
A report should be well written, to the point, and precise. You will want to make sure the appraiser is performing a report that is USPAP (Uniform Standards of Professional Appraisal Practice) compliant. The standard items below should be included in the report:
Reasoning behind the use of the appraisal
Date upon which evaluation is effective
Date appraisal was administered
Explain the scope of work performed
What the use of the equipment is
USPAP certification, including signature of appraiser
How long will an equipment appraisal take?
This is entirely dependent on the amount of items there are to be appraised. Sometimes it can take only a few days for a certified appraiser to deliver his/her report other times it can take months. The more items to be assigned a value, the longer and more costly the appraisal(s) will be. Always make sure to plan accordingly, since there is no way to estimate how long the appraisal will take before the appraisal begins.