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:
Who the users are:
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.