The art of assessing equipment in an unbiased, accurate and defensible way is called equipment appraisal while the one who does it is called an equipment appraiser.
Equipment appraisal by an appraiser takes a very level of experience and common sense in developing opinions concerning equipment which also always take an unshakable type of discipline to attain the highest level of certainty.
However it is the appraiser's experience that also determines the level of accuracy of equipment.
It's very important to know the real worth of one's company's equipment or machinery worth because later or sooner,the question of what's the worth of the company’s equipment is going to be asked.
Knowing when this question might arise and what to expect when it does could enable a business owner to be prepared with an answer… even before being asked.
Most appraisers are said to take note of distinguishing features present in particular equipment that makes the equipment stand out from other equipment.
A thorough research coupled visual examination makes a very good and accurate appraisal.
The following are the factors mostly considered while evaluating or appraising equipments;
-Comparable assets with very recent sales
It will depend on several factors while appraising equipment; first, how much are the equipment being appraised.For example, a large factory with large numbers of pieces of machinery will take far longer than a small firm or company with only a couple of pieces of equipment.
Alsot timing requirements is another factor that can affect how long the appraisal will take — how soon is it needed,what's the requested value and if the type of equipment is rare or what are the features that make it unique.
An appraiser does not need to be physically available to assess the equipment to be appraised . The appraiser can rely on another means (including the client) to provide necessary documentation of the equipment to be appraised. This is considered a “desktop appraisal,” and the appraiser is required to disclose this within the report and in the report certification,
When choosing an appraiser, a company should only use a “qualified appraiser.” This individual, as defined by the IRS, has earned an appraisal designation from a recognized professional organization for competency in valuing property. Also, qualified appraisers regularly prepare appraisals for which they are compensated and demonstrate verifiable education and experience in evaluating the type of property being appraised.
And here are some reasons to consider for having the company's equipment appraisal done today;
- When a company is seeking for expansion,the company can always seek loans for expansion and therefore if the appraisal has been done,the company would know the worth and how much of their equipment would be used as collateral.
- Also in estate management and planning, knowing the worth of one's company equipment helps to use the equipment to secure settlements either by converting the equipment to money or by using them in exchange for the properties.
A seasoned machinery expert can provide an appraisal that can be used to establish asset value for surviving family members when it comes time to settle the estate.
-In addition,in the insurance sector too,knowing the current and accurate equipment appraisal done by a competent and good equipment appraisal helps know the current value of one's equipment in case of accidents such as fire,crashes and so on,so as to know the accurate value of the properties and or equipments while getting insured by one's insurance company.
However,it's important to know that in order to get an accurate and current value of a company's equipment,it's very essential to hire an appraiser with years of experience and must be well disciplined and be reviewed or referred by someone who already tested the service.