gofer articles

Machine and equipment appraisals are conducted by everybody from business owners and their brokers to lending institutions like banks and credit unions. These reviews are made in order to properly assess the fair market value of physical capital during times of corporate mergers, sales, and dissolutions.

Despite the name, however, value determinations can involve not only hardware but entire facilities too, and not just factory environments but settings as diverse as restaurants, sports stadiums, and hospitals.

Cases of litigation also make extensive use of machine and equipment appraisals, such as when negotiating with insurance companies. Government often encourages businesses with corporate tax breaks, and many of these involve recognizably objective and independent appraisals.

When in the market for a professional appraiser, make certain to look for a person that advocates only on behalf of the appraisal, someone who will have no difficulties providing a detailed justification for their opinion. Believe it or not, there are many in the industry who simply expect to be trusted!

Regrettably, when it comes to machine and equipment appraisals, the potential for a conflict of interest is great, for numerous appraisers actually sell the very equipment they also appraise. Obviously, these people will note that there’s no better expert to properly judge the value of hardware than someone that would know it inside-out, for example a salesman or woman – but what’s to prevent them from profiting from both sides of a sale?

Since trust is what the appraisal business is all about, it makes sense to pick those who demonstrate impartiality upfront by making their living entirely from value determinations and nothing else. While no ironclad guarantee, it does eliminate one big area of concern. So avoid potential pitfalls by avoiding such situations altogether – and needless to say make sure that the appraiser is properly certified in the first place!