How Equipment Appraisers Put a Value on Collateral Assets
Asset Based Lenders often need to know equipment values in order to process collateral loans for unique assets, but the pressure of the loan cycle rarely affords them time to research the assets and industries. How do high-volume lenders determine loan value on collateral assets? The solution is simple: they hire an educated and experienced Accredited Senior Appraiser (ASA). Our appraisers at For What It’s Worth Appraisals, Inc develop comprehensive, evidence-based, USPAP-certified appraisal reports that enable lenders to make informed decisions. The video, below, illustrates the basics of our equipment appraisal process.
Asset Identification
Our company utilizes experienced equipment inspectors located throughout the United States to provide fast and efficient appraisal inspections. The inspectors collect equipment identification data from the subject assets, including: quantity, type, vintage, make, model, serial number, usage (miles, hours), capacity, dimensions, material, and options. Asset identifiers are used in the appraisal process to properly match sales comparables to the subject property. Photographs are taken to support opinions of physical condition. At the conclusion of the appraisal inspection, the equipment inspectors reconcile the client-supplied asset list to the actual subject property found on site, discussing any inconsistencies with management personnel.
Through the use of our state-of-the-art technology, our inspectors are able to provide the subject property’s data to our research team in real time. This data syncing technology allows us to produce appraisal results with a fast turnaround time, regardless of the distance of an asset from our research headquarters.
Data Research and Appraisal Methodology
After collecting the asset information, our team begins researching market conditions by searching for sales comparable data. We also consider all depreciation and measurable obsolescence. Using the available data, we determine and apply Professionally Accepted Appraisal Practices, including adjustments and calculations to determine credible equipment values. Our educated and experienced appraisal staff will ensure that relevant factors of value are taken into consideration.
Appraisal Reporting
Understanding the value of the equipment is essential for making a well-supported collateral loan.
Our clear, concise, and comprehensive appraisal report gives lenders a credible opinion of equipment values. We provide the client a detailed USPAP-certified appraisal report – reviewed and signed by an Accredited Senior Appraiser experienced in appraising machinery and equipment. The appraisal report includes an explanation of the scope of work performed. For What It’s Worth Appraisals, Inc’s equipment valuations are unbiased, evidence-based, and defendable by our appraiser expert witness.
Click on the picture, below, to watch a short video that explains our equipment appraisal process.
About the Author
Tammy Blackburn, ASA is Accredited Senior Appraiser with over 17 years of experience performing Machinery & Equipment appraisals and Inventory valuations. As an expert witness, Ms. Blackburn has defended her appraisals in Federal bankruptcy court, circuit court, and in Value Adjustment Board hearings. Having served 7 years as a Special Magistrate in 10 counties for ad valorem Tangible Personal Property, Ms. Blackburn is uniquely qualified to perform appraisals to be used for establishing taxable value.
