{"id":12229,"date":"2014-06-04T20:47:06","date_gmt":"2014-06-05T00:47:06","guid":{"rendered":"https:\/\/www.certitrek.com\/nebb\/machinery-and-equipment-valuation-steps\/"},"modified":"2022-11-29T10:18:03","modified_gmt":"2022-11-29T15:18:03","slug":"machinery-and-equipment-valuation-steps","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nebb\/blog\/machinery-and-equipment-valuation-steps\/","title":{"rendered":"Machinery and Equipment Valuation Steps"},"content":{"rendered":"
Step 1: Assessment<\/p>\n This is where the appraiser identifies who the client is, exactly what needs to be appraised, the purpose of the appraisal, intended use, and the definition of value.<\/p>\n Step 2: Collection<\/p>\n In this step, the appraiser collects information relevant to the valuation. He or she establishes and classifies each equipment asset, and describes each by specific characteristics like serial number, manufacturer, and hours\/miles.<\/p>\n Step 3: Application<\/p>\n The appraiser determines which of the three approach should be used \u2014 sales comparison, cost, or income \u2014 \u00a0and applies that to the valuation at hand.<\/p>\n Step 4: Valuation<\/p>\n Using the approach chosen in step 3, the appraiser develops an opinion of market value for the equipment.<\/p>\n Step 5: Wrap-Up<\/p>\n Finally, the appraiser will put together the appraisal report in accordance with Standard 8 of USPAP. After any reconciliations are made, the report is delivered to the client identified in step 1.<\/p>\n Of course, this is just a general formula and each case is unique, but it should give you a good idea of how the process works.<\/p>\n