If you ask a CMEA to appraise your piece of equipment or machinery, you’ll eventually receive a statement of their belief about the value of the piece appraised. The value comes from a variety of factors, such as how old the equipment is and how well its been kept up. Value has a huge range because there are so many variables that come into play.
So if you know the value of your equipment, you know a fair selling price, right? Wrong.
A piece of equipment may be indispensable to one company, but may be completely useless to another. One company might be willing to pay a large amount for a piece of equipment, no matter its condition or age, because it could improve their process in some way that allows them to be a better company. Still another company might offer a lower price for that same piece of equipment because although it may make things a little easier, it won’t do much to change the company as a whole.
Despite these variables, anappraisal report is still important. It is written proof of your asset’s value. It gives you a good starting place when you want to sell your equipment. And if a potential buyer asks about your price point, you can justify your price by providing a professional’s opinion.
The NEBB Institute endorses and strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice. The Institute provides initial and monthly comprehensive education, ongoing support, and a dynamic international network, and certifies professionals in the art of machinery/equipment appraisal and brokerage.
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