An error in a machinery and equipment appraisal can be costly. You should have confidence that the appraisal values are accurate and are backed by evidence to support the fair market value. The following factors can help ensure that your machinery and equipment appraisal report will hold up under scrutiny.
Certified Machinery and Equipment Appraisal Report
Know what you can expect to see in a qualified equipment appraisal prepared by a certified machinery and equipment appraiser. A CMEA’s comprehensive and detailed appraisal report normally includes photographs, model numbers, serial numbers, and other descriptive information. Values are based on extensive research, personal inspection, and contact with manufacturers and suppliers to determine what machinery and equipment is really worth. A CMEA’s machinery and equipment appraisals are performed to standards set by the requirements of the USPAP. A CMEA stands behind the Certified Appraisal Report. That’s why it withstands scrutiny by financial institutions, CPAs, courts, and others.
Certification
Make sure that the appraiser you choose has a professional designation to prepare and submit an equipment appraisal – a Certified Machinery and Equipment Appraiser (CMEA). Ask for a copy of his/her qualifications and evidence of professionalism and experience in machinery and equipment appraisals. Then you know you can rely on a trained professional who is experienced in the ethics and reporting guidelines of Uniform Standards of Professional Appraisal Practice (USPAP). Only the skills of a CMEA professional make sound financial business sense in determining an accurate value. Oftentimes, a non-certified equipment appraisal will not be accepted by governing authorities or withstand scrutiny.
Code of Ethics
Make sure that your appraiser complies with the Ethics Rule of the Uniform Standards of Professional Appraisal Practice. A CMEA is required to observe the highest standards of professional ethics and comply with regulations mandated by USPAP. CMEAs should promote and preserve the public trust inherent in professional appraisal practice.
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.
By: NEBB Institute
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