There are many reasons why business owners hire licensed appraisers to handle their machinery and equipment appraisals. A certified appraisal, which only a licensed appraiser can perform, is not only USPAP-compliant, but it will stand up to scrutiny by peers, the IRS, and the courts. More important than any of that, however, is that a certified appraisal will be accurate and properly represent the value of whatever’s being appraised.
One business owner recently learned this lesson the hard way. Todd Jessep, the owner of an Atlanta restaurant, decided to close down the business and retire. He sold off all of the restaurant’s assets, including a massive grill that he’d purchased a few years earlier.
When the equipment appraisal came in, Jessep disagreed with the figure quoted for the grill, and instead of speaking to the appraiser and making his case, simply disregarded the official appraisal report and did his own. The highly inflated numbers tipped off the IRS, and now Jessep’s retirement is on hold as he slogs his way through an ugly audit.
Don’t let this happen to you. If you need an appraisal done, hire a certified appraiser. And if you disagree with any of the numbers, talk it out. It’s a lot easier than talking to the IRS.
Credentialed appraisers understand that their work is extremely important to your business’ success. When you have an appraisal completed, you can ensure that you will receive the best possible value for your investment and that the deal you make is the best one for you and your business.
There are a few things that you should look for in an appraiser and you want to take the time to choose an experienced individual. You want an appraiser who is trustworthy, knowledgeable and has a track record of good customer relations. These traits can make the difference between a successful appraisal and an unsuccessful appraisal; a good appraisal can make the difference between a profitable sale and a losing sale.
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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