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While the Kids Are Away, the Appraisers Will Play
There’s a long-held notion that when school lets out for summer vacation, the last person out slaps a padlock on the door and it remains empty and silent until classes resume in the fall. But summer is often the busiest time for schools, even if it doesn’t appear so to the outside world. Summer is […]
Depreciation of Machinery and Equipment
Different industries assign different meanings to the word depreciation. Accountants say that it’s the allocation of the cost of an asset across its useful life. Depreciation takes into account normal wear and tear over the asset’s life. Machinery and equipment appraisers, however, assign a different meaning to the term. To appraisers, depreciation is the estimated […]
Do-It-Yourself Appraisals Are a Bad Idea
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 […]
Summary Appraisal Report Vs. Desktop Appraisal Report
After a CMEA performs a machinery & equipment appraisal for your business, he or she will give you an appraisal report that states his or her findings and estimates. You could receive either a summary appraisal report or a desktop appraisal report, depending on the arrangements you made with your CMEA. A summary appraisal report typically requires an […]
Preparing for an Appraisal
One of the biggest mistakes you can make prior to a machinery or equipment appraisal is not preparing properly for it. If you want to ensure that your appraisal comes in at the highest possible price point, preparation is key. Here are a few best practices that will help in this regard. Cleaning & Repair. […]
Hypothetical and Extraordinary Assumptions in USPAP
The Uniform Standards of Professional Appraisal Practice (USPAP), to which every CMEA adheres, discusses two types of assumptions professionals make when performing appraisals. These are extraordinary and hypothetical assumptions. Extraordinary assumptions are directly related to an appraiser’s specific assignment. If these assumptions are discovered to be false, the appraiser would be forced to change his […]
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