National Equipment Appraisal will work with you to determine the scope of work for the appraisal project. As our client, we help you make intelligent decisions by providing you exactly the information you need. Here are examples of the different levels in scope for appraisal projects.
A detailed equipment listing with individual values, aggregate value totals, full narrative report including all limiting conditions, critical assumptions, definitions of values, approaches to value, representative photographs, and research bibliography, conducted and written to comply with all standards of USPAP (Uniform Standards of Professional Appraisal Practice).
Sometimes called an "Inventory Appraisal", this type of assignment is used when an accurate asset listing does not exist. This approach requires a detailed inventory and inspection of all the assets.
This type of appraisal is most often used by financing institutions because it includes a site visit and collateral verification. Attorneys and CPA's rely on the Complete Appraisal because it presents the highest level of appraiser inspection, verification and assurance.
Walk through Appraisal
An appraisal of limited scope where the appraiser inspects the assets on a cursory basis, concentrating on those assets that collectively represent the majority of the aggregate value. The walk through appraisal involves a detail inspection of a representative portion of the assets and the inspection is used to determine the physical condition and to verify the existence of the major assets.
The client provides the appraiser a detailed list of the assets including description, age and original cost. Often times this information is obtained from the company's fixed asset ledger or depreciation schedule. Smaller assets are grouped together in "lots" and valued using standard industry depreciation rates. The appraiser focuses on the larger capital items and communicates his findings in a report that is fully compliant with USPAP.
An appraisal of limited scope whereby the appraiser estimates the value of the equipment from his desk with only a listing supplied to him, and without benefit of a physical inspection of that equipment. Desktop appraisals are common due to time, travel, and cost considerations.
If a site visit is not required and timing is short, a desktop appraisal may be utilized. A detailed listing must be provided the appraiser and personnel familiar with the assets should be available to discuss their condition. Since the appraiser has not personally seen the equipment in operation or verified its condition, the degree of assurance may be less than a Complete Appraisal. National Equipment Appraisal compiles Desktop appraisals in conformance with the regulations and guidelines of USPAP.
Industrial Audit Service
The Industrial Audit is a lower cost alternative to the appraisal reports listed above. A set daily fee allows our client to determine the extent of the information required. A typical Industrial Audit is completed by an asset management services employee for a secured lender or law firm that needs to verify collateral counts, conditions and marketability of an asset. Many lending contracts require collateral audits and frequently the audit precedes a lawsuit - especially when a lender needs to decide if the collateral is worth attaching. The scope of the Industrial Audit is designed around your specific requirements. To learn more about the Industrial Audit Service, or Collateral Inspection Services, please contact National Equipment Appraisal at 877-282-7146.
We highly recommend a Complete Appraisal because it offers the highest level of assurance. The engagement includes a site visit by the appraiser performing the appraisal.
Since condition is one of the most important criteria for determining value it's wise to hire an appraiser who knows what to look for and the right questions to ask. A personal knowledge of the equipment's operating condition is something that cannot be declared or substantiated through a Desktop Appraisal.