5 Steps to a Machine and Equipment Appraisal
- Identify the purpose of the appraisal and the client, the items needing to be valued, The appraisal purpose, intended users and definition of value.
- Collect prudent information and data regarding the purpose. Identify all equipment assets, classify and group similar assets together, by model/description, serial number, manufacture and hours/miles
- APPLY what valuation determination approach should be used? USPAP REQUIRES THAT YOU CONSIDER ALL 3 VALUATION APPROACHES (market data approach, cost less depression approach and the income approach) Then choose and apply the appropriate valuation for the equipment property.
- VALUATE considering the valuation approach applied in the previous step, Research and develop and opinion of market value for the equipment.
- DELIVER a professional certified appraisal report in accordance with USPAP. Make Copies, Delivery the equipment appraisal report to the intended users identified in Step 1.
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