A qualified machinery and equipment appraisal firm should posses the ability to develop a credible appraisal report defining any of the below recognized value concepts. It is crucial that the appraiser listens to the clients needs and develops a scope of work that centers around one or more of the industry recognized value concepts below. Depending on the purpose and intended use of the appraisal report our staff can guide you in the right direction.

Listed below are the most recognized and accepted appraisal concepts. Call us today to tailor fit an appropriate value concept for your particular asset, or group of assets.

Fair Market Value
The estimated amount, expressed in terms of money, which may be reasonably expected for a property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, as of a specific date.

Fair Market Value in Continued Use
The estimated amount, expressed in terms of money, that may reasonably be expected for a property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of relevant facts, including, installation, as of a specific date, and assuming that the earnings support the value reported. This amount includes all normal direct and indirect costs, such as installation, and other assemblage costs, to make the property fully operational.

Fair Market Value Installed
Is the estimated amount, expressed in terms of money, that may reasonably be expected for an installed property in an exchange between a willing buyer and willing seller, with equity to both, neither under any compulsion to buy or sell and both fully aware of all relevant facts, including installation, as of a specific date. This amount includes all normal direct and indirect costs, such as installation, and other assemblage costs, to make the property fully operational.

Fair Market Value Removal
Is the estimated amount, expressed in terms of money, which may reasonably be expected for a property between a willing buyer and seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of relevant facts, as of a specific date, considering that the property will be moved to another location.

Orderly Liquidation Value
Is the estimated gross amount, expressed in terms of money, that could typically be realized from a liquidation sale, given a reasonable period of time to find a purchaser(s), with the seller being compelled to sell on an “as-is, where-is” basis, as of a specific date.

Forced Liquidation Value
Is the estimated gross amount, expressed in terms of money, that could be typically realized from a property advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an “as-is, where-is” basis, as of a specific date.

Liquidation Value In Place

Is the estimated gross amount, expressed in terms of money, that could typically be realized from a failed facility, assuming that the entire facility would be sold intact with a limited time to complete the sale, as of a specific date.

Replacement Cost New
Is the current cost new of a similar new property having the nearest equivalent utility as the property being appraised. Is the estimated amount, expressed in terms of money, which may be expected for the whole property or a component of the whole property that is retired from service for use elsewhere, as of a specific date.

Scrap Value
Is the estimated amount, expressed in terms of money, which could be realized for a property if it were sold for its material content, not for a productive use, as of a specific date.

Salvage Value

The expected residual value of an asset at the end of its economic life span.

Insurance Cost New

Is the replacement or reproduction cost new as defined in the insurance policy less the cost new of the items specifically excluded in the policy, as a specific date.

Insurable Value Depreciated

Is the insurance replacement or reproduction cost new less accrued depreciation considered for insurance purposes, as defined in the insurance policy or other agreements, as of a specific date.

The above definitions were derived from ASA’s Valuing Machinery and Equipment

Our clients are located sporadically throughout the United States. To date, we have accepted appraisal assignments from clients in Indiana, Ohio, Michigan, Illinois, Kentucky, Wisconsin, Colorado, California, Florida, Utah and New York. Call us today to discuss your appraisal needs.