By Dian Kohoutek, CPPA

July 20, 2023

When it comes to equipment appraisals, a crucial factor that determines the accuracy and reliability of the assigned value is the information gathered during the assessment process. An experienced and reputable equipment appraiser understands the significance of gathering comprehensive data to provide an unbiased and precise valuation of the equipment in question.

Types of Equipment Appraisals:

1. On-site physical appraisal:

In an on-site physical appraisal, the appraiser visits the location where the equipment is situated and conducts a thorough inspection. This process involves personally examining the assets, documenting their condition, and obtaining essential information directly from observation. The on-site appraisal enables the appraiser to gather real-time data, ensuring a comprehensive and detailed assessment of the equipment’s value.

• Desktop appraisal:

In contrast, a desktop appraisal is conducted remotely, and the appraiser does not physically visit the equipment’s location. Instead, they rely on available data and information provided by the equipment owner or holder to prepare the appraisal report. This type of appraisal is often chosen when time, budget constraints, or accessibility issues limit the feasibility of an on-site inspection.

Regardless of the appraisal type, gathering accurate and comprehensive information is fundamental to the appraisal process. An independent equipment appraiser is typically not a mechanic or dealer with expertise in every equipment model. Therefore, they rely heavily on the information provided by the equipment owner or holder to ensure a thorough and precise valuation. To know the difference between Dealer/Vendor Appraisals and an Independent Appraisals, you can read here.

Key Information Gathered:

1. Year, Make and Model of the equipment incl. the trim if applicable.

The appraiser needs to know the specific details of the equipment, including its year of manufacture, make, and model, and any additional trim specifications if applicable. This information forms the basis for assessing the equipment’s market value and identifying comparable assets for comparison.

• A complete Serial Number

The unique serial number of the equipment is essential for accurate identification and validation during the appraisal process.

• Usage (Km or Miles and/or Hours)

The appraiser requires information on the equipment’s usage, whether it’s measured in kilometers or miles for vehicles or hours of operation for machinery. Usage data helps gauge the wear and tear and overall condition of the equipment.

• After-market options

After-market modifications or add-ons can significantly impact the equipment’s value. Appraisers rely on the equipment owner’s input to identify and assess the value of such enhancements.

• Certifications and Inspection Documentation

For equipment that requires regular re-certifications or inspections, documentation of these processes is crucial for establishing the equipment’s condition and compliance with safety standards.

• Maintenance and Upgrade Records

Recent maintenance and major upgrades documentation provide insights into the equipment’s care, condition, and potential improvements that can affect its value.

• Overall photos of exterior and interior

In a desktop appraisal, the appraiser relies on provided photographs to gain visual understanding and validate the equipment’s condition.

• Original purchase invoice (if applicable)

The original purchase invoice, if available, aids in tracing the equipment’s history and assessing its depreciation over time.

• Carfax report (if any and/or if applicable)

For vehicles, a Carfax report provides valuable information on past ownership, accident history, and other relevant data.

The importance of information gathering in equipment appraisals cannot be overstated. A thorough and accurate appraisal relies on the collaboration between the appraiser and the equipment owner or holder. By providing essential information, owners ensure that the appraisal report truly reflects the equipment’s value and condition, leading to fair and transparent transactions.

Next time you engage in an equipment appraisal, rest assured that the appraiser’s inquiries are not meant to create unnecessary work for you. Instead, they are aimed at obtaining the most accurate and fair value for your equipment, enabling you to make well-informed decisions based on a solid foundation of information.