This past year we did a number of Restricted appraisal reports. All of them were for business owners, of course, and mostly for buy/sell/exchange scenarios. One was a manufacturing facility to be transferred from a retiring father to his in-charge son; another was a food processing plant for the purpose of assisting with an internal…Read More
Appraisals in the Time of Pandemic
The evening of March 12, we were on a mostly empty flight back from Pittsburgh, PA where we’d spent 4 days inspecting a chain of grocery stores for a buy/sell agreement. The TP and hand sanitizer sweep began while we were there, as the Allegheny County Health Department confirmed COVID-19 cases in the area. On March 13, as you may remember, a…Read More
Busch’s Standards: Recipe for Reality, Thoughts on Chapter 1
Lawrence Busch’s Standards: Recipes for Reality covers the subject of standards in considerably more complexity than was really necessary for our purposes: developing a section on standards for appraisal review classes. As early as the introduction we found what the class needed, but by then I was already captivated by his premise that standards shape…Read More
Deconstructing Daubert on the Art of Appraisal
Appraisers frequently refer to what they do as an “art.” And in fact, the word “art” features prominently in the title of a book on appraisal review published by a major appraisal organization. But the practice of referring to appraisals and appraisal review as an “art” can be problematic, especially when we’re providing appraisals to…Read More
Gauging Competency in Appraisal Review
While gauging competency in appraisal review is similar to using a limit gauge in order to determine whether a part is within prescribed limits of tolerance, it’s not, of course, that simple. An appraiser’s competency depends on a number of factors, ranging from experience with the equipment and its market to the intended use of…Read More
Do You Need an Industry-Specific Valuation Expert?
Equipment appraisers often claim expertise in particular markets. And we do often become experts through our experience in valuing a particular industry throughout the years. In many situations, however, it’s more important to be an equipment appraisal expert than an industry expert! An expert equipment appraiser knows how to research the processes and equipment lines…Read More
USPAP 2014-15: 7 Notable Changes
Every two years, USPAP (Uniform Standards of Professional Appraisal Practice) gets an update. That doesn’t mean, of course, that all appraisers are learning about the updates in the same year that the new version of USPAP hits the streets. In fact many appraisers only take a USPAP class every 5 years! Or, as we discussed in…Read More
The Financial Risks of Flawed Appraisals
A previous post introduced the five qualities of a credible appraisal, and in a perfect world, the equipment appraisal report you’re basing financial decisions on would always adequately address those USPAP-specified qualities. The fact is though, as we all know, that this is not a perfect world and many equipment appraisal reports don’t meet the…Read More
The Difference Between an Appraisal and an Appraisal Review
When clients call our office asking for an equipment appraisal review, I’ve found it’s important to ask them the purpose of the appraisal review. That quickly opens up the discussion about what an equipment appraisal review is and is not. And believe me, not everyone understands the difference between an appraisal (a quantitative analysis) and…Read More
5 Rules for Choosing a Qualified Equipment Appraiser
In a previous equipment appraisal post, we discussed the fact that machinery and equipment appraisers are not issued California appraiser licenses and certification pursuant to Assembly Bill 527. The regulations of that bill, which were established by what is currently the Bureau of Real Estate Appraisers, are only applicable to real estate appraisers. Machinery and equipment…Read More
Accredited Appraisers vs. Certified Appraisers
Every now and then a client asks about our California appraiser license and certification pursuant to Assembly Bill 527. The regulations of Assembly Bill 527, we explain, were established by OREA (Office of Real Estate Appraisers now called the Bureau of Real Estate Appraisers) and so are only applicable to real estate appraisers. Machinery and…Read More
USPAP: Not just for Litigation Appraisals
Litigation support, from an equipment appraiser’s point of view, often seems like a long discussion about what constitutes an adequate appraisal report –– and that inevitably includes explaining what USPAP is and why it’s important. Of course, the benefits of a USPAP report aren’t limited to litigation purposes: professional appraisal standards benefit everyone in every situation for…Read More