When you offer equipment as collateral for a loan, the lender will most likely require an appraisal. Only appraisals authored by professionals with the requisite qualifications, education and experience may be relied upon by federally insured lenders. In addition, appraisal reports must comply with Uniform Standards of Professional Appraisal Practice (USPAP) as defined by the Appraisal Foundation and promoted by the Appraisal Standards Board (ASB). It is critical that appraisals for loan purposes follow current USPAP guidelines which are updated every two years.
Michigan Aggregate Machinery’s appraisal division has seasoned professionals available to deliver appraisals that comply with USPAP and satisfy lender underwriting requirements. Don't take the chance of hiring an appraisal firm that may fail to comply with USPAP standards. Ask them if they can comply with USPAP and request a sample appraisal. If an appraiser doesn't know what USPAP is, or cannot offer a sample report—don't hire him or her.
Professionally written valuations are necessary for lending, mergers and acquisitions, calculation of capital gains, estate planning, succession, personal property tax appeal, cost segregation for accelerated depreciation, asset sales or purchases and for many other situations. Be sure that you choose an appraiser with the experience and credentials required to deliver a credible, well-documented appraisal that will stand up to intense scrutiny.
We have all been affected by unexpected outcomes in business and personal life. Bankruptcy, divorce, foreclosure, death, eminent domain, and litigation are just a few of the unfortunate situations that create the need for a certified appraisal. Don't risk hiring an appraiser who is not properly qualified to work through difficult issues. We have decades of experience and are fully capable of helping you through the most arduous situations.
Bill Horan has over 40 years in the machinery and equipment business, buying, refurbishing, and selling equipment from his own inventory and as a broker representing buyers and sellers. With his knowhow and hands-on experience in this industry Bill knows equipment inside and out. Bill's counsel can help protect the fiduciary responsibility you have to your company, your family and yourself.
Chris Baker, CMEA, FRICS, MAI, CCIM is a certified machinery and equipment appraiser and has over 25 years of experience, working with banks, CPA's, attorneys , mediators, and bankruptcy courts to ensure that USPAP guidelines, in both the appraisal development and the reporting process meet or exceed USAP and supplemental standards. Chris has the experience, education and knowledge needed to produce a report that will stand up to the strict scrutiny of lenders, SBA underwriting and if required, in the courtroom.
Don't get left holding the bag. If you're considering purchasing equipment, financing, or selling, you need to know the market value and how those numbers are determined. Contact us to help you protect your financial interests with a Certified Appraisal that will exceed USPAP.
Appraisal - An opinion of value. The act or process of developing an opinion of value by an impartial and properly qualified individual.
Value - The monetary relationship between properties and those who buy, sell, or use those properties.
Credible Appraisal – A credible appraisal is one that is worthy of belief. A credible appraisal includes support, by relevant evidence and logic, for the opinion of value.
Personal Property – Identifiable tangible objects that are considered by the general public as being “personal” – for example, furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; all tangible property that is not classified as real estate.
Comparable – A term used to describe the comparison of recent sales of similar items in order to develop an opinion of value.
Sales Comparison Approach – A procedure in which a value is derived by comparing the item being appraised to similar items that have been sold recently, then making adjustments to the sale prices of the comparables based on their differences with the item being appraised. Adjustments to comparable item prices are based on marketplace conditions and the item’s characteristics of value.
Cost Approach – A set of procedures through which a value is derived for an object by estimating the current cost to create a reproduction of, or replacement of the object. This estimate may include deducting depreciation from the total cost.
Income Approach – A set of procedures through which an appraiser develops a value for an income-producing property by calculating the present value of anticipated cash flows.
For more details on how appraiser qualifications are created and monitored and how appraisal standards are created you can read the following literature authored by The Appraisal Foundation, which is the organization authorized by Congress and is the Source of Appraisal Standards and Appraiser Qualifications for Machinery and Equipment Appraisals and Appraisers.