Equipment Appraisal Best Practices 3

Step 3

Best Way to Hire an Equipment Appraiser

Most folks don’t enjoy buying an Appraisal. 

They would much rather buy something else with their hard earned money. 
There are times in our lives that we are forced to have Machinery or Equipment Appraised. 
The problem is – most of the time this is a once in a lifetime event. 
This means few people actually know how to go through the appraisal process. 
We understand!
This article can help this Appraisal be simple and quick for you.
We will share the best practices of getting a Machinery & Equipment Appraisal. 
This is written as if we are talking to a close friend.
Note: We Promise to tell you “What You NEED to know” but not always what you want to hear…

Equipment Appraisal Best Practices 3

Step 3: Best way to hire an equipment appraiser

To have your machinery and equipment appraisal be simple and quick do these things.

We are going to give a quick overview here and offer our free forms and tools page for more information.

Key Points about what to pay for an equipment appraisal and how to hire an equipment appraiser:

Fees come in all shapes and sizes with equipment appraisers. Most Certified Appraisers can give you a free quote when you supply them with a solid asset list or depreciation schedule. We cannot speak for everyone, but here are some of the fee structures we have encountered.
 
Fair and Equitable Compensation for Equipment Appraisers range Nationally from $600 – hundreds of thousands of dollars. Variables include:
  • Client Preparation
  • Quantity of Equipment
  • Type of Equipment
  • Location(s)
  • Type of Appraisal
  • Use of Appraisal
  • The Appraisers level of expertise
  • Onsite / Desktop / Virtual Equipment Appraisal Format
 
Note: Remember in a litigation situation you will almost always need a site visit for solid court defense.
 
Note: Remember that preparation for court, depositions, and actual court time are generally billed separately as a retainer. 
How to Hire an Equipment Appraiser

Once you have found a suitable Equipment Appraiser through our Search Tool. You will contact the Appraiser directly and start the equipment appraisal process.

Certified Equipment Appraisers are often hired through an Engagement Agreement. This agreement will show the scope of work (what is to be appraised). This agreement will also define the following important details about your equipment appraisal. Having these details in advance will save time, money, and frustration. We have created a form that you can use to collect this data in advance. See it Here…

  • Client’s Company Name
  • Client’s Contact Name
  • Client’s Address
  • Client’s City, State, Zip
  • Equipment Owner’s Company Name
  • Equipment Owner’s Contact Name
  • Equipment Owner’s Address
  • Equipment Owner’s City, State, Zip
  • List an Intended Users of the Report
  • Effective Date (Can Be Past, Present, Future)
  • All Contact Information needed such as Onsite personnel,  Accounting, Legal, Etc..
Payment Formats for Equipment Appraisers

Note: To remain USPAP compliant and Certified (depending on the certification). An Equipment Appraisal must be paid BEFORE or AT the time of delivery to remain unbiased. Why? This eliminates the other side from saying you held any sway over the appraiser’s values by withholding money.

Hourly Fee Option for an Equipment Appraisal

Hourly fee is the most expensive equipment appraisal option ranging from $50 – $450 and up.  Many times this format is billed in advance as a retainer.

By the Item Option for an Equipment Appraisal

By the item will consider how many pieces of equipment must be researched and reported. Governmental standards say equipment  valued at $2,500 and up should have its own line item in the appraisal. We have seen this be very dependent on how much equipment the company has and the type of equipment. Items below this amount fall into support, i.e., furniture, or electronics and are generally appraised in bulk with industry depreciation metrics. We have seen the per-item cost range from $35 to $250.  A good national average may be $75 – $100 in the Midwest and $95 to $125 on the coasts. Also consider that multiples of the same item may have a discount.

Flat Rate Option for an Equipment Appraisal

In Flat Rate equipment Appraisal fees the appraiser takes everything into consideration and quotes a flat rate fee. This is a good way to hire if you have given a good asset list to the appraiser.

Travel Fees for an Equipment Appraisal

Consider, many Equipment Appraisers can travel to your location(s) and still have a lower fee than a local Equipment Appraiser. Also, many times there is not a “qualified” local. Travel fees should never dismissed outright.

FindEquipmentAppraiser.com has been created to fill a drastic need in the market. To many times in the past people have been either taken advantage of or given a poor report. Our goal is to offer a free way for people needing an equipment or machinery appraisal to find the best appraiser possible for their specific appraisal situation or need.