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The Dangers of Not Getting a Certified Machinery and Equipment Appraisal

October 20, 2010

 

A recent story out of Wisconsin illustrates the importance of equipment appraisal.

Two small Wisconsin towns – Vernon and Big Bend – have used a shared fire department for years. But now each town will be getting its own fire department, so the machinery and equipment had to be divided between the two new entities.

Instead of having the machinery and equipment appraisals done by a Certified Machinery and Equipment Appraiser (CMEA), it was performed by the town supervisor, who kept the appraisals low so that both communities could get equipment at “reasonable prices.” None of this would have been a huge deal – except that there was a clerical error made in the bidding process.

Now Big Bend has the lion’s share of the equipment, and to add insult to injury, Vernon has no idea how much of a loss they incurred because of the non-professional appraisal that was done. It’s estimated that the loss is somewhere around $180,000, but who can know for sure?

Always have a CMEA perform an equipment appraisal. A Certified Machinery and Equipment Appraisal is defensible, irrefutable, and substantiated.

NEBB Institute endorses and strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice. The Institute provides initial and monthly comprehensive education, ongoing support, and a dynamic international network, and certifies professionals in the art of machinery/equipment appraisal and brokerage.

By: NEBB Institute

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