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Arizona Controversy Highlights the Importance of an Appraisal

September 21, 2011

An article published this week in The Arizona Republic discusses an auction recently held in Arizona. In 2009, a town in Arizona purchased from a dairy farmer his equipment, land, and right-of-way to turn the land into a park. Problems arose after an investigation revealed that the town paid almost 10 times the market value of the assets because it never had an appraisal performed on the land or the equipment. Instead, the town simply paid full replacement value on the land, equipment, and structures on the land.

To repay some of the remaining debt from the sale, the town held an auction with much of the farm’s dairy equipment on the block. Unfortunately for the town, proceeds from the auction were supposed to go to road improvement.

This real-life example drives home the importance of an appraisal. If one had been performed by a Certified Machinery and Equipment Appraiser (CMEA), the town wouldn’t have had to deal with the controversy, and its citizens would now be enjoying some improved roads, which the town now can’t afford to do.

The 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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