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An Auction for Equipment from Years Past

November 30, 2011

We’ve frequently discussed how becoming an auctioneer can add a significant income stream to a certified machinery and equipment appraiser (CMEA). An auction took place today with some very important pieces of antique equipment on the auction block. Some of Thomas Jefferson’s drafting tools were auctioned for nearly $64,000 to someone obviously interested in American history.

An important part of any machinery or equipment auction is the appraisal. Many auction companies claim that they offer appraisal services, but their primary business is the performance of the auction. This means that they do not serve as an independent third party looking out for the best interests of the seller. Auction companies also frequently base their appraisals on past experience, but appraisals like this aren’t USPAP-compliant, which is required by lenders and courts. Making appraisals that are not USPAP-compliant opens the auction company up to liability. Keep in mind that having the machinery and equipment that’s on an auction block evaluated by a CMEA is vital to an auction.   

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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