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The Importance of Certified Appraisers in Rare or Custom Machinery Appraisals

September 26, 2012
We recently came across a forum post from a family business that was seeking a reputable appraiser for a very specific type of appraisal job for letterpress machinery, which highlights the need out there for reputable, certified machinery and equipment appraisers (CMEAs) who are able to provide an accurate value for somewhat rare equipment.

“Our family has owned and operated a letterpress business since the 1930s. The elder family member who has operated the print shop since the 1980s now wants to retire. Can anyone recommend reputable firms that appraise and/or buy operational letterpress machinery (i.e. linotype machine, ludlow machine, heidelberg press etc…). We are located in the Washington, DC metro area.”

You can see the full post at BriarPress.

This job could be somewhat straightforward appraisal, or it could be a case of equipment that has been modified to fit the needs of the this decades-old business through the years. When a CMEA appraises standard or out-of-the-box equipment, he or she uses a set of common factors to determine the equipment’s worth. These factors include the original purchase price of the equipment, its depreciation, how much wear and tear the equipment has, and its current market value. The process is generally not complicated because with out-of-the-box equipment, the CMEA can compare the piece that’s being appraised to other comparable pieces of equipment, which can help determine the equipment’s value.

The appraisal process gets more complicated when it comes to a piece of machinery that was custom built or extremely rare because there may be few comparables, or none at all. In this case, a CMEA has to look at other factors to determine the value of the equipment. Some of the factors include the original production cost, the value its use brings the company, what it would cost to replace the equipment, and its depreciation schedule, as well as its salvage and scrap values.

Determining the value of rare or custom made equipment is a tricky process that requires an experienced professional with specialized skills. Make sure you work with a certified appraiser when determining the value of a piece of rare or custom equipment so you know the value you get is accurate.

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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