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The Importance of Equipment Appraisal for Equipment Fleet Managers

November 28, 2012

A recent article in Equipment World, “Take charge of your equipment appraisal,” discusses why it is important for fleet managers to take an active role when it comes to getting a machinery and equipment appraisal for their fleet assets, and it provides some tips on how to work with both appraisers and get the most of the appraisal process.

As the article points out, it is almost certain that at some point fleet managers will have to have their equipment fleet appraised, and highlights the fact that the outcome of an appraisal might affect a company’s ability to borrow money, obtain bonding, purchase equipment, and even continue to operate and profit.

It’s to your advantage to get an independent third-party appraisal. “You might want to consider contracting directly with the appraiser rather than allowing the lender to determine who is going to do the work. That way, the final document will belong to you and can be used at other lenders when shopping for financing. If the appraiser is under contract with the lender, they might require that you obtain their permission to use the report at another lender. If you do contract with the appraiser directly, make sure that he is approved by all the parties using the appraisal.”

  • Understand the type of appraisal you need, e.g., desktop appraisal or onsite, inspection appraisal, which will depend on what the appraisal is required for.

  • Make sure that you are working with a reputable appraisal, such as a certified machinery and equipment appraiser (CMEA) who works with the Uniform Standards of Professional Appraisal Practice (USPAP). The goal for any appraiser should be to determine an independent and balanced opinion of value for all parties involved in using the appraisal.

  • Make sure that you have equipment lists, job locations, documentation, and maintenance records available.

If you have any questions about getting your fleet appraised or want to find a reputable CMEA, please contact the NEBB Institute.

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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