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Pay an Appraiser Now or Pay the Consequences Later

January 23, 2013

When it comes to a Certified Machinery and Equipment Appraisal (CMEA), it’s genuinely surprising to find a business owner who will ask “How much will it cost?” Before we address why that’s such a surprising question, let’s answer it. The cost of an appraisal depends on the scope and complexity of the appraisal assignment.

In order to get a rough idea of the scope and complexity of an appraisal, here are some factors to consider:

Number of assets: How many individual units need to be appraised? Is there only one or are there several hundred?
Time: How much time will it take the appraiser to complete the assignment? An appraisal can be quick and simple, or it could take an entire day or even several days. Time is valuable.
Travel: Will the appraiser have a short drive to the site of the appraisal, or will it require significant drive time or even air travel? These costs are difficult to calculate, given the ever-changing cost of gasoline and plane tickets.
Research: How easy will it be for the appraiser to find comparable machinery and equipment (comps) once the initial appraisal is done? An experienced appraiser will usually be able to properly estimate the time required and include it in his or her cost proposal.

“How much will it cost?” is a surprising question because irrespective of the price, the cost of not having one done can be immeasurable. So it costs what it costs. If you need an appraisal, contact NEBBI today!

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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