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You Want Me to Appraise Your What?

July 24, 2013

One of the real challenges a Certified Machinery and Equipment Appraiser (CMEA) faces when they’re called out to an inspection is finding a piece of machinery or equipment they’ve never encountered before. There are generally two scenarios when this happens — when an item is custom-made (or customized), and when an item is rare.

NEBBI Steam EngineTake, for example, a 19th-century steam engine. While it may be a marvel to behold and a piece of living history, there aren’t many other 19th-century steam engines out there for comparison’s sake. The same holds true for a standard one-speed conveyor belt that’s been adjusted so that it runs at different speeds. Unless there are plenty of customized multi-speed conveyor belts out there, an appraiser is going to have a tough time putting value on it.

Of course, the rise of the Internet has made it a little easier for appraisers to find comparable pieces of machinery and equipment, but even so, if something is one of a kind, a CMEA has to look at other factors to determine the value.

So what kinds of values can an appraiser look at in situations like this? With enough time and research, they may be able to determine the original production cost of the item, the value its use brings the company, what it would cost to replace it, and its salvage and scrap values.

But determining the value of rare or custom made equipment is a tricky process that’s best left to the professionals. Be sure to work with a certified appraiser when determining the value of a piece of rare or custom equipment so you get the most accurate value.

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

photo credit: SnaPsi Сталкер via photopin cc

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