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Knowledge of Equipment Not Necessary

February 24, 2014

NEBBI EquipmentSo the “E” in CMEA stands for equipment. Does that mean if you’re seeking CMEA certification, you need to know everything there is to know about equipment works? As it turns out, no.

The primary focus of a CMEA is  the appraisal. So regardless of whether a CMEA is appraising medical equipment, construction equipment, a print shop, a restaurant, farm equipment, or any type of equipment with nuts and bolts, what matters is that the CMEA is an expert at determining values on equipment — not how the equipment operates, if it even does. Since there are hundreds of thousands of equipment types — no even counting “shop built” pieces of equipment that are customized by a particular business for their needs — no one could possibly be an expert on all types of equipment.

There are CMEAs who specialize in specific equipment appraisal, but that’s the exception rather than the rule. A real estate appraiser is an expert at determining the value of a property, but does a real estate appraiser know how the walls are built or how the carpet was installed? No, and they’re not required to know. They’re experts at determining the property value based upon their training, knowledge, and experience.

The same concept holds true for a business valuation professional. They’re experts at determining the value of a business, but they don’t necessarily know the specifics of that business or industry. They simply apply appraisal methodology to determine its value.

So if you’re hesitant to seek out CMEA certification because you’re not an equipment guru, don’t be. Sign up for CMEA training 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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