Skip to content

The Importance of an Asset List to Your Certified Machinery and Equipment Appraisal

March 26, 2014

As a small business owner, it’s likely that you’ll need an appraisal at some point in the life of your business, whether you’re selling it, trying to get a loan, or unloading used equipment. When you hire an appraiser, it is helpful to provide him or her with a complete list of the machinery and equipment the appraiser will be working with.

If you’re hiring an appraiser for one of the above reasons, you’ll have enough going on that compiling that list will seem like a lot of work. The alternative is updating the list of all your machinery and equipment on a regular basis. You might update it as equipment comes in or goes out, or you might choose one month every year to update your list.

Keep in mind that an asset list is not the same as a depreciation schedule. An asset list should contain all of the information an appraiser needs to properly value your equipment. Make sure to include the following information about each piece of machinery on your list:

  • Location

  • Client asset number

  • Year of the equipment

  • Make

  • Model

  • Year you purchased the equipment

  • Cost of purchased equipment

  • Current depreciation amount

  • General specifications – i.e., size, weight, etc.

  • General description of the asset

  • Meter count: hours / odometer, etc.

  • Serial number or VIN

  • General item/Property name

  • Location of equipment or machinery

Make sure not to leave anything out! Your appraiser will need a complete basis for valuation, so if there is information missing, your machinery and equipment could be undervalued.

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

 

 

Comments are closed.

%d bloggers like this: