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Ex-Military Joining the Machinery and Equipment Appraisal Ranks

August 27, 2014

nebbi-militaryThough there are several programs in place designed to help military veterans rejoin the workforce — and others that encourage the hiring of ex-military members — one profession that hasn’t seen an influx of former service members is the machinery and equipment appraisal business.

That’s starting to change, however, as equipment appraisal companies are seeing particular value in training and hiring former military members. The main reason is that their knowledge of specific types of machinery can produce more accurate appraisals.

After all, who knows jets and jet components better than a former member of the Air Force? Who knows ships better than ex-Navy? And specialists who served in all branches can help determine the value of all sorts of unusual and specific equipment that their non-military counterparts would be completely unfamiliar with.

In addition to proudly serving our country, veterans are now learning how they can serve appraisal companies, and the companies are all the better for it.

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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Helping Your Appraisal Business Grow

August 20, 2014

Anyone familiar with this blog knows how much a CMEA can do for their business. Auctioneers can improve their business. Real estate appraisers can add another stream of income to their business. There are also plenty of people a CMEA can approach when trying to expand their business. Consider directing your prospecting toward someone in the following categories.

Bankers and Lenders – When a banker or lender grants a loan, he or she must know that the lendee has enough collateral to repay the loan if it goes into default. CMEAs can tell a lender how much a company’s assets are worth.

Accountants – CMEAs can help an accountant go beyond the book value of a company’s assets by taking into account the rarity and usefulness of an asset and how much it would be worth on the open market.

Attorneys – An attorney with a client going through divorce, partnership dissolution, bankruptcy, or estate planning must know the value of that client’s assets. A CMEA can corroborate the accuracy of the numbers an attorney has in hand.

Business Owners – For tax and planning purposes, a business owner has to know the value of his or her assets. A CMEA is able to help a business owner determine what his or her assets are worth.

If you are not a CMEA but fall into one of the categories of people who need one, look for a CMEA in your area.

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

Putting the “C” in CMEA

August 14, 2014

NEBBI CertifiedWe talk a lot in this blog about how important it is to get a certified appraisal. That’s why we’re always pointing you in the direction of Certified Machinery & Equipment Appraisers (CMEAs). They’ve got “certified” built right into the title, and since CMEA is a designation awarded by NEBB Institute, we’re confident that a CMEA has undergone comprehensive training on the approaches to value, depreciation, value determination, USPAP regulations, and ethics. We’re also sure that a Certified Machinery & Equipment Appraisal submitted by a CMEA will withstand scrutiny by the IRS, courts, CPAs, and others.

But if there are Certified Machinery & Equipment Appraisers, does it stand to reason that there are Uncertified Machinery & Equipment Appraisers? UMEAs? That would just be a terrible title to carry around, so no, there are no UMEAs. There are, however, Machinery & Equipment Appraisers (MEAs).

The MEA designation, though similar to CMEA, is not the same as a Certified Machinery & Equipment Appraiser. An MEA is only authorized to analyze and consult when it comes to a machinery and equipment appraisal.

When it’s time to have your machinery or equipment appraised, don’t take any chances — be sure you’re dealing with a CMEA.

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

 

What to Do with Old Typewriters

August 6, 2014

So let’s say you’re cleaning out your back store room and come across a few old manual typewriters. What’s a business owner to do? Put them out on the curb, right? Not so fast. The best thing to do is call a CMEA and figure out what they’re worth.

According to an recent antiques and collectibles article, manual typewriters are in high demand. Some collectors pay thousands of dollars to add these relics to their collection. And some jewelry makers pry the keys off the typewriters to use in their works of art.

Some electric typewriters are worthless, as are typewriters that were painted. But typewriters made between 1872 and 1930 are collectibles. Ask your appraiser to check the serial number to help determine the typewriter’s age.

The takeaway? Don’t toss ‘em. Failed models and old models are worth a lot, but any model of manual typewriter is worth something to somebody. Call in a specialist to help you figure out what it’s worth.

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

While the Kids Are Away, the Appraisers Will Play

July 30, 2014

NEBBI ClassroomThere’s a long-held notion that when school lets out for summer vacation, the last person out slaps a padlock on the door and it remains empty and silent until classes resume in the fall. But summer is often the busiest time for schools, even if it doesn’t appear so to the outside world.

Summer is when many schools do a lot of upgrading, and the reason is obvious — it’s too much of a challenge to put on a fresh coat of paint, install new lockers in the locker rooms, or make the switch from chalkboards to white boards when there are kids running around all day. In the peace and quiet of summer, schools can get quite a bit done in preparation for September.

Of course, when it’s a case of out with the old and in with the new, something needs to be done with the old. And whether the older desks and bookcases are sold to other schools or donated elsewhere, it’s important to know the value. That way, whether the school is realizing money from a sale or accepting a tax write-off, they’ll have a documented appraisal to back it up.

If you’re a school administrator and you’re in need of an equipment or machinery appraisal, start by contacting the NEBB Institute 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

Depreciation of Machinery and Equipment

July 24, 2014

Different industries assign different meanings to the word depreciation. Accountants say that it’s the allocation of the cost of an asset across its useful life. Depreciation takes into account normal wear and tear over the asset’s life.

Machinery and equipment appraisers, however, assign a different meaning to the term. To appraisers, depreciation is the estimated decrease in value of an asset from its initial purchase price. The estimated decrease is based on a number of criteria, such as physical, functional, and/or economic factors.

From an appraiser’s perspective, even if an asset is 20 years old, as long as it is still functional or still in use, or if there is an active market for it, the asset has value. From an accounting perspective, its worth would be zero, but if the asset owner sold it, it would be worth more than zero.

Because it has different definitions, depreciation can be confusing. If you want to sell an asset or discuss its depreciation, it’s always best to speak to a Certified Machinery & Equipment Appraiser (CMEA).

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

Do-It-Yourself Appraisals Are a Bad Idea

July 16, 2014

NEBI DIYThere are many reasons why business owners hire licensed appraisers to handle their machinery and equipment appraisals. A certified appraisal, which only a licensed appraiser can perform, is not only USPAP-compliant, but it will stand up to scrutiny by peers, the IRS, and the courts. More important than any of that, however, is that a certified appraisal will be accurate and properly represent the value of whatever’s being appraised.

One business owner recently learned this lesson the hard way. Todd Jessep, owner of an Atlanta restaurant, decided to close down the business and retire. He sold off all of the restaurant’s assets, including a massive grill that he’d purchased a few years earlier.

When the equipment appraisal came in, Jessep disagreed with the figure quoted for the grill, and instead of speaking to the appraiser and making his case, simply disregarded the official appraisal report and did his own. The highly inflated numbers tipped off the IRS, and now Jessep’s retirement is on hold as he slogs his way through an ugly audit.

Don’t let this happen to you. If you need an appraisal done, hire a certified appraiser. And if you disagree with any of the numbers, talk it out. It’s a lot easier than talking to the IRS.

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