Before you decide to liquidate your business or send property to auction, it’s important to know its value so you not only have the knowledge about what your property is worth but can recognize when a bid following an auction or sale is reasonable. Working with an appraiser who understands your goals and knows the various approaches to appraisal analysis will give you an upper hand.
Schneider Industries utilizes current sale comparisons of similar equipment as well as replacement costs when necessary in order to provide you with current market valuation conditions. This translates into the most current and updated equipment valuation reports possible for our clients.
We understand the supply and demand chain of used machinery and its functionality in current market trends. Schneider Industries assists banks, lending institutions, leading corporations, attorneys, accountants, venture capital groups, executives and government agencies. For 20 years, we have worked in the market and evaluated its fluctuations. Today, we combine this cumulative knowledge to provide our clients with the latest technology in our reports. From there, clients can decide whether an auction, a sale, or another approach to asset liquidation is right for them.
APPRAISALS FOR COMMERCIAL & INDUSTRIAL PROPERTY
No matter what kind of equipment or property you possess, it is important to understand the value it has in the market. No two properties are identical, and the value of equipment and machinery may vary as well.
Our staff includes a member of The Association of Machinery and Equipment Appraisers, a nonprofit professional association that accredits and certifies appraisers of machinery and equipment.
Approaches to Appraisal Analysis
- Market Approach – This approach involves the collection of market data pertaining to the subject assets being appraised. Also called the “Comparison Sales Approach”, the Market Approach determines how desirable the assets are in the market and how similar recent sales or offerings have fared in order to indicate a profitable selling price of the assets being appraised. If the appraiser cannot find comparable assets or the sales are not exactly similar, adjustments must be made in order to bring them as closely in line as possible with the subject property.
- Cost Approach – This approach is based on the proposition that the informed purchaser would pay no more for a property than the cost of producing a substitute property with the same utility as the subject property. The appraisal considers the property’s maximum value and the cost the buyer would have incurred if he or she constructed or purchased an asset of equal utility to the subject asset up for appraisal. However, when the subject asset is not new, depreciation of the value means the current cost must be adjusted as of the effective date of the appraisal.
- Income Approach – This approach considers value in relation to the present worth of future benefits derived from ownership and is usually measured through the capitalization of a specific level of income. This approach is the least common approach used in the valuation of machinery and equipment since it is difficult to isolate income attributable to such assets.
Other factors that affect appraisals include depreciation, physical deterioration, and functional obsolescence. Each of these may reduce or alter the asset value, which is why it is important to work with an appraiser who is experienced and knowledgeable about a wide variety of properties.
If you’re searching for appraisals for equipment and inventory, our team can help. Contact Schneider Industries for help today!