1st Dec 2010
Considerations When Choosing a Machinery and Equipment Appraiser
When you have a machinery and equipment appraisal performed, you should be confident that the appraisal values are accurate and are backed by evidence to support them. The three factors listed below can help ensure that your machinery and equipment appraisal report will hold up under scrutiny.
1. Certification – Be sure that the appraiser you choose is a Certified Machinery and Equipment Appraiser (CMEA) – a professional designation for those authorized to prepare and submit an equipment appraisal. Ask for a copy of his/her qualifications and evidence of professionalism and experience in machinery and equipment appraisals. Then you know you’re working with a trained professional. Oftentimes, a non-certified equipment appraisal will not be accepted by governing authorities or withstand scrutiny.
2. Code of Ethics – Your appraiser should comply with the Ethics Rule of the Uniform Standards of Professional Appraisal Practice (USPAP). A CMEA is required to observe a professional code of ethics and comply with regulations mandated by USPAP. CMEAs should promote and preserve the public trust inherent in professional appraisal practice.
3. Certified Machinery and Equipment Appraisal Report – Know what you can expect to see in a qualified equipment appraisal. A CMEA’s comprehensive and detailed appraisal report normally includes photographs, model numbers, serial numbers, and other descriptive information. Values are based on extensive research, personal inspection, and contact with manufacturers and suppliers to determine what machinery and equipment is really worth. A CMEA’s machinery and equipment appraisals are performed to standards set by the requirements of the USPAP, so it can withstand scrutiny by financial institutions, CPAs, courts, and others.