You asked, we answer!

Appraisals are more than just a simple document that informs you what your equipment is worth. Find out how this robust  document is worth its weight in gold!

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  1. What is ASAA and what does it stand for?

ASAA is the professional organization that Machinery Scope is an accredited member of. ASAA stands for American Society of Agricultural Appraisers

  1. What does USPAP stand for?

USPAP stands for Uniform Standards of Professional Appraisal Practice and is the organization that sets the guidelines for doing professional appraisals.

  1. How does our affiliation with the American Society of Farm Equipment Appraisers benefit our clients?

American Society of Farm Equipment Appraisers is a division within the ASAA. The professional organization provides classes in “Principles of Valuation,” “Advanced Principles of Valuation,” and requires a class on the National USPAP to be taken in order too be a qualified equipment appraiser. With Machinery Scopes extensive experience in the ag industry combined with a the training from this professional organization you are guaranteed an excellent report with accurate values.

  1. Who can benefit most from an appraisal?

  • Farm owners and managers
  • Attorneys
  • Estate or Retirement planners
  • Trust or Estate administrators
  • Lenders
  • Insurance companies
  • Accountants
  • Tax planners
  1. For what reasons would a Attorney, Farm Owner or Estate Planner contact Machinery Scope for an appraisal?

  • Estate, trust, and retirement planning
  • Farm (business) reorganization
    1. Partnerships
    2. Corporations
    3. Equipment holding/leasing companies
  • Divorce settlements
  • Debt reorganization
  • To limit tax liability
  • AND MANY MORE
  1. Are there different types of appraisals?

We perform two different types of appraisals, including onsite and desktop appraisals.

In an onsite appraisal we go to the location of the equipment to gather all of the details needed to be able to provide the most accurate valuation of the equipment. We look at the options on the equipment, take pictures, and formulate a value, based on market trends

We can also perform a desktop appraisal which is a quick and easy way to have a value put on your equipment without ever traveling to the site of the equipment. You provide us the information on the equipment and we will put a value based on current market trends.

  1. How long is my appraisal good for?

Markets are constantly changing so there is no set time that an appraisal is good for. We will evaluate the equipment at the time that is needed for the appraisal. It might be the day we are on site that we set the value. For example If the purpose of the appraisal is for an estate tax return, we may look at market conditions over the last 6 months to get the appropriate valuation.

  1. How often do I have to get a new appraisal done?

There is not a standard that says you need to get an appraisal done at certain intervals, but it may make sense to update your appraisal when there has been some changes taking place. An addition of new equipment, a change in percent of ownership, wanting to leverage some land in order to expand your operation, or a change in purpose of the appraisal may all warrant a new one to be done.

  1. Can I have my appraisal updated instead of having to get a completely new one?

Certainly. Once you have one appraisal done it may be more effective to just keep it updated on a yearly basis. Call us anytime and we can discuss if this option is the right one for your needs.

  1. How do different valuation levels, such as forced liquidation and orderly liquidation effect my appraisal?

There are many levels of valuation within the fair market value. We talk with the client and intended users of the appraisal to see what the goal is for the appraisal. One piece of equipment can have multiple different values depending on what you are looking for. These levels of value are sometimes a moving target depending on the market condition. For instance, in the summer of 2014, the forced liquidation values were higher than the wholesale values. That is not true for the summer of 2015, where the wholesale values are higher than the forced liquidation values. We know the market and have access to the most current data available, giving you the most accurate values and the right valuation for your specific needs.

  1. Will your appraisal stand up to scrutiny in court or any other situation?

We pride ourselves in providing a very detailed report to fit any situation you may run into.

  1. What types of equipment will you appraise?

We will appraise ag equipment and some additional units you may find around the farm such as a couple snowmobiles, ATVs, or vehicles.

  1. What is the difference between an appraisal and an inspection?

In an appraisal, we look at the options on the equipment and the condition of the equipment that can affect its value. In contrast, an inspection is performed by a service tech in order to state the condition of the equipment in much greater detail, but does not place a value to the equipment.

  1. Why choose Machinery Scope to perform my Appraisal?

One might think, if an appraisal is merely an opinion, then anybody should be able to perform an appraisal.  Right?  There are several reasons that make Machinery Scope the right choice.

  • Professional: We are accredited members of the ASAA (American Society of Agriculture Appraisers) and perform our reports per the USPAP (Uniform Standards of Professional Appraisal Practice) standards.  We provide a professionally prepared and bound report that includes an explanation of the type of valuation approach utilized, the intended use of the appraisal, descriptions and appraised value of each piece of equipment, comparable farm equipment used for valuation, colored photos of the equipment, and more.
  • Non-biased: It is very important that there will not be a conflict of interest.  Historically someone may have asked a dealer, an auction company, their bank, and sometimes even a neighbor.  This has the potential to lead to some very difficult situations, especially if the appraisal values end up being disputed by the government or in court.
  • Experts:  We are very knowledgeable in both the areas of farm equipment and appraisal practices.  You can often find people that are experts in one or the other, but it is very difficult to find one who is an expert in both. Remember, part of the definition of an appraisal is “based on supporting facts.”  Our passion is with the ag industry, so it makes it very easy to follow the trends and keep up with the technologies on ag equipment.  There are many benefits to being a part of the ASAA, but the biggest one is the continuing education they provide in order to remain experts in the appraisal field.

Conduct:  Machinery Scope is a company that will work for all clients with honesty and integrity.  This is the only way we will do business.  There is a multitude of reasons for an appraisal and every situation is different.  We will listen to your situation and tailor the appraisal process to your needs.

Be sure to check out our other helpful FAQ’s on our agriculture equipment inspection reports and our extended warranty plans.