Equipment Appraisal FAQs
ASAA is the professional organization that Machinery Scope is an accredited member of. ASAA stands for American Society of Agricultural Appraisers.
USPAP stands for Uniform Standards of Professional Appraisal Practice and is the organization that sets the guidelines for doing professional appraisals.
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.
- Farm owners and managers
- Estate or Retirement planners
- Trust or Estate administrators
- Insurance companies
- Tax planners
- Farm equipment investment decisions
- Estate, trust, and retirement planning
- Farm (business) reorganization
- Equipment holding/leasing companies
- Divorce settlements
- Debt reorganization
- Limit tax liability
- and more!
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.
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
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.
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.
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.
We pride ourselves in providing a very detailed report to fit any situation you may run into.
We will appraise ag equipment and some additional units you may find around the farm such as a couple snowmobiles, ATVs, or vehicles.
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.
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.