Everything You Need to Know about Equipment Appraisals

Equipment appraisal is a process that involves an assets management company working with third party, non-biased experts in ascertaining property quality and value. In fact, it is a process similar to equipment inspection. Typically, this step is taken so that the company facing liquidation will know how to value their assets for an upcoming auction. Equipment appraisal is therefore essential for manufacturing companies in particular, as they have a lot of equipment and other assets.

Here are some of the qualities of assets that are prioritized during an equipment appraisal:

Quality and Functionality

Functionality is the biggest asset any equipment can possess. This factor determines its value more than any other feature or quality. Equipment appraisal guarantees a full, in-depth, and professional inspection of all assets to determine their true value through a series of stress tests, evaluation of maintenance, examination of daily operation conditions, and more. If all these tests have a good result, it is a good indicator that the machine in question still has optimum functionality.

Usability and Performance

Any equipment can function well initially. However, can it last for more than a decade? With equipment appraisals, experts can ascertain an asset's possible lifespan in order to assess its monetary value. A machine that runs well today may not do well in the next five years because of significant wear and tear. Only a professional equipment appraisal service will be able to determine this accurately.

Pre-Used Complications

Equipment that have a history of repairs or malfunctions may not be completely worthless. Assessors will provide a full summary of the asset's recoverability, the cost it will involve, and its feasibility. For example, appraisers may recommend restoring a malfunctioning but outdated conveyor belt. However, if that conveyor belt has obsolete features, they may decide that it is not worth the trouble.

Once the equipment appraisal is complete, a full summary of the true value of the assets will be provided. Thus, the appraisers guarantee that the sale or auction price is always fair and transparent. Customers can then make their purchases and bids confidently, which will help with asset liquidation significantly.