What is an Appraisal?
Appraisals: What They are and Why You Would Need One
An appraisal is a highly valuable service that will allow your business to understand the true value of your equipment, inventory or overall worth of your company. They are conducted by a certified appraiser who has been specially trained to determine the value of each of your assets. A professional appraiser creates an all-inclusive report for their client that provides their opinion of value at that given point in time. Understanding the total worth of your company or equipment is incredibly valuable and will help your company flourish in the future.
What are the different kinds of appraisals?
There are several kinds of appraisals, so you will want to know which one you need before sitting down with your appraiser. If you are unsure of what type of appraisal you need, feel free to contact us and we can help you determine what you are looking for.
Equipment Appraisal – In an equipment appraisal, an appraiser assesses the working condition, age, maintenance records and any other information that an owner has on hand to determine the monetary value of a piece of equipment. These appraisals typically focus on heavy machinery such as used in construction, industrial and agricultural equipment.
Commercial Assets – These appraisals are very similar to equipment appraisals, but are focused on smaller assets such as industrial kitchen equipment for a restaurant, medical equipment such as an X-Ray or MRI machine, displays and small equipment from a grocery store, and any other general assets or inventory that a company uses on a day to day basis. An appraiser uses similar records to those used in an equipment appraisal to determine the value of the commercial property.
All Asset Appraisal – A company would request an all asset appraisal when they are desiring to know the worth of their business assets. An appraiser will go through and determine the market value of every asset a company has in order to give a reliable view of the assets.
Real Estate Appraisal – A real estate appraisal is typically requested when buying or selling a house or piece of property. It allows an individual to know the true worth of a property in order to determine their asking price or initial offer. (Please note that Miedema Appraisals does not conduct real estate Appraisals)
Why would I need an appraisal done?
An individual may decide to have their equipment appraised if they are wondering the true market value of their assets, looking to sell their equipment or simply if they want to know what their company is worth! Many companies use the information gained from an appraisal to refinance their business or expand their current operations. Appraisals often help when determining insurance rates and can also be used for tax purposes. You may also have an appraisal done to verify your eligibility to work for the State. We have the honor of being a MDOT (Michigan Department of Transportation) approved Pre-Qualification appraiser. This allows us to appraise equipment for construction companies so that they can begin working for MDOT faster. It is a service that we are happy to offer as there are so many construction companies in our area (we are in Michigan after all, where every season is orange cone season!).
How do I pick an appraiser?
When working with an appraiser it is important for you to be aware of their qualifications and specialties. Almost all of our appraisers are ASA (American Society of Appraisers) Candidates, Accredited Members, or Senior Appraisers. It requires a lot of work to be recognized by the ASA so you know that when working with us you are receiving a quality appraisal. An appraisal company like us will pair you with the best appraiser for your assets. All you have to do is tell them what type of assets or equipment you are looking to have appraised! It is always best to work with professional appraisers who have been trained, have certifications and deliver accurate and confidential appraisals.
Appraisals truly allow you to capitalize on the value of your assets and equipment. They allow your company to understand what you are worth, so that you can move forward in your operations confidently. If you have any other questions about the appraisal process, or are interested in having an appraisal done, please contact us here. We can’t wait to help you and your company!