Desktop Appraisals vs. Site Inspection Appraisals: What’s the Difference?
When it comes to understanding the value of your machinery and equipment, an appraisal is a critical step. But in today’s world, not all appraisals look the same. Thanks to advancing technology and shifting industry standards, desktop appraisals have become a popular alternative to traditional in-person appraisals. Each method has its own advantages, depending on your goals, timeline, and the level of detail you need.
What is a Desktop Appraisal?
A desktop appraisal is conducted without the appraiser visiting the on-site location where the items are held. Instead, the valuation is based on available data, such as:
- Public records
- Online listings and photos
- Market research
- Owner-provided information and documentation
Because there’s no site visit involved, desktop appraisals are typically faster and more cost-effective. They’re a great option if you need a general value estimate quickly, or if travel to the location isn’t practical.
Best for:
- Preliminary valuations
- Refinancing or internal decision-making
- Situations where a full inspection isn’t required
What is a Site Inspection Appraisal?
An in-person (or on-site) appraisal involves the appraiser physically inspecting the items. This allows for a more comprehensive analysis that considers details not always visible in photos or documents. For example, an in-person appraisal may reveal:
- Current condition and wear
- Updates, improvements, or defects
- Unique features that impact value
While this method can take more time and comes at a higher cost, it offers the most accurate and defensible valuation, especially important for legal, tax, or insurance purposes.
Best for:
- Legal proceedings
- Insurance coverage
- Buying and selling transactions
- Complex equipment with unique details
Choosing the Right Appraisal for Your Needs
The right choice often depends on the purpose of your appraisal:
- Speed & Convenience: Desktop appraisals offer a quick turnaround.
- Accuracy & Detail: In-person appraisals provide the most reliable results.
- Budget: Desktop appraisals are usually more affordable.
- Complexity: The more unique or specialized, the more valuable an in-person appraisal becomes.
At the end of the day, both methods have their place. A desktop appraisal may serve as a cost-effective first step, while an in-person appraisal can provide the thorough analysis needed for final decisions.
Learn more by contacting our appraisal team HERE.
