PERSONAL PROPERTY APPRAISAL SERVICES
Personal property is tangible, movable property that is utilitarian, collectible, decorative or a combination of the three. Our appraisal services include the full spectrum of personal property. However, our specialty is machinery and equipment (M&E) appraisals.
Machinery and Equipment (M&E)
Appraisers in this specialty are professionally qualified to evaluate all types of industrial properties; machine shops; refineries; hospitals; communications facilities; transportation equipment; process facilities; construction equipment; office machines; as well as the entire contents of buildings. The M&E appraiser provides estimates of fair market value in use and valuation for ad valorem tax purposes. Additionally, equipment analysis for future and residual values is fast becoming one of the more common assignments for today’s M&E appraiser.
The valuation of M&E is a specialized field within the appraisal profession and requires a unique skill set. At Perspecta, we have developed the skills necessary to meet your equipment valuation requirements, whether they are for insurance or market value purposes. We approach our valuations on a case-by-case basis, considering all applicable variables and using the most appropriate definition of value to meet the valuation needs of our clients.
We complete machinery and equipment valuations for the purposes of:
All reports prepared by Perspecta conform to the Uniform Standards of Professional Appraisal Practice (USPAP) and the ethical standards of the Appraisal Institute. Our personal property appraisers are certified by the National Auctioneers Association (NAA), one of the few appraisal associations recognized by the Appraisal Foundation as providing qualifying education, certification and USPAP compliant personal property appraisal reports.
Graduate Personal Property Appraiser (GPPA)
The professional designation awarded by the NAA Education Institute to qualified property appraisers who meet the educational and experiential requirements of the Institute and who adhere to a strict code of ethics and standards of practice. In order to be designated with the GPPA, appraisers/auctioneer-scholars are required to complete 35 classroom hours, a detailed written appraisal report and proof of at least two affidavits of appraisals. This designation also requires 24 hours of continuing education every three years. All of our personal property appraisers have been awarded this designation.
Definitions of Value
In any appraisal, it is vitally important that both the appraiser and the client understand the definition of value under which the assets will be valued. Our most common working definitions of value include:
No detail is overlooked in a Perspecta appraisal because we follow a regimented process, refined and perfected over time. We begin by assembling an appraisal team. Members are selected based on their experience with the types of assets being appraised. The team then follows these five steps:
Step 1: Data gathering as part of due diligence
When an appraisal involves inventory, Perspecta begins by developing a profile of the company. Team members interview key managers and staff to develop a complete business profile, which can include:
Should the appraisal involve inventory, machinery, equipment or any other asset type, Perspecta’s appraisers will look at the company’s particular industry as well as the macro and micro economic factors affecting it. The team draws upon current information from an extensive array of data sources such as local, state and national governmental agencies, trade associations, vendors, and trade publications. They also consult with industry experts. In the final analysis, Perspecta’s appraisers focus on understanding how market forces and economic conditions will affect asset values.
Step 2: The on-site visit and physical inspection
Virtually all asset appraisals include a comprehensive on-site inspection of the assets being appraised, whether they be inventory, machinery or equipment. Our appraisers look at the age and condition of the assets, evaluate obsolescence, and consider all other factors which could affect marketable value:
The team typically makes a pictorial record of the assets, either by video or photography, to facilitate the sharing of information with other Perspecta experts as part of an appraisal peer review process.
Step 3: Data analysis helps pinpoint true market value
In this critical step, we apply one or more analytical methods to calculate asset value. Depending on requirements, we may use value-in-use (value to owner) or value-in-exchange (value to the marketplace) analysis. We may also apply forced liquidation or orderly liquidation analysis to determine asset value as if liquidation were to occur. In the case of inventory, we often apply quintile analysis in which recovery values are assigned to categories of goods based on the five discounting stages of a typical liquidation.
Step 4: Comparative analysis adds reliability to the appraisal
If hindsight is 20/20, then looking at recent liquidations and auctions of assets similar to those being appraised provides a clearer vision of real marketable value.
Step 5: A peer review precedes the final appraisal
Following a compilation and analysis of all data, the team develops an appraisal draft in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). The team then submits its appraisal document to a group of senior level appraisers, who conduct a peer review. The mission is to challenge all assumptions, confirm the validity of data and approve the final appraisal document, which is then presented to the client. Appraisals can be delivered in printed form or electronically via the internet.