While gauging competency in appraisal review is similar to using a limit gauge in order to determine whether a part is within prescribed limits of tolerance, it’s not, of course, that simple. An appraiser’s competency depends on a number of factors, ranging from experience with the equipment and its market to the intended use of…Read More
Appraisal Review: Determining Whether an Appraisal is Credible
Appraisal review raises the bar on appraisal reports by providing professional, expert review of how well the report aligns with standards of appraisal practice, including the ability of the intended user to understand the report. Appraisal review, as discussed in a previous post, is a standardized methodology that provides guidelines for adjudging the overall quality of…Read More
The Financial Risks of Flawed Appraisals
A previous post introduced the five qualities of a credible appraisal, and in a perfect world, the equipment appraisal report you’re basing financial decisions on would always adequately address those USPAP-specified qualities. The fact is though, that in this imperfect world many equipment appraisal reports don’t meet the basic requirements of completeness, accuracy, adequacy, relevance,…Read More
When to Worry About the Accuracy of Your Appraisal
An appraisal review or expert rebuttal report is a good choice whenever you feel confused about the methodology used in an equipment appraisal report or uneasy about the qualifications of the equipment appraiser. This could be a report you originally contracted for – or it could be an equipment appraisal report you’ve received from another…Read More
The Difference Between an Appraisal and an Appraisal Review
When clients call our office asking for an equipment appraisal review, I’ve found it’s important to ask them the purpose of the appraisal review. That quickly opens up the discussion about what an equipment appraisal review is and is not. And believe me, not everyone understands the difference between an appraisal (a quantitative analysis) and…Read More
USPAP: Not just for Litigation Appraisals
Litigation support, from an equipment appraiser’s point of view, often seems like a long discussion about what constitutes an adequate appraisal report –– and that inevitably includes explaining what USPAP is and why it’s important. Of course, the benefits of a USPAP report aren’t limited to litigation purposes: professional appraisal standards benefit everyone in every situation for…Read More
Simplify Legal Matters with Shared Experts
Sharing a machinery and equipment appraiser in a legal conflict is an effective way to reduce costs and discord. Shared experts is common in legal proceedings concerning issues like mergers and collateral lending and it’s useful for family law cases as well. Deciding to share an equipment appraiser benefits parties on both sides of a…Read More
How to Read an Appraisal Report
Some folks get their equipment appraisal reports and flip straight to the value amounts. And that’s fine — it’s the final opinion of value, after all, that’s needed for most equipment appraisal purposes — but that value amount doesn’t confirm whether or not you’ve gotten a useful and qualified report: a report that not only provides…Read More
How Will Dodd-Frank Affect Appraisals?
In this guest blog, Robert Podwalny, FASA, gives an overview of the Appraisal Review and Management (ARM) field of the appraisal profession, explaining why appraisal review is needed, what an appraisal review involves, who is qualified to review appraisals, and the opportunities available in this quickly-growing area of the appraisal profession. Substandard Appraisals One of…Read More