Frequently Asked Questions Regarding Equipment Appraisal
Why Do You Need an Equipment Appraisal?
An equipment appraisal may be necessary for a variety of reasons: Lending, Dissolution of Partnership or Marriage, Purchase Price Negotiation, Estate Planning or Settlement, Tax Reporting, and Ad Valorem Tax Appeal are some of the more common reasons for needing an appraisal.
What Are Your Qualifications?
Randy Wagenleitner has been engaged in full-time machinery and equipment appraisal since January 2003. He has experience appraising various types of properties including equipment associated with various nut, raisin, vegetable, tree fruit, and citrus packing and processing facilities, several large Central Valley wineries, many Central and North Coast wineries, and numerous farming operations. He has been professionally educated by the American Society of Appraisers (ASA) and the American Society of Farm Managers and Rural Appraisers (ASFMRA) with whom he has completed over 400 hours of education between the two organizations. His clients have included many large farming enterprises, wine companies, accounting firms, law firms, banks, and institutional investors.
What Will I Get If I Hire You?
If you choose ValueEquip to service your equipment appraisal needs you will receive a professionally prepared, competent, appraisal report that is USPAP (Uniform Standards of Professional Appraisal Practice) compliant. If you are requesting a full inspection of the equipment to be appraised, you will receive representative photographs of all assets as well as descriptions of the assets and a general overview of the industry and related market conditions that may impact the value of the assets. You can be assured that your need for confidentiality and/or trade secrets will be respected. Reports are always considered confidential and we do not share information with anyone without your written permission.
What Does the Appraisal Process Look Like?
The appraisal does not begin until we have a contract signed by both parties. Prior to reaching an agreement on a signed contract we will move through the bidding/quotation process. Often this process is as simple as a quick email to me with a description of the property to be appraised and the purpose of the appraisal. I then reply with my best quote on fee and timing and I begin writing a contract proposal for your review. However, sometimes, due to the complexity of some projects there may be a few more emails and/or phone calls back and forth to discuss your needs prior to the contract phase. As a professional appraiser, it is my job to make sure I am proposing an appraisal product that will fit your need and there is no cost or obligation for you during this bidding/quotation phase. Most of the time my fee is a flat fee that is presented in writing before you agree to proceed. On occasion though, we may need to use a contract fee that is based on time and expenses. Timing of my reports can be as quick as a few days to as long as several months. It is all dependent on the specific project and my current workload at the time of the bid.
There are several things that we need to decide upfront so we can put them in the contract at the outset of the project. This avoids confusion and delays during the process and helps ensure that you have a final product that meets your needs. Other than agreeing on the fee and timing, we need a clear (albeit general) description of the property to be appraised. We also need to know whether we will be presenting a current, retrospective, or prospective date of valuation. We need to know the appraisal client (if other than yourself) and the intended user. The intended user is generally the client, but often times other parties may be listed as intended users. We need to know the function or intended use of the report (see Why Do You Need an Equipment Appraisal?). Lastly, and perhaps most important, we will decide what form of value best fits your appraisal need. A few of those options are Fair Market Value, Fair Market Value in Continued Use, Orderly Liquidation Value, and Forced Liquidation Value.
Assuming we reach an agreement and both sign an appraisal contract (or engagement letter), then the appraisal can begin in earnest. The process is very simple. Generally, I will send a formal information request early in the process and offer dates and times that I am available to perform my physical inspection of the equipment. After seeing the equipment I may have additional information requests. Again, the amount of information I need varies based on the type of equipment and complexity of the assemblage. After my inspection and after I have received all available information I will perform my valuation and present my opinion in a written report. This may take a day or several weeks depending on the size and scope of the project. In some instances I will present you with a draft report for you to review before we produce a final copy. In either case, whether I go straight to final, or begin with a draft, I am always willing to make corrections to my report should I have missed something or if I am given new information to consider.
There are several things that we need to decide upfront so we can put them in the contract at the outset of the project. This avoids confusion and delays during the process and helps ensure that you have a final product that meets your needs. Other than agreeing on the fee and timing, we need a clear (albeit general) description of the property to be appraised. We also need to know whether we will be presenting a current, retrospective, or prospective date of valuation. We need to know the appraisal client (if other than yourself) and the intended user. The intended user is generally the client, but often times other parties may be listed as intended users. We need to know the function or intended use of the report (see Why Do You Need an Equipment Appraisal?). Lastly, and perhaps most important, we will decide what form of value best fits your appraisal need. A few of those options are Fair Market Value, Fair Market Value in Continued Use, Orderly Liquidation Value, and Forced Liquidation Value.
Assuming we reach an agreement and both sign an appraisal contract (or engagement letter), then the appraisal can begin in earnest. The process is very simple. Generally, I will send a formal information request early in the process and offer dates and times that I am available to perform my physical inspection of the equipment. After seeing the equipment I may have additional information requests. Again, the amount of information I need varies based on the type of equipment and complexity of the assemblage. After my inspection and after I have received all available information I will perform my valuation and present my opinion in a written report. This may take a day or several weeks depending on the size and scope of the project. In some instances I will present you with a draft report for you to review before we produce a final copy. In either case, whether I go straight to final, or begin with a draft, I am always willing to make corrections to my report should I have missed something or if I am given new information to consider.
what types of equipment do you appraise?
While I specialize in farming and agriculture related facility equipment, I do have experience in the food processing, manufacturing, construction, aviation, and transportation industries. Over the past 15+ years, I have appraised lots of winery equipment, nut processing facilities, trucking fleets, garbage trucks, greenhouse and nursery facilities, vegetable harvesting and packing operations, and small aircraft. The variety of equipment I have had experience with is actually too numerous to list and I am always up for a new challenge.
What is your service area?
I am available for appraisal services statewide (California); however, I have traveled to Idaho several times for appraisal work and as far as Illinois on one occasion. So I am certainly willing and able to travel out of state for the right project. I have also performed desktop appraisals (an appraisal without performing a physical inspection) for equipment located all over the US. Desktop appraisals can be performed confidently with good data provided by the client or with full disclosure of the limited scope of the assignment.