FAQ’s: Inventory & Equipment Appraisals
Why should I use an ASA?
Accredited Senior Appraisers qualify as expert witnesses and are competent in performing appraisals because they have not only taken courses in professional appraisal practice, but have also completed and passed stringent examinations. ASAs have at least 5 years appraisal experience and maintain their accreditation status by renewing every 5 years with the American Society of Appraisers, after passing continuing education and participation requirements. ASAs are required to take a USPAP course every 5 years and are required to comply with USPAP on every appraisal assignment.
Why do I need an appraisal?
Clients purchase appraisals for a variety of uses. In some cases, government agencies, bankruptcy courts, or banks require an appraisal by an independent, third party appraiser. A third party appraisal provides an unbiased opinion of value that is useful for determining sale price, disputing property taxes, determining insurable value, and other uses. Properly performed USPAP-certified appraisals meet the strict requirements of bank lending and tangible personal property tax valuation.
How do I choose a level of value?
The level of value is determined by the use of the appraisal report. Lenders typically request Orderly Liquidation Value and/or Fair Market Value. Florida Tangible Personal Property Tax law requires “just value” (aka Fair Market Value). The For What It’s Worth appraisers will assist you in choosing a level of value that meets your purposes.
What is Tangible Personal Property Tax?
Tangible personal property is everything other than real estate that has value in and of itself. This ad valorem tax is levied against the equipment of a business, or the attachments to a mobile home that is on rental property. Ad valorem taxes on tangible personal property are collected on an annual basis. Collection of the tangible personal property taxes begins November 1st for the tax year January through December. The office of the Property Appraiser establishes the value of the property and the Board of County Commissioners and other taxing authorities set the respective millage rates.
What should I expect in an appraisal report?
The Uniform Standards of Professional Appraisal Practice (USPAP) set the minimum standards for reporting by appraisers in the United States. USPAP standards are also widely recognized by countries throughout the world. USPAP requires specific data collection, methodology, and reporting including reporting the level of value, use of the report, intended users, effective date of the valuation, report date, signature of the appraiser on a certification, and other reporting requirements. A properly written report should be concise and written to the level of valuation knowledge of the client and intended users to clearly address factors that affect value.
What is the difference between a desktop and an inspection appraisal report?
Desktop appraisals do not include an inspection of the subject property. This type of appraisal is typically performed in cases where the property is hypothetical (i.e. work in progress), unavailable for inspection, or when an inspection is not economically feasible. Desktop appraisals can be performed with credibility when sufficient details are available for the appraiser to arrive at sound conclusions of value. Appraisers performing desktop appraisals must still follow all of the requirements of USPAP.
How long does it take to get the finished appraisal report?
The asset list typically determines the time involved for the inspection, research, valuations, and report writing. Generally, the more line items, the longer the appraisal will take. Get your appraisal started early in your decision making process. Appraisals can take anywhere from a few days to months to complete. The first step is to provide your asset list so the appraiser can quote the job. We’ve made it easy for you to attach your list to our quote request form. Just look for the “Click here to request a quote” button at the top of any page.
