Factors That Can Affect Your Michigan Equipment Appraisal
We know that as a business owner, if you are looking for an equipment appraisal, you want to get the best value possible. Your equipment, whether we are talking about heavy machinery, farm equipment, manufacturing equipment or even restaurant equipment and supplies, is an important part of your business’s value and can make a difference in everything from a loan application to your taxes. So, it’s important that your certified equipment appraisal is accurate and fully takes into account all factors that affect the value of your business’s equipment.
Equipment Condition
This is probably the most important factor impacting the value of your equipment. Equipment that has been well cared for is more likely to have a higher appraised value. Equipment that is clean, shows few signs of rough use, such as dings, dents and scratches indicate that the equipment has been used as designed and by an operator that was considerate of equipment. Having a nice looking piece of equipment can go a long way in a certified equipment appraisal.
Maintenance Records
This goes hand in hand with the visual condition of your equipment. Keeping good maintenance records for equipment is a great way to increase the appraisal value. These records show that the equipment is properly maintained as is likely to have a longer usable life. These records can also show any necessary repairs, above and beyond normal maintenance that may also be helpful in determining useful life, an important factor in equipment appraisals.
Run Time
This is especially important for heavy machinery, manufacturing equipment, and farm equipment. Most pieces of equipment are intended to be efficient and work well for a particular number of hours. The number of hours for each type of equipment is set by the manufacturer. After equipment has reached this threshold, the likelihood that maintenance and repair issues will occur, increases. High run time for equipment can diminish the value of your equipment during an appraisal. However, if the equipment is in good condition and there are complete maintenance records to accompany the equipment, this impact could be small. Likewise, if your run time is relatively low and your equipment shows a lot of abuse, the value may go down.
New Paint
You might think that putting a fresh coat of paint on a piece of equipment would be a good way to improve its value. It would look nice and it might cover up some dents and scratches– that sounds great, right? Well, a fresh coat of paint can often be a red flag for appraisers. Often times equipment owners will repaint their equipment if it’s low hours, but has been treated badly by their employees or has been in some sort of accident. Covering up scratches, dents and damages with a new coat of paint can actually decrease your equipment appraisal.
Accessories
This is the last thing that can positively improve the value of your equipment. If you have machinery, farm equipment, or manufacturing equipment that comes with or can accept accessories or attachments, having these on hand with the equipment can increase the value of the equipment. Of course, this also depends on the condition of the accessory and if it’s original manufacturer equipment or after-market. Accessories are great, but you’ll see a higher appraisal with original manufacturer equipment over after-market equipment and accessories.
For More Information on Factors That Can Affect Your Michigan Equipment Appraisal
An equipment appraisal can be an important part of running your business, especially if you are looking for a loan or are trying to keep the IRS happy. R Stout Appraisals is your Michigan expert in equipment and machinery appraisals. If you need a certified appraisal from a reliable appraiser in Michigan, we are ready to help. Call us today at (248) 978-8338 to schedule an appointment or to learn more about our appraisal services.