Appraisal Service
Rubber City Machinery Corp can now provide complete certified appraisals from a single machine, or
department, to an entire plant.
Our President, George B. Sobieraj, has received Certified Senior Appraiser (CSA) status from the Equipment Appraisers Association of North America, an organization of which he is a member.
He can give certified appraisals in accordance with the Uniform Standards of Professional Appraisal Practice. (USPAP) His major expertise is in Polymer Processing Machinery, as well as metal forming and machine tools.
Most lending, leasing and insurance companies will only accept appraisals from a qualified, certified appraiser who follows the rigid standards of the appraisal standards board and USPAP.
Feel free to give him a call if a certified appraisal is required by your lender or insurance company.
DEFINITION OF VALUES
MARKET VALUE (FAIR MARKET VALUE)
A professional opinion of the estimated most probable price expressed in terms
of cash in U.S. dollars to be realized for property in an exchange between a
willing buyer and a willing seller, with equity to both, neither being under any
compulsion to buy or sell, and both parties fully aware of all relevant facts as
of the effective date of this appraisal report.
MARKET VALUE - IN PLACE
A professional opinion of the estimated most probable price expressed in terms
of cash in U.S. dollars to be realized for property in an exchange between a
willing buyer and a willing seller, with equity to both, neither being under any
compulsion to buy or sell, and both parties fully aware of all relevant facts,
as installed for intended utilization, as of the effective date of this
appraisal report.
FORCED LIQUIDATION VALUE (AUCTION)
A professional opinion of the estimated most probable price expressed in terms
of cash in U.S. dollars which could typically be realized at a properly
advertised and conducted public auction sale, held under forced sale conditions
and under present day economic trends, as of the effective date of the appraisal
report. Conclusions taken into consideration are physical location, difficulty
of removal, physical condition, adaptability, specialization, marketability,
overall appearance and psychological appeal. Further, the ability of the asset
group to draw sufficient prospective buyers to insure competitive offers is
considered. All assets are to be sold on a piecemeal basis "as is" with
purchasers responsible for removal of assets at their own risk and expense. Any
deletions or additions to the total assets appraised could change the
psychological and or monetary appeal necessary to gain the price indicated.
ORDERLY LIQUIDATION VALUE
A professional opinion of the estimated most probable price expressed in terms
of cash in U.S. dollars which the subject equipment could typically realize at a
privately negotiated sale, properly advertised and professionally managed, by a
seller obligated to sell over an extended period of time, usually within six to
twelve months, as of the effective date of the appraisal report. Further, the
ability of the asset group to draw sufficient prospective buyers to insure
competitive offers is considered. All assets are to be sold on a piecemeal basis
"as is" with purchasers responsible for removal of assets at their own risk and
expense. Any deletions or additions to the total assets appraised could change
the psychological and/or monetary appeal necessary to gain the value indicated.
DESKTOP OPINION
A professional opinion of the appropriately defined value, expressed in terms of
cash in U.S. dollars to be realized by the sale of equipment, in which the
opinion is generated from lists and/or other informational materials supplied to
the appraiser and evaluated without the benefit of an actual on site inspection.
This opinion is not an appraisal and should not be used as an appraisal and is
not recommended for use in credit decisions. A desktop opinion is used to
determine the need for an appraisal or the scope of an appraisal.
APPROACHES TO VALUE
MARKET RESEARCH
One of the three recognized approaches used in appraisal analysis, this approach
involves the collection of market data pertaining to the subject assets being
appraised. This approach is also known as the "Comparison Sales Approach". The
primary intent of the market approach is to determine the desirability of the
assets and recent sales or offerings of similar assets currently on the market
in order to arrive at an indication of the most probable selling price for the
assets being appraised. If the comparable sales are not exactly similar to the
asset being appraised, adjustments must be made to bring them as closely in line
as possible with the subject property.
COST APPROACH
One of the three recognized approaches used in appraisal analysis, this approach
is based on the proposition that the informed purchaser would pay no more for a
property than the cost of producing a substitute property with the same utility
as the subject property. It considers that the maximum value of a property to a
knowledgeable buyer would be the amount currently required to construct or
purchase a new asset of equal utility. When subject asset is not new, the
current cost must be adjusted for all forms of depreciation as of the effective
date of the appraisal.
INCOME APPROACH
One of the three recognized approaches used in appraisal analysis, this approach
considers value in relation to the present worth of future benefits derived from
ownership and is usually measured through the capitalization of a specific level
of income. This approach is the least common approach used in the valuation of
machinery and equipment since it is difficult to isolate income attributable to
such assets.
Depreciation
Defined as the actual loss in value or worth of a property from all causes including those resulting from physical deterioration, functional obsolescence, and economic obsolescence.Physical Deterioration
A form of depreciation where the loss in value or usefulness of an asset is attributable solely to physical causes such as wear and tear and exposure to the elements.Functional Obsolescence
A form of depreciation where the loss in value is due to factors inherent in the property itself and due to changes in design, or process resulting in inadequacy, over capacity, excess construction, lack of functional utility, or excess operating costs.Economic Obsolescence
A form of depreciation, or loss in value, caused by unfavorable external conditions. These can include such things as the economics of the industry, availability of financing, loss of material and labor sources, passage of new legislation, and changes in ordinances.
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