How To Prepare For An Equipment Appraisal

For business owners dealing with production and manufacturing, their machine and equipment assets are essential part of the trade. There comes a time when you have to let go of these equipment to get the latest ones. But instead of totally disposing them, it would be best to sell these machineries to businesses who might be needing them.

But you don’t just go and put it on the seller’s market. You need to ensure that you are putting the right price tag to these machineries so you can get the right amount of payment based on the equipment’s condition.

Which is why you need to have a regular plant and equipment valuation for your equipment. An equipment valuation would let you know how the equipment really is based on its condition, depreciation value, and industry standards. It will give you an idea how much is fair market price value so you can offer it to potential buyer at the right price. But you also need to prepare your equipment for appraisal, and here’s how:

  1. Create a list

If you have several equipment that you need to dispose or put up for sale, it would be best to create a list first so you know how many you intend to sell or get rid of. It would help you categorize each equipment and provide the necessary details about the machine. It would be best to be as detailed as possible so the appraiser would be able to put the right value for the equipment. The list should include the date purchased, the model number, the manufacturer details, and any issues that might affect the value of the equipment. It would also be best to include the information about the repairs that have been done.

  1. Repair and replace spare parts

Once you determine the condition of the equipment based on the initial inspection, be sure to schedule a repair and maintenance activity to fix whatever issues that might affect the performance of the machine. Take note of the current fixes that you made and what are the spare parts that you replaced.

  1. Clean your equipment

The aesthetic and look of the equipment is also part of the appraisal. Be sure to clean the equipment thoroughly to make it look a little decent and clean when the inspector take a look at it.

Get more info about equipment valuation here.