Definition: an act of assessing something or someone.
an expert estimate of the value of something.
Now that we’ve taken care of the technical stuff, let’s thoroughly explore the second statement in this definition and what it can mean for your business.
In this article, we’re going to tell a story about Mac and how he came to understand the process of an appraisal, the limited possibilities Mac’s first idea of do-it-himself appraising would have brought him, and critical characteristics Mac found in a high-quality appraiser.
Mac had been the proud owner of a manufacturing company for the last 30 years. Mac was successful as a business owner, but he now saw himself traveling across the United States in an RV with his wife and dog on a long-term vacation.
Over the last three decades, Mac made numerous upgrades to his equipment and facility. He expanded. He bought cutting edge machinery to help his company streamline production.
Mac knew that each piece of his equipment had value. He knew the property and building he owned were also valuable. He figured that his experience in the industry would be enough to determine what his equipment was worth. But, he didn’t know much about real-estate and decided to hire an appraiser to help him determine the value of his property.
While the real-estate appraiser was visiting, he asked Mac about how he planned to value his machinery. Mac assured him that his long history in the industry allowed him to determine what his equipment was worth. He had already went through his entire operation and listed the prices he expected to fetch for each piece of machinery.
The real-estate appraiser pulled a card from his pocket and handed it to Mac.
“Give this guy a call. He may be able to make you a lot more money in this arena than you can make yourself.”
After the appraiser left, Mac took out his phone and researched the man on the card. He found out the fellow was highly regarded and very knowledgeable about a number of industries.
Mac decided to give the man a call.
Frank Aiello answered on the other side. Mac liked him immediately. Frank understood the industry and he walked Mac through his appraisal process in six simple steps.
- He set up a date and time for a meeting at Mac’s property.
- Frank made a complete walk-through of Mac’s facility, inspecting, and documenting his equipment.
- Frank went back to his team and conducted thorough research on the equipment’s market value and created a detailed analysis of what it was worth.
- Frank’s team identified the best markets for selling Mac’s equipment.
- They gathered a comprehensive list of comparable equipment being sold.
- Then Frank returned to Mack with the official report.
Results from the report astounded Mac. Seven machines he valued at $15,000 apiece were actually worth $23,000 in the current market. Another nine pieces of equipment he had listed at $3,000 apiece were demanding $5,000. Frank was even able to give Mac some industry insights on his property that revealed a higher value than the real-estate appraiser had determined!
Before meeting Frank, Mac believed he knew everything about his business. Now he understood that his knowledge was on the production side of things. And he had just gained a massive advantage by hiring a highly trusted appraiser.
To determine the actual value of his equipment by himself would have taken Mac weeks, even months of research and outreach. And though Mac knew a tremendous amount about his industry, how was he going to identify and contact the best prospective buyers for his equipment? Was he going to pick up the phone and start cold-calling manufacturers? No. Frank had been able to identify the best selling opportunities for Mac and could plug him directly into those opportunities.
Mac’s original thought to do-it-himself revealed several pitfalls that he would have never discovered without calling Frank. First, Mac had undervalued the demand of his equipment by nearly $75,000 dollars. He paid Frank a mere fraction of that amount to conduct his professional appraisal!
He learned that as a professionally certified, nationwide appraisal company, Frank’s team had access to an extensive database for discovering equipment comparable to Mac’s that was currently being sold on the market, giving them the most accurate value of Mac’s assets.
And Frank had the marketing system to bring Mac’s selling opportunity to the most highly valued prospective buyers. A feat that would have taken Mac a ton of time and money.
He learned that the 40 years of experience Frank had in business liquidation and personal property appraisals provided him with deep knowledge of Mac’s asset values and his particular market.
Frank and his team had successfully served businesses just like Mac’s, banks, law firms, insurance companies, estates, finance companies, trustees, and a host of other entities. Best of all, equipment appraisals was the arena in which Frank’s team really shined! They actually specialized in business liquidation and equipment appraisals.
Most importantly, Mac was happy to see that his time and money mattered to Frank. Mac read countless reviews from happy customers who wrote about how they appreciated Frank’s fast turnaround and competitive prices. He always aimed to exceed his appraisers’ highest standards by diligently following the USPAP (Uniform Standards of Professional Appraisers Practice) requirements and keeping his GPPA (Graduate Personal Property Appraisers) credentials up-to-date.
Mac had hit a home run with that phone call. His experience with Frank allowed him to discover the critical characteristics that a high-quality appraiser possessed.
Frank’s team worked with honest integrity. Their ongoing commercial and industrial exposure kept them abreast with the most current values. They were trustworthy, diligent, time and cost-effective.
Frank’s team was highly reputable and came with exceptional recommendations. They gave Mac straightforward answers to his questions and addressed his concerns in the most professional manner.
The appraisal process was simple and seamless on Mac’s end. They even provided him with the optimal market for selling his equipment! Mac saw no reason to waste money on a second or third appraisal. Frank had provided him with a detailed, comprehensive report and the most assuring experience possible.
If you’re in a situation like Mac and need your business equipment appraised, call Frank. His company? Auction Masters in Minneapolis, Minnesota. Get your appraisal done right, the Auction Masters’ way. Call today, get appraised, and see the best returns available on your investments.