As we have expressed, appraisal is the act or process of developing and communicating an opinion of value. Because the Personal Property (M & E) Appraiser deals with a variety of assets, most which can be moved (contrary to for example real estate land), it is necessary to recognize different premises of value; i.e. Sales Comparison, Cost, and Income. The standard of value is then modified by the premise of value. For example, Fair Market Value – Removed; Fair market Value – Installed, Fair Market Value – in Continued Use. These premises or modifiers can broadly be classified into three categories, distinguished by the asset anticipated use.
All approaches and methods must be considered for the valuation of the asset; i,e, Comparable Sales or Market, Cost, and Income. Those applicable approaches must be developed and those discarded explained as to why discarded, in compliance with the requirements of the Uniform Standard of Professional Appraisal Practice, (USPAP). The proper methodology within the approach is followed to develop the appraisal.
The first step in the valuation of personal (movable) property is to properly develop a detailed inventory including photos of the assets being valued, and its inspection to assess their condition.
Assets can be valued “in place” or “removed to another location”, which may require consideration of removal and transportation costs. All associated costs must be considered when valuing the asset under the premise of removal and transportation.
The market for movable or personal property may be locally, or abroad as supported by the highest and best use analysis performed. The assets may be valued in their “as is” condition or “subject to repairs and modifications” as the case may be. There are many relevant variables to identify, consider and quantify and evaluate qualitatively when valuing personal property.
We at Puerto Rico Appraisers & ConsultantsTM have Certified Personal Property (M & E) appraisers. All our appraisals are prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP), and in particular with Standards 7 & 8 applicable to personal property.
We stand ready to assist you in the valuation of your personal property including Machinery, Furniture, Fixtures, Equipment, Artwork, and the similar.
Please remember that as professional appraisers, licensed and certified, contrary to brokers and sellers, we must be independent, objective, and unbiased and our appraisal reports must be complete, relevant, reliable, and credible.
For free consultation, call on us at Puerto Rico Appraisers & ConsultantsTM, or visit our website at PuertoRicoAppraisers.com for your personal property (M & E) appraisal needs!