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When running a business, it is important to have accurate evaluations for the assets you own. The value of these assets can change rapidly and may require an appraisal to keep informed. Appraising assets is a critical part of understanding what you own and its true value. This article looks at the different types of assets that require an appraisal and how AppraiseItNow can help.
Appraisal - What Does It Entail? Real estate appraisal is the process of assessing the value of a property. During a real estate appraisal, a licensed professional inspects the property for features that may affect its value. During the process, the appraiser will take into account the home's location, its size, condition, and other significant characteristics like the number of bedrooms. They will also consider the surrounding area, taking elements like the quality of the local school district, taxes, and the general market into consideration. Once done, the appraiser will compare the real estate to surrounding homes that have recently been sold and come up with an opinion of the home's fair market value. That value will serve as the basis for the appraisal report that outlines their findings. In essence, real estate appraisal is the complex and careful process of determining a property's value in order to assess its potential for mortgage, investment, or sale. The process combines the knowledge base of the appraiser, coupled with comprehensive research regarding the property and its features, to form a fair estimate of its worth.
Need Appraisal. Vehicles of all kinds need appraisals for various reasons. From automobiles used for personal use to heavy-duty tractor trailers and 18-wheelers that are used in the freight and logistics industry, an appraisal is necessary when buying or selling a vehicle. Appraised vehicles might be used as collateral for a loan or a typical real estate transaction, among other reasons. Professional appraisals for vehicles are conducted by state-licensed appraisers who use the Kelley Blue Book or the National Automobile Dealers Association guide in order to determine the fair value of a vehicle. Appraisers not only inspect the vehicle for any wear or damage, they also take into account the year, make, model, options, mileage, and condition of the vehicle. Appraised vehicles may be the subject of a dispute between parties, or for a court case, and it's important to trust only licensed appraisers to provide the best results possible.
& equipment appraisals – what’s included? Machinery & Equipment appraisals are appraisals of assets like manufacturing equipment, IT assets, cars, trucks and boats, agricultural equipment and many other types of tangible business assets. They cover the basic physical condition of the asset, market value, potential repair costs, if any, and its current or estimated useful life. This type of appraisal can also provide an opinion as to the asset’s salvage value and depreciated value. When doing a Machinery & Equipment appraisal, appraisers will inspect what is known as the “four D's”: description, date, depreciation and dollar value. This will all be documented in a comprehensive report about the condition and value of the asset. In some cases, an appraiser may also be called to insure the asset, authenticate its ownership and, in certain circumstances, provide another opinion as to its overall value.
can vary widely in value—why is an appraisal needed? Antiques and collectibles can be tricky to value and many times could potentially be undervalued or misevaluated. An appraisal by an experienced professional is essential to accurately establish the fair market value of these items. An accurate appraisal can provide critical information regarding the current market value of these items, which can help in establishing insurance coverage, resolving disputes, ensuring a fair sale price, determining an estate’s value, or any other purpose. An appraisal can also provide facts about an antique or collectible that would be useful for understanding its provenance, history, or uniqueness. Investing in an appraisal from a reliable, certified professional is the best way to make sure you are accurately valuing antiques and collectibles.
— What are They? Intangible assets are items of value that do not have physical characteristics and are not liquid. They can be as valuable as real estate or as simple as intellectual property. Examples of intangible assets include trademarks, copyrights, patents, trade secrets, software, customer loyalty, brand equity, and goodwill. When owning a business, all of these assets must be taken into consideration. Although intangible assets are not physical, they still represent some of the most valuable aspects of a business. Trademarks protect the branding of the business, while copyrights protect work produced by the business. Patents give the business exclusive rights to a product while trade secrets give the business a competitive edge. Software is another intangible asset in the modern age, granting access to technological advancements. With the right software and tools, businesses can make great strides in terms of efficiency and profitability. Brand equity and customer loyalty are only gained over time with quality products and services. Goodwill, or “the expectation of continued patronage”, arises when a company has reliable performance and an outstanding reputation. It is important to consider and take account of intangible assets when appraising business value or selling a business. Professional appraipers can help evaluate each of these elements to get an accurate assessment of a business's worth.
- What are they and how do they need to be appraised? Stocks and bonds are two of the most common forms of business investment. A stock is when a company issues a piece of its ownership in exchange for money, while a bond is a loan that is issued by the company in exchange for interest payments. Appraisal of stocks and bonds can help a business understand the true worth of these investments. A professional appraiser can analyze things like the company's financial stability, creditworthiness, and historical stock performance to determine the worth of the company's stocks and bonds. With this information, investors and business owners can determine the true value of the stocks and bonds. Appraisals of stocks and bonds can also help to eliminate potential risks associated with the investments. They can help to ensure that investors are not buying into a company at too high of a cost or taking on too much risk with their investments. An appraisal can also help to identify any fraudulent activity or misrepresentation of stock or bond values. By properly appraising stocks and bonds, a business can ensure that their investments are safe and productive.
- What type of appraisals should be conducted? Merchant accounts (also referred to as merchant services) handle the process of credit and debit card payments for businesses. It is important for businesses to keep track of their merchant accounts and ensure the system is optimized to benefit both customer and business. Appraisal of merchant accounts help ascertain the current value of merchant accounts to the business in a timely manner. Businesses should consider an appraisal of their merchant accounts both when starting out and also on an ongoing basis. This appraisal should assess and estimate the value based on the unique financial position of the business. An appraisal of a merchant account should include analyzing the current market value and operational efficiency of the account. Additionally, appraisers should analyze the creditworthiness of the business, the organizational structure, payment processing gateways, the ability to add or subtract features, and any potential pricing or other questions. When conducting the appraisal, businesses should seek expert guidance from an appraisal company that understands all the components involved in evaluating merchant accounts and any potential risks. Furthermore, the appraisal should include a detailed report outlining the findings and conclusions with a unique valuation figure to illustrate the current value of the merchant account.
Appraisals—What Are They and Why Do They Matter? Jewelry appraisals provide accurate appraised values of jewelry items, making them a key part of any sound financial plan. From buying and selling to estate planning, life insurance, and divorce proceedings, jewelry appraisals are essential. An appraisal consists of a full description of the item, including metal type, weight, age, cutting and any other pertinent characteristics. The appraiser also considers the item’s condition, market trends, antique value, and more. Plus, the appraiser assesses the piece’s market price based on comparable jewelry in the industry. After a comprehensive appraisal, the appraiser assigns a value to the jewelry piece, giving the owner the ability to make informed decisions related to it. Jewelry appraisals are especially important for owners that plan to buy or sell a piece of jewelry or use it as collateral for a loan. Jewelry can also be part of a retirement planning decision or an estate asset. A knowledgeable appraisal by a certified appraiser helps ensure that the owner is appropriately compensated if the jewelry is sold, loaned, or given away. Getting a certified appraisal done for your jewelry can provide peace of mind and financial security. With updated appraisals, you can make sure your jewelry pieces are accurately evaluated and ensure you get an accurate return when you sell or use it as collateral.
: What items are included in art appraisal? Art collections can be extremely valuable, both financially and aesthetically, so it's important for businesses to know what items are included in an art appraisal. Generally speaking, any piece of visual artwork can be appraised. This includes prints, photos, drawings, paintings, sculpture, and so on. Additionally, a variety of decorative art items like ceramics, glass, and antique furniture can also be assessed. An appraiser will take into consideration the condition of the artwork, its age, material, maker, provenance, and any other unique characteristics. Furthermore, the appraiser will research the art’s market values and the latest trends to provide an accurate appraisal of its worth. An appraisal of a business’s art collection will help ensure that all of your artwork is being properly protected and safeguarded against damages or theft.
- What Are They and Why Do They Need an Appraisal? Remediation assets refer to property or assets that have been affected by a toxic agent, such as hazardous materials, and must be monitored, treated, and/or restored in order to remain safe and compliant with local and/or federal regulations. Owning remediation assets can be expensive and complicated, so it’s important to know exactly what you’re getting into and how much the assets are worth. An appraisal can help you determine the value of the assets so that you don’t overpay for the property. An appraisal can also provide an accurate assessment of the condition of the property and make sure all regulations are being met for the safety of the people living or working on or near the property. These appraisals will also provide a better understanding of the potential risks an investor may face if they choose to purchase the contaminated property.
Overall, there are a wide variety of assets that need to be appraised to properly understand their monetary value. From real estate and vehicles to stocks and bonds, AppraiseItNow offers all types of appraisals with certified appraisers across the US. As your business continues to grow, make sure you have the right evaluations in place to understand the true market value of your assets.