In most instances when our clients request a machinery or equipment appraisal it is assumed that a site visit will be part of the engagement.
While site visits are generally part of the appraisal process, under the right circumstances there is a second option. That option is called a Desktop Appraisal.
Desktop Appraisals are USPAP compliant and should be conducted at the same high level of diligence as an appraisal that includes a site visit. The difference is that in a Desktop Appraisal the report text indicates the appraiser relied on client-provided information. Generally, this would include make, model, serial number, hours/miles, and photographs. The final report states that the appraiser relied on client-provided data for making the estimate(s) of value.
The advantages of using a Desktop approach include a reduction of travel-related expenses, efficiency when assets are disbursed across a large geographic area, when there are only a couple items that don’t justify travel, and items to appraise that are not highly sophisticated or difficult to understand such as a tractor or automobile. Using a Desktop approach can oftentimes reduce the fee charged by an appraiser and; thus, be more economical for the client.
A Desktop approach is generally not recommended in instances where there is an IRS dispute, anticipated legal proceedings, and other highly technical situations.
The proper approach to your appraisal needs should be discussed with your certified appraiser. At Brumbaugh Appraisals, we have performed more than 1800 appraisal projects which include both site visit projects and Desktops. If you have questions or would like to discuss a specific situation, please give us a call at 919-870-8258 or contact us through our website at www.brumbaughappraisals.com.