Indianapolis Certified Equipment, Personal Property Appraiser

Machinery & Equipment
Appraisal Services

RogerMillerAppraisal.Com is a full service machinery, equipment, personal property and business asset valuation company. Our certified appraisers are capable of undertaking assignments including machinery and equipment, business assets and personal property throughout the United States. Roger Miller is a member of the Certified Appraisers Guild of America, and holds the CAGA designation.

We offer our certified appraisal services to financial institutions, insurance companies, attorneys, accountants and private individuals. Our appraisal staff is USPAP certified and our reports are in full compliance of there outlined standards, rules and guidelines.

Why Is It Important To Hire A Designated Member of The Certified Appraisers Guild of America?

The Certified Appraisers Guild of America is a professional accrediting organization providing certification of personal property appraisers. With members in all 50 states and 6 Canadian Provinces, the Certified Appraisers Guild of America is North America's # 1 trainer of personal property appraisers. On an annual basis, it trains more personal property appraisers than any other organization in North America. Roger Miller is also a Indiana State Certified Real Estate Appraiser.

Membership Requirements

Each member is required to attend professional training and pass a comprehensive exam before becoming certified. No one is allowed to be a member of the Certified Appraisers Guild of America without completing the certification program. There are no 'grandfathered' or 'Associate' members that have not completed the training and exam. Each member has completed the course work required to be certified by the Guild.

Educational Standards
The training each member is required to complete, includes the uniform standards of personal property appraisal practice and appraisal report writing. Special areas of emphasis in training include Internal Revenue Service appraisal requirements, estate and gift appraisals, charitable donation appraisals, bankruptcy appraisals, insurance appraisals, appraisals for divorce, and casualty loss appraisals.

In addition, each member is required to attend a courtroom expert witness seminar with special emphasis on appraisals for courts and testifying in court. CAGA designated appraisers are bound by the Uniform Standards of Professional Appraisal Practice (“USPAP”) published by the Appraisal Standards Board and the Principles of Appraisal Practice and Code of Ethics.

Valuations can be performed on machinery and equipment for a variety of purposes including:

Accounting Matters
Ad Valorem Tax
Allocation Of Purchase Price
Bankruptcy
Condemnation
Financial Planning
Financing
Gifting Matters
Income Tax
Insurance
Insurance Value
Leasing
Settlement
Transfer of Property

Depending upon the clients needs an appraisal report can be performed for the aforementioned situations. Whether the client is acquiring, insuring, liquidating, replacing, planning or gifting an asset a supportable and defendable value conclusion will be prepared by our knowledgeable staff. We offer Restricted Use, Summary and Self Contained narrative appraisal reports.

Typical machinery, equipment and business assets that require a value estimate are:

Medical/Dental Equipment
Construction Equipment
Office Equipment
Manufacturing Equipment
Restaurant/ Retail Equipment
Agricultural Equipment
Material Handling Equipment
Transportation Equipment
Processing Equipment
Packaging Equipment

There are three (3) basic types of appraisals that can be performed: Restricted Use (Desktop Appraisal), Summary, or Self-Contained Appraisal Report.

A Restricted Use (Desktop Appraisal) report is typically requested by individuals that are somewhat familiar with the asset or group of assets. The Restricted Use Appraisal is a limited report that typically only states the appraisers value conclusion with very limited explanation. Many clients request a Restricted Use Appraisal when time is of the essence. This type of appraisal report is considered the least costly of the three (3) report types. This particular type of report can usually be conducted from the appraisers desk.

A common name associated with the Restricted Use Appraisal is known as a “desk top appraisal”. This type of appraisal can be performed from the appraisers desk relying upon no physical inspection of the assets. The appraiser relies on data furnished by the client including; an itemized list of the subject assets being valued, pictures of the assets, maintenance records, manufacturer, model & serial numbers, original costs, date of acquisition, and any relevant material on the assets.

The appraiser must disclose in the report the actions taken or not taken in deriving the data used to support the value conclusion of the asset. The Restricted Use Appraisal is definitely less expensive than a Summary or Self-Contained appraisal, however it is considered less reliable.

A Summary Appraisal report typically includes the appraiser performing a full physical inspection of the asset and developing all applicable approaches to value if deemed applicable to the asset and appraisal problem. The appraiser can physically see the asset to appreciate the quality, condition and productiveness of the asset.

This particular appraisal will include all market research, assemblage of pertinent data (listing and classifying), listing of appropriate analytical techniques and reporting of knowledge, experience and judgment. This type of appraisal is slightly more costly but the final results are more comprehensive, illustrative and reliable. The Summary Appraisal report is the most frequently requested.

A Self-Contained Appraisal report typically includes the appraiser performing a full physical inspection of the asset, and developing all applicable approaches that pertain to the asset and appraisal problem. The Self-Contained Appraisal report provides all the appraisers data and rationale that was utilized in the development of the appraisal analysis.

All conclusions and data sources are fully disclosed and discussed. The Self-Contained Appraisal is definitely more expensive than the above appraisal types, however it is considerd more reliable.

Depending upon the needs of the client and scope of the appraisal assignment there are multiple terms of reference that should be considered when valuing business assets.

For example, if you are acquiring an asset under no compulsion and under fair marketing terms the Fair Market Value concept would be applicable to this type of transaction. Below are the most typical value concepts recognized in the appraisal industry.

There are three (3) typical approaches to value that should be considered and they are as followed; 1) Sales Comparison Approach, 2) Cost Approach, and 3) Income Approach.

The most recognized approach in valuing machinery and equipment is the Sales Comparison Approach. This approach can be described as prices paid for alternate assets similar in nature to the subject property. Adjustments would then be implemented to the comparable assets to compensate for differences in conditions of sale, marketing time, physical and economic differences and financings arrangements.

The second most common recognized approach to value is the
Cost Approach. This approach starts off with the current replacement cost new of the property then deducting for loss in value caused by physical deterioration, functional obsolescence and economic obsolescence. The logic behind this approach is principle of substitution; a prudent buyer will not pay more for a property than the cost of acquiring a substitute property of equivalent utility.

The least utilized approach to value is the Income Approach. The Income Approach considers value to be presented by the present worth of future benefits derived from ownership, typically measured by the capitalization of a specific level of income. This approach to value may be utilized for machinery and equipment. However, it is seldom used by machinery and equipment appraiser since it is often difficult to determine precisely what portion of the income stream is specifically attributable to the subject.

A qualified machinery and equipment appraiser should be able to develop a credible appraisal report defining any of the below recognized value concepts. Typical machinery and equipment appraisal assignments include manufacturing equipment, transportation equipment, medical equipment, processing equipment, office equipment, construction equipment, industrial equipment and personal property assets.

In situations where the asset is involved in an acqusition or transfer a "Fair Market Value", "Fair Market Value In Continued Use" or Replacement Cost New" value concept would be appropriate. In some cases, these assets are relocated or removed, therefore a "Fair Market Value Installed" or "Fair Market Value Removal" appraisal is necessary.

When an asset or group of assets are involved in a failed business operation a "Orderly Liquidation Value", "Liquidation Value In Place", or "Forced Liquidation Value" appraisal may be appropriate.

Listed below are the most recognized and accepted appraisal concepts. Call RogerMillerAppraisal.Com today to tailor fit an appropriate value concept for your asset or group of assets.

Fair Market Value
The estimated amount, expressed in terms of money, which may be reasonably expected for a property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, as of a specific date.

Fair Market Value in Continued Use
The estimated amount, expressed in terms of money, that may reasonably be expected for a property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of relevant facts, including, installation, as of a specific date, and assuming that the earnings support the value reported. This amount includes all normal direct and indirect costs, such as installation, and other assemblage costs, to make the property fully operational.

Fair Market Value Installed
Is the estimated amount, expressed in terms of money, that may reasonably be expected for an installed property in an exchange between a willing buyer and willing seller, with equity to both, neither under any compulsion to buy or sell and both fully aware of all relevant facts, including installation, as of a specific date. This amount includes all normal direct and indirect costs, such as installation, and other assemblage costs, to make normal direct and indirect costs, such as installation, and other assemblage costs, to make the property fully operational.

Fair Market Value Removal
Is the estimated amount, expressed in terms of money, which may reasonably be expected for a property between a willing buyer and seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of relevant facts, as of a specific date, considering that the property will be moved to another location.

Orderly Liquidation Value
Is the estimated gross amount, expressed in terms of money, that could typically be realized from a liquidation sale, given a reasonable period of time to find a purchaser(s), with the seller being compelled to sell on an “as-is, where-is” basis, as of a specific date.

Forced Liquidation Value
Is the estimated gross amount, expressed in terms of money, that could be typically realized from a property advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an “as-is, where-is” basis, as of a specific date.

Liquidation Value in Place

Is the estimated gross amount, expressed in terms of money, that could typically be realized from a failed facility, assuming that the entire facilitywould be sold intact with a limited time to complete the sale, as of a specific date.

Replacement Cost New
Is the current cost new of a similar new property having the nearest equivalent utility as the property being appraised. Is the estimated amount, expressed in terms of money, which may be expected for the whole property or a component of the whole property that is retired from service for use elsewhere, as of a specific date.

Scrap Value
Is the estimated amount, expressed in terms of money, which could be realized for a property if it were sold for its material content, not for a productive use, as of a specific date.

Salvage Value

The expected residual value of an asset at the end of its economic life span.

Insurance Cost New

Is the replacement or reproduction cost new as defined in the insurance policy less the cost new of the items specifically excluded in the policy, as a specific date.

Insurable Value Depreciated

Is the insurance replacement or reproduction cost new less accrued depreciation considered for insurance purposes, as defined in the insurance policy or other agreements, as of a specific date.

The above definitions were derived from ASA’s Valuing Machinery and Equipment

We have accepted appraisal assignments from clients in Indiana, Ohio, Michigan, Illinois, Kentucky, Wisconsin, Colorado, California, Florida, Utah, New York and Massachusetts.