How to Be Equipment Appraiser - Job Description, Skills, and Interview Questions

Oct 17, 2020 / 5 Minutes Read / By Albert

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The demand for equipment appraisers has been on the rise in recent years as more businesses and individuals acquire tangible capital assets. The primary role of an equipment appraiser is to assess the fair market value of a piece of equipment or machinery. As the need for accurate and objective evaluations of equipment has increased, so has the need for equipment appraisers.

This has created a positive feedback loop in which the increasing demand for knowledgeable, skilled appraisers has helped to drive up the value of the services they offer. In turn, this has resulted in more individuals and businesses seeking out the expertise of experienced and qualified equipment appraisers to ensure they receive accurate evaluations and fair market prices.

Steps How to Become

Obtain a college degree in a field related to equipment appraisal. A degree in business, finance, accounting or engineering could be beneficial. Additionally, obtaining a certification or degree in appraisal studies can help increase your knowledge and credibility as an appraiser.
Obtain professional experience in the field of equipment appraisal. Many employers will look for potential appraisers with at least two years of experience in the field. Experience can be gained through internships, apprenticeships or other job opportunities related to appraisal.
Seek out professional organizations that specialize in equipment appraisal. Joining one of these organizations can provide you with many resources that can help you become a successful appraiser. These organizations often offer training, continuing education and networking opportunities.
Become certified as an equipment appraiser. In order to become certified, you must meet certain educational and experience requirements, pass an exam and complete continuing education courses.
Develop a network of contacts in the equipment appraisal field. This network can include potential clients, other appraisers, lenders and equipment dealers. This network can be extremely beneficial in helping you find clients and build your business.

As an Equipment Appraiser, it is important to be skilled and efficient in order to accurately assess the value of a variety of different pieces of equipment. A strong knowledge base regarding the various types of equipment, their purpose and working parts, is essential in order to provide accurate appraisals. the ability to use the latest appraising technology and equipment effectively is also key to success.

Furthermore, having effective communication and customer service skills can help to ensure that customers receive the most accurate and helpful appraisals possible. By possessing these skills and abilities, an Equipment Appraiser can help to ensure that their clients are receiving the most accurate and fair appraisals possible.

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Job Description

Analyze business operations and equipment to develop accurate appraisals for use in financial transactions.
Research industry trends to ensure accurate valuations of equipment.
Research, analyze, and document market values of equipment and assets.
Produce reports and documents related to valuation processes.
Negotiate and review contracts related to equipment appraisals.
Develop appraisals that meet industry and legal standards.
Inspect and document condition of equipment and any existing damage or repairs.
Keep current on market trends, technology, and best practices in the appraisal industry.
Work with clients to understand their asset needs and objectives.
Provide assistance with appraisals to internal personnel when needed.

Skills and Competencies to Have

Knowledge of appraisal and valuation principles and practices
Knowledge of appraisal standards and methods
Knowledge of legal and regulatory requirements related to appraisals
Ability to analyze financial data and make sound decisions
Ability to communicate effectively both verbally and in writing
Excellent organizational and problem-solving skills
Proficiency with computers and related software
Ability to multi-task and prioritize workloads
Excellent customer service and interpersonal skills
Ability to work independently as well as within a team environment

Having the right skill set is essential for any Equipment Appraiser. Having knowledge in accounting, finance, economics, and business law are key factors in order to effectively appraise equipment. Knowing the intricacies of the different types of equipment is also important.

Being a critical thinker and having strong analytical skills are necessary in order to evaluate the condition of a piece of equipment and determine its value. having strong communication skills is essential in order to successfully convey complex information to clients. All of these skills are necessary for an Equipment Appraiser to do their job effectively and accurately.

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Frequent Interview Questions

What experience do you have in the field of equipment appraisal?
Describe a recent equipment appraisal project you completed.
What methods do you use to determine the market value of equipment?
How do you research industry trends for equipment appraisals?
How do you handle difficult conversations with clients?
How do you stay current on industry developments regarding equipment appraisals?
What software tools do you use to conduct an appraisal?
What steps do you take to ensure accuracy in your appraisals?
How do you ensure compliance with legal and regulatory requirements when conducting an appraisal?
How do you ensure confidentiality when dealing with sensitive equipment appraisal information?

Common Tools in Industry

Computer Appraisal Software. A computer program used to accurately assess the value of equipment and other assets. (e. g. ProVal Asset Valuation Software)
Digital Camera. Used to take photos of the equipment being appraised for reference. (e. g. Canon EOS Rebel T6)
Binoculars. Used to observe details from a distance, such as labels or serial numbers. (e. g. Nikon Monarch 5)
Calculator. Used to make quick calculations on the spot so that an accurate estimate can be made immediately. (e. g. Texas Instruments TI-84 Plus)
Reference Manuals. Detailed manuals containing information about the specific type of equipment being appraised. (e. g. Machinerys Handbook)

Professional Organizations to Know

International Society of Appraisers (ISA)
American Society of Appraisers (ASA)
Appraisal Institute (AI)
American Society of Farm Managers and Rural Appraisers (ASFMRA)
National Association of Independent Fee Appraisers (NAIFA)
National Association of Real Estate Appraisers (NAREA)
The Appraisal Foundation (TAF)
The Appraisal Subcommittee (ASC)
International Association of Assessing Officers (IAAO)
Association of Machinery and Equipment Appraisers (AMEA)

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Common Important Terms

Appraisal. The process of estimating the value of a property or asset based on factors such as market trends, historical data, and comparison to similar assets.
Valuation. The process of determining the current market value of an asset.
Asset Valuation. The process of determining the fair market value of a property or asset based on a variety of factors including market trends, historical data, and comparison to similar assets.
Market Analysis. The study of the current market in order to determine the value of an asset.
Market Value. The estimated amount for which an asset would sell in an open market.
Depreciation. The decrease in value of an asset over time due to wear and tear, obsolescence, or other factors.
Salvage Value. The estimated value of an asset after it has been used up or no longer has any economic value.
Liquidation Value. The estimated value of an asset if it were to be sold immediately in the open market.
Fair Market Value. The estimated amount that a willing buyer and seller would agree upon for an asset in the open market.

Frequently Asked Questions

What is an Equipment Appraiser?

An Equipment Appraiser is a professional who conducts appraisals of tangible assets such as plant equipment, machinery, vehicles, and other physical property. The appraiser will assess the fair market value of the equipment and provide an appraisal report.

What qualifications does an Equipment Appraiser need?

Equipment Appraisers typically need to have a bachelors degree in finance, accounting, business management or a related field, along with substantial experience in asset appraisal. Professional certifications, such as the Certified Equipment Appraiser (CEA) credential, may also be required.

What type of information does an Equipment Appraiser consider when appraising equipment?

An Equipment Appraiser will consider a variety of factors when appraising equipment, including age, condition, market demand, replacement costs, and the cost of repairs or upgrades.

What is the purpose of an Equipment Appraisal?

An Equipment Appraisal is used to determine the fair market value of equipment for various purposes such as insurance coverage, financing, leasing, and tax assessments.

What documents does an Equipment Appraiser produce after an appraisal?

After an Equipment Appraisal is completed, the Appraiser will provide a written appraisal report which includes all relevant information regarding the equipment and the appraisal process. The report will also include the appraisal value and a list of assumptions and qualifications.

Web Resources

(PDF) Equipment Appraisal 101: 5 Steps to Machinery and www.academia.edu
Academics in equipment appraiser - Academia.edu www.academia.edu
Associate Machinery and Equipment Appraiser Kellstadt Career ... cmc.business.depaul.edu