Appraisal Definitions

An independent, unbiased opinion of value for machinery, equipment, or tangible assets as of a specific date.

The estimated price at which property would change hands between a willing buyer and seller, neither under compulsion to buy or sell, and both having reasonable knowledge of relevant facts.

The estimated gross amount that could be realized from the sale of an asset, given a reasonable period to find a purchaser, with the seller under compulsion to sell on an "as-is, where-is" basis.

The estimated price that an asset would bring in a sale situation where the seller is compelled to sell quickly, often at public auction.

The current cost to purchase or construct a new asset of equal utility, including installation and freight.

The original purchase price of an asset, less accumulated depreciation, as recorded in the accounting records.

The reduction in the value of an asset over time, due to wear and tear, usage, or obsolescence.

The estimated residual value of an asset at the end of its useful life, before disposal or sale.

The estimated period over which a machine or equipment is expected to be economically usable for its intended purpose.

The recognized ethical and performance standards for the appraisal profession in the United States, maintained by The Appraisal Foundation.

A professional designation granted by the American Society of Appraisers, indicating significant education, experience, and adherence to ethical standards in valuation.

The level of detail, extent of inspection, and methodology used in completing an appraisal assignment, based on the client’s needs and the intended use of the report.