Appraisal review isn't just for appraisers. While attorneys and CPAs may be best served by hiring a trained reviewer for questionable appraisals, they can do an initial pass using a quick checklist of a handful of common appraisal report mistakes. We discuss these errors in great detail in the ARM accreditation classes offered by ASA and they'll of course be included in the appraisal review presentation I'll be sharing at the CalCPA Forensic Services Section Joint Sections Meeting in San Francisco this October.
We're currently working with a speciality harvesting equipment appraisal in the Salinas area that's compiling an asset list for the upcoming equipment inspection. Several conversations and email exchanges regarding how to compile an effective equipment list – in conjunction with some recent interesting inspection experiences – have freshly reminded me of how important a good asset list is to an efficient equipment appraisal, and certainly to asset inspection.
Divorce is never easy. If your divorce involves a business, it's even more complex. We've worked with many attorneys and business owners to provide appraisals for divorces, some more amiable than others. One thing that all of these situations have in common is that by the time our appraisal firm is called in, the divorce process has usually been going on for some time. Our goal in the process is to help finalize the situation so that the parties involved can move on with their lives. We do our best to make the appraisal process as efficient and easy as we can.
Sellers almost invariably overestimate the value of their equipment, according to Hahn. The only way to get an accurate estimate, he adds, is through a professional, industry-specific equipment appraisal, the results of which probably will be surprising to many.
While gauging competency in appraisal review is similar to using a limit gauge in order to determine whether a part is within prescribed limits of tolerance, it's not, of course, that simple. An appraiser's competency depends on a number of factors, ranging from experience with the equipment and its market to the intended use of the appraisal and the analytical method best used to value the equipment.
What would you think if I told you that the value of wine tanks increases annually? That the longer you use them the more they're worth? You'd think I was out of my mind! It just doesn't sound reasonable, does it? How can it be possible that the value of equipment as standard as wine tanks goes up annually? And yet, because of the way that wine tanks are assessed in California, the assessment value for ad valorem taxes often does increase annually whether the value of the tanks actually increases or not. Considering that wine tanks often make up a large portion of a winery's fixed asset value, this unreasonable alleged increase in value can create an expensive problem.
Earlier this year, an Arkansas trucking company became the latest to file a complaint against Navistar in federal court, arising out of the now familiar refrain that Navistar knew its 2010-2013 MaxxForce 11,13, and 15 Advanced EGR diesel engines were defectively designed and would prematurely fail, causing damage to the trucks and economic harm to the trucks' owners and lessees, as well as severely diminishing the value of the affected vehicles.
Appraisers frequently refer to what they do as an "art." And in fact, the word "art" features prominently in the title of a book on appraisal review published by a major appraisal organization. But the practice of referring to appraisals and appraisal review as an "art" can be problematic, especially when we're providing appraisals to the legal community.
Several years ago while serving as equipment appraisal expert witness for the Ophir Fire, I discovered the Wildland Fire Litigation Conference and put it on my appraisal bucket list. Just this year, my schedule finally allowed me to attend the conference. In the intervening years, I've done many equipment appraisals related to insurance loss claims, a number of them for fire loss claims (see below), so I felt prepared. Although the conference is mostly attended by attorneys, a fair number of other experts also attended: mostly in fire science such as cause of action analysis, ignition theory and burn patterns; several vegetation experts representing areas such as noxious weed analysis; and a handful of real property appraisers along with me, the lone equipment appraiser.