Appraiser: space, opportunity and life

Machinery and Equipment as Personal Property

November 14, 2010 | In: appraisal appraiser, property

Personal Property: object is not permanently attached to real estate, and can be moved, such as machinery and equipment including all rights, interests, and benefits related.

Machinery and equipment are included in specific property types valued on the basis of Depreciated Replacement Cost value, while machinery and equipment not included in specific property types will be assessed on the basis of market value.

Machinery and Equipment Characteristics: Can be moved or move; Depreciation is greater than the depreciation on real property; Objects as a part of one operating unit (in-situ) or invidual to be exchanged (ex-situ); Used in a continuous production, and more than one production period.

Valuation Approach in Machinery and Equipment:

Cost Approach: The estimate the cost of machinery and other equipment which is a replica or the substitution of machinery and equipment are valued and have the usability and quality comparable. Application, The valuer /appraiser should be taken into account the estimated depreciation / obsolesce. Reproduction/Replacement Cost New represents the estimated cost for the reproduction or replacement of an object of valuation, based on local market price on the date of valuation. Estimated Market Value of machinery and equipment is determined by estimating physical depreciation, functional obsolescence and economic obsolescence.

Market Data Approach: The estimated value is obtained through the comparison process transactions of comparable machinery and equipment;

Income Approach: By considering the income and expenses relation with the object and estimate the value through the capitalization process.

2 Responses to Machinery and Equipment as Personal Property


Medical Billing

November 26th, 2010 at 3:30 pm

Valuable info. Lucky me I found your site by accident, I bookmarked it.



December 1st, 2010 at 5:28 am

makes me want to drink alchoholic beverages

Comment Form