One of the things an appraiser has to take into consideration when determining the value of a piece of equipment is its location. Each state is governed by its own set of laws that can affect the worth of a piece of machinery or equipment.
Take California, for example, where Present Value has an office. In California, the Environmental Protection Agency (EPA) has placed stringent laws on construction equipment emissions. The full set of regulations and standards can be found here. If a piece of used machinery doesn’t have the proper upgrades required to make it compliant with those laws, a buyer knows that he’ll be responsible for the investment required to make it compliant, and the equipment, therefore, may be worth less. The same piece of equipment in another state that doesn’t have the same emissions laws will not need the same upgrades and could, therefore, have a higher value.
Keep in mind, when choosing an appraiser, the importance of working with a company that understands the complexities involved in determining the value of a piece of machinery or equipment.
