Present Value: More than an Appraisal Firm

Following up on our press release that went out on Tuesday, December 8, 2009, we’d like to focus a little bit more on some of the characteristics that make Present Value a unique full-service appraisal firm.

While lenders and business owners have many choices when it comes to finding an appraisal company, at Present Value, we pride ourselves on being more than just a company that provides appraisals: we act as a trusted resource for lenders and business owners. We can act as consultants to help guide our clients as they make crucial business decisions, whether it be a lender, looking to conduct pre-loan due diligence or auction assets from a loan default, or a business owner, looking to obtain financing or make an acquisition.

In addition to providing appraisal services, Present Value has the expertise and experience to orchestrate other aspects of these deals. The strength of our services comes from the partnerships that we have developed all across the country. We have the capabilities to bring the right people to the table for whatever our clients’ needs may be, such as auctioneer services or brokerage services. We aim to be problem-solvers for each and every one of our clients, helping them make well-informed business decisions.

Present Value prides itself on its turnkey service offerings, and Present Value is happy to act as a resource for its clients as they cope with past mistakes and look toward improving their processes. Our network of professionals will always deliver the highest quality products, backed by a team of experts in their individual market segments.

By: Present Value

Tags: appraisal, appraisal management company, business decisions, business owners, Business Valuation, lenders, Machinery and equipment appraisal, present value
Posted in Equipment Auctions, Press release, business appraisals, business broker | 1 Comment »

NAPA

The National Association of Professional Appraisers (NAPA) is an organization of appraisal experts who provide economic valuations of real, personal, and intangible property. NAPA members obtain certifications and advanced educational programs in the field of valuation. Present Value LLC is a proud affiliate of NAPA.

NAPA follows the Uniform Standards of Professional Appraisal Practice (USPAP). In addition to USPAP, NAPA requires professional members to prepare appraisal reports in a uniform manner, each containing certain required elements:

• A clear statement of the purpose and scope of the assignment
• A clear definition of the appropriate value
• A description of the methods and techniques used to estimate the value
• A clear description of the property and rights being appraised
• A certification statement that includes the unbiased position of the appraiser
• Supporting evidence (sources and research consulted, comparable sales, or other reasonable evidence)
• A statement of qualifications of the appraiser that specifically states why the appraiser is qualified to perform a particular appraisal assignment

Additionally, there are 10 NAPA membership Rules of Ethics.

1. Members agree to perform their duties as appraisers ethically.
2. Members agree not to set fees on a percentage basis or that are contingent on arriving at a particular value.
3. Members agree not to act as advocates, but as objective estimators of value.
4. Members agree not to appraise a property in which the appraiser has a present or future interest without fully disclosing that fact.
5. Members agree not to advertise or solicit appraisal work through inaccurate, misleading, false, or deceptive claims.
6. Members agree not to misuse their professional status with NAPA.
7. Members agree to respond to an inquiry or complaint notice from the NAPA peer review committee.
8. Members agree to disclose who performed the appraisal and to have each participant who contributed significantly to the assignment sign a certification statement.
9. Members agree that the appraiser is required to possess both the knowledge and experience to perform an appraisal task competently or obtain appropriate assistance.
10. Members agree that an appraisal assignment is a confidential matter and agree not to disclose the nature of the assignment except to the client, a court of law, or NAPA peer review committee.

By: Present Value

Tags: appraisal, associations, napa
Posted in Real Estate Appraisal | 2 Comments »

Things That Appraise in the Night

This story is completely true. It was related to me by the man who lived it, and was first hinted at in the blog “What Exactly Are You Doing, Appraiser?”

Back in March of 2009, a real estate appraiser named Jason received a normal appraisal request. A two-family house, owner unoccupied, get to it when you have a chance. Simple. Jason arranged to pay a visit on a Thursday.

A certified appraiser for a number of years, Jason saw nothing out of the ordinary when he pulled up to the saltbox-style house. It was located on a side street in Danvers, Massachusetts, which history buffs will recall was once a part of the original Salem Village. But nothing unusual about the house. Just a house.

There was a lockbox on the front door. No one had lived there for a while, so this was standard practice. He keyed the code for the lockbox, got the key, and let himself in.

The first thing that struck him was that every single light in the house was on. Sometimes owner unoccupied houses are kept on timers so that it looks like someone is home at night, but Jason was there in the middle of the day. It didn’t make sense.

He stepped in and took out his digital camera to take some photos of the property. The first floor was laid out like a very wide hallway, one room leading straight into the next. At the end, opposite from where he entered, was a doorway that led to an enclosed porch. The stairs to the second floor were just outside the doorway.

There were a few pieces of furniture left behind by the most recent owners, and one of them was a recliner to the far left of the doorway. Jason paid it little notice.

After he finished with the first floor, he passed through the doorway and out onto the porch. He climbed the stairs to the second floor. The layout was identical to the first floor. Jason made his way through, snapping photos and making notes in his notebook.

As he passed the archway between the dining room and the living room, something suddenly pushed him hard from behind, right between his shoulder blades. He whipped around fast and caught movement out of the corner of his eye. His immediate thought was that a cat had been perched somewhere, pounced on him, and then took off. But there was nowhere for a cat to perch, nowhere for a cat to hide. He couldn’t find anything that could have pushed him. He was all alone in the house.

Jason sped through the rest of the second floor. He was supposed to check the attic, but he thought the attic could wait. He was ready to go.

He went back down the stairs in the enclosed porch, headed for the doorway that led back to the first floor. At the foot of the stairs he froze. The recliner he’d seen earlier was now blocking the doorway.

After taking a minute or so to process this, he shoved the recliner aside, sprinted through the house, ran through the front door, and slammed it behind him.

Real estate appraisers can see some strange things, but sometimes they see some really strange things. Buyer beware.

By: Present Value LLC

Tags: appraisal, lockbox, saltbox, strange
Posted in Real Estate Appraisal, Uncategorized | 1 Comment »

Why an Appraisal?

Business owners, lawyers, bankers, bank examiners, and CPAs all ask the same question: “What’s it really worth?”

Figuring out the market value of one’s machinery and equipment requires a professional with specialized skills and the expertise and certification to determine true fair market value, liquidation value, salvage value, or replacement cost. It makes sound financial sense to obtain a credible Certified Appraisal Report that holds up under scrutiny from financial institutions, government agencies, buyers, sellers, shareholders, and partners.

At Present Value LLC, we typically quote our fee based on the amount of capital items (items that had an original cost of $2,000 or more) that will be appraised. These items are typically the ones with the greatest value. Items of less-than-original value are considered support items (shop, electronics, and furniture) and are included in the appraisal in groups at no additional cost to the client.

Example:

XYZ Company provides Present Value with an asset list. After reviewing the list, Present Value determines there are 200 total items with 30 capital items. One hundred seventy of these items are considered support items and will be placed in different groups and given value at no additional cost. The remaining 30 capital items will be appraised individually as line items, i.e., 30 capital items x $90 per capital item = $2,700. The total cost of appraisal is $2,700. When you take into account the expertise behind the creation of a report like this, and the credibility it brings to XYZ Company, that $2,700 is a small price to pay.

For more information or to receive a quote on your next Certified Machinery & Equipment Appraisal, please contact Present Value at 866-466-8555 or visit us at www.presentvaluellc.com

By Present Value LLC

Tags: appraisal, asset list, certified machinery and equipment appraisal, equipment, machinery, present value, report, worth
Posted in Machinery & Equipment | No Comments »