Scenarios Where You Might Want a Construction Equipment Appraisal

16 August 2021
 Categories: , Blog

As the owner of a construction firm, you of course own or operate multiple different types of heavy equipment every day. You likely also follow a maintenance or repair plan to help maintain as much property value to this equipment as you can. But if your equipment is getting older, do you still know roughly what it is worth? A construction equipment appraiser can help assess the situation and give you an exact figure that you can use to your advantage in a variety of ways. Here are just some of the different situations where you might want to get a construction equipment appraisal done for your company.

You Want an Accurate Assessment of Depreciation for Your Balance Sheet 

Construction equipment depreciates over time and a good accountant will know how to use this depreciation as a write-off on your balance sheet. If it's been a while since you've purchased most of your equipment, there might be some question as to just how much property value your current equipment still retains. By getting an official assessment, you can use this information to your advantage when your next quarterly report comes around or during the next tax season.

You Are Considering Selling Some Equipment or Your Entire Business

Are you thinking about selling off some of your used equipment to fund the purchase of new machinery? Maybe you are even considering a career change and want to cash in by selling off your entire construction firm. Your construction equipment likely makes up a good chunk of your company's current value, and a professional appraisal can allow you to set the price for either your used equipment or the entire firm with confidence. A recent appraisal will also give your potential buyer more confidence about the asking price when it comes time to close the deal and sign on the dotted line.

You Want an Appraisal for Insurance Purposes

Are you looking to renew your insurance policy on certain equipment or shopping around for a new policy? If so, an appraisal can help you verify how much insurance you need to purchase. An independent appraisal can also work in your favor if something ever happens and the insurance company tries to argue that your equipment was no longer worth what you are claiming. Getting construction equipment appraisals every few years can help make sure you carry the right amount of coverage and make getting a payout smoother if that situation ever occurs. Contact a local construction equipment appraiser today to get started.