Approaches and Methodologies
Every customer has unique characteristics and needs. At BidItUp, we pride ourselves on tailoring our appraisal services to capture and quantify these attributes. Our experienced team is committed to providing comprehensive, customized solutions for each client, ensuring every appraisal report meets the highest standards of accuracy and reliability.
We offer a variety of valuation methods and approaches to deliver reports that align perfectly with your requirements. From the initial consultation to the delivery of your final report, our goal is to provide exceptional service and support every step of the way.
“Desktop” appraisals imply that BidItUp has not physically viewed the equipment but relies on information and specifications provided by reliable sources, including the client. These appraisals assume that the equipment and all components are in good working order unless stated otherwise.
“Onsite Inspection” appraisals mean that BidItUp has physically inspected the equipment. Our team evaluates both client-provided information and independently gathered details during the inspection. The condition of the equipment is thoroughly assessed and documented, ensuring an accurate valuation.
The American Society of Appraisers defines FLV as: “An opinion of the gross amount, expressed in terms of money, that typically could be realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as-is, where-is basis, as of a specific date.”
This valuation reflects the expected proceeds from a well-advertised auction conducted under current economic conditions. Considerations include location, removal challenges, physical condition, marketability, and buyer interest. Purchasers assume responsibility for asset removal.
The American Society of Appraisers defines OLV as: “An opinion of the gross amount, expressed in terms of money, that typically could be realized from a liquidation sale, given a reasonable period of time to find a purchaser (or purchasers), with the seller being compelled to sell on an as-is, where-is basis, as of a specific date.”
OLV assumes a managed, privately negotiated sale process within six to nine months. Assets are sold piecemeal as-is, and purchasers handle removal. Changes to the asset group can impact the valuation.
The American Society of Appraisers defines FMV as: “An opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date.”
FMV-R considers the cost of removing the property to another location. All assets are sold piecemeal as-is, where-is, with purchasers responsible for removal at their own risk and expense.
FMV-I evaluates the property’s market value in its installed condition, excluding income generated by the business. This limited scope appraisal focuses on current market conditions.
FMV-ICU considers the property’s value assuming continued use within the business and supported by earnings, without external verification.
Replacement Cost New reflects the cost of acquiring a similar new property with equivalent utility, as of a specific date.
Reproduction Cost New represents the cost of creating an exact replica of the property at current prices.
Salvage Value estimates the amount that could be realized for property retired from service for possible use elsewhere.
Scrap Value calculates the amount that could be realized for property sold solely for its material content.
We use three widely recognized approaches to determine value: Market, Cost, and Income. These methodologies are trusted by financial institutions, courts, and businesses worldwide.
Market Approach
This approach evaluates market data and comparable sales to estimate the asset’s most probable selling price.
Cost Approach
This approach estimates value based on the cost of producing a substitute asset with equivalent utility, adjusted for depreciation.
Income Approach
This approach assesses value based on the present worth of future income benefits derived from ownership. It is less common in machinery appraisals due to difficulty isolating asset-specific income.
At BidItUp, we strive to deliver the highest level of expertise and personalized service. Whether your needs involve a desktop appraisal, onsite inspection, or any other valuation type, we are here to guide you through every step of the process.
Experience. Service. Support. Results.