The Fantasy of Certified Equipment Appraisers
Every now and then litigant asks about our California appraiser licence and certification pursuant to Assembly Bill 527. The regulations of Assembly Bill 527, we explain, were established by OREA (Office of Real estate Appraisers now called the Agency of Real estate Appraisers) and so are only applicable to real estate appraisers. Machinery and equipment appraisers are not susceptible to the regulations of Assembly Bill 527.
Machinery and equipment appraisers are not, therefore, technically certified. We are, instead, accredited. The difference is that a government thing acts as a certifier, while professional organizations provide accreditation Schatting. There is, despite widespread confusion on this point, no certification of non-real est appraisers by the state of California.
This distinction is specially interesting for those of us who are both certified and accredited. As a Certified Public Accountant (CPA) I am certified by the California Board of Accountancy to “certify” financial statements. Many people are under the false impression that the AICPA or the Financial Accounting Standards Board (FASB) certifies CPAs, but in fact, it’s the state when a CPA practices that provides certification.
On the other hand, I am accredited by the American Society of Appraisers as an appraiser devoted to equipment and machinery. This accreditation by a corporation is the standard procedure for all non-real est appraisers. There are, of course, several assessment organizations offering designations to appraisers, such as AMEA, DMEA, and EAANA. When you do your research, however, don’t be surprised when you discover that the ASA designation from the American Society of Appraisers, is the most rigorous and intensive accreditation process in the industry. That’s one reason why ASA accreditation is so respectable by courts and banks. It’s even mentioned in the federal registry!
Still, Google searches for appraisers of manufacturing equipment or farm equipment, for example, are generally more likely to add the words “certified equipment appraiser” than “accredited equipment appraiser. inch And the search engine will find someone for you. It might even find me! Because although I’m not certified, I really do know how search engines work. And I realize anytime a potential client is seeking an avowed equipment evaluation, what see your face would really love is a qualified, experienced, reputable and dependable equipment appraiser.
Unless certification, then, how can you know if your appraiser has the necessary education and experience to reach a supportable opinion of value on your construction equipment or vineyard equipment or the apparatus in your grocery store archipelago?
You can’t go wrong beginning with the IRS definition of a qualified appraiser. You could call this the Rule of 2:
The apparatus appraiser’s assessment designation has been earned from a recognized professional appraiser organization on the basis of demonstrated experience in valuing the type of property which is the designation is given.
In other words, an appraiser has a designation related to experience in appraising equipment and machinery… not in appraising real estate, treasures & jewelry, or fine art.
The apparatus appraiser’s background, experience, education, and membership in professional associations demonstrates that the appraiser is qualified to make evaluations of the type of property being valued.
Rule 2 reminds us that it’s not enough just to have a professional designation. It’s also important that other factors support that designation.
