At times we are often asked to provide an estimated value for tangible assets with our prospective clients telling us, “But we don’t need the full appraisal. All we need is a rough estimate.”
A desk-top analysis is an appraisal performed with no inspection of the subject property. The current edition of the Uniform Standards of Professional Appraisal Practice (USPAP) permits appraisers to perform appraisals with different levels of inspection of the subject property, but of course demanding proper disclosure of those limitations in the appraisal report. Even with this disclosure, the appraiser is not relieved of the responsibility to determine whether adequate information about the subject property is available to develop a reliable appraisal that is meaningful within the context of the appraisal's intended use.
Within this context, MBVG has determined that we can provide a desk-top analysis of tangible assets under certain limited conditions and comply with USPAP. We believe that the critical factors include the intended uses of the appraisal. If you are seeking a ‘cost efficient’ appraisal, contact us, and we will help you determine if the function and purpose of your appraisal is such that a desk-top appraisal can be conducted. Contact Randy Schostag for more information by email, or call 612.240.0309 or 800.303.2889.
REAL ESTATE:
Industrial and commercial real estate is usually unique property and often demands specialized due diligence to arrive at an estimate of market value. In some cases, however, an industrial property may be considered ‘typical’ and located in an industrial park where it may be valued using a desk-top analysis. As such, we may be able to provide you with an estimated value for a fee substantially less than we must charge for a complete analysis in situations where more work is required.
Typical insurance appraisal fees can be reduced significantly using desk-top analyses. Basic information about the improvements, photos, etc. can go a long way to reduce costs of a desk-top analysis for insurance purposes.
Download the Real Estate Information Request List to see the typical information needed to do a real estate appraisal. You can determine what information you already have available before you contact us, thus reducing the work for MBVG.
EQUIPMENT:
You may also discover that your equipment appraisals are candidates for a desk-top appraisal. Depending on the intended use, an accurate list of a plant’s assets with a full equipment description, acquisition dates and costs, and depreciation may be all that we require to perform a desk-top analysis.
An equipment analysis for overall insurance coverage versus proof of loss analysis can be accomplished using a desk-top analysis. Overall equipment values for business allocation purposes can also be candidates for an equipment desk-top analysis.
Download the Equipment Checklist from our site to see the typical information needed to do an equipment appraisal and see what information you have available before you call/email to see what options are available for the assets needing to be appraised and the intended use of the appraisal.
DESK-TOP -VS- COMPLETE APPRAISAL:
The main question for most appraisal users related to desk-top appraisals is “when can I use a desk-top appraisal and when should I be using a complete appraisal analysis”? MBVG believes that the best answer is based on the intended use of the appraisal. In some cases, there is no choice, including when the intended use is for collateral purposes and thus a complete analysis is warranted. However, we believe that when the appraised value is used for general business planning (such as for overall insurance coverage, allocations, or an analysis of multiple similar properties), a desk-top appraisal may be suitable. On the other hand, when a valuation is susceptible to third-party scrutiny or there is the potential of a legal challenge, a complete due diligence analysis is likely necessary.
