Non-realty components

[Gobears81]

Some banks are entirely unwilling to lend on these items and others want to lend on everything. I found out after a recent appraisal was done (of a property that does not typically sell as a going concern) that the bank expected that the appraisal include non-realty items.

Obviously, we are fine from a licensing standpoint on recognizing allocations for intangibles/personal property items on properties that typically sell as going concerns, but what about appraising business assets on an industrial operation in a warehouse property, as an example? Or an engineering company occupying a professional office building? FWIW, I don't actually plan to take those assignments on, just trying to better convey to these clients why I am not available.

Also, interested in any perspectives from the banking side.

 

[Terrel L. Shields]

Business loans are often treated different from commercial RE loans by banks.

An equipment and machine appraiser is useful for equipment. Farm appraisers often have to include tractors and equipment as a separate line item.

 

[sputnam]

Currently, there is no required licensing for business appraisals. As as credentialed real estate appraiser you are still bound by competency.

 

[JTip]

Sub an M&E (machinery and equipment) appraiser to do the....M&E....add your 'management fee' on top of their fee and staple their report to your report.

Just like the bank wanting flood information. You don't go out and get your feet wet, you pay a fee, click a button to get the map and staple it to your report.

 

[Terrel L. Shields]

I appraise farm equipment and cattle using books and current prices. I used to be pretty good at judging cattle weigths and with published prices, less commission, I could estimate their value. Tractors and farm equipment can be valued using a machineiry guide or generic guides for ones not found in the guides. like this outdated one

https://farmdoc.illinois.edu/assets/management/machinery-costs/tractors_2017.pdf