Q. How do you derive
the appraisal price of an item (market value)?
Capital equipment can be appraised in one of two
ways. One, "replacement
cost" which factors the dollar cost to acquire an identical
item
deducting for all depreciation, including physical deterioration,
functional obsolescence, and external/economic obsolescence.
Two,
a "Value" approach which uses actual sales data to
derive an estimated current value.
CNP provides
"Fair Market Value"
in its appraisals. This value is not a secondary market retail
price. Secondary market "retail" prices usually reflect factors
such as offered warranty, reputation of the seller, terms, and the
buying audience. We provide, secondary market "wholesale", which is
the price a secondary market broker/dealer would pay for the
equipment - cash in advance, stipulation that the gear was last
known to be working, but not warranted against all defects, and
packaged for shipment.*
Q. How do you derive
cost of an appraisal?
A. CNP
looks at the number of individual line
items to be appraised and the level of difficulty in
deriving good market data. For example, evaluation of a typical
CISCO ENTERPRISE switch or router is relatively easy to do. A
difficult appraisal would be one where there are many different
manufacturers which are 2nd, 3rd, or fourth tier. The
CNP
database and industry contacts are comprehensive and without
peer.
Q. What are the cost ranges for a
custom appraisal?
A. The prices range from
$12.00 up depending on line item density and level of difficulty.
For example, if you have 8 line items, all of which are the same
mainline manufacturer, the price would probably be $21.00. On the
other hand, if you gave CNP
4 line items by very obscure different manufacturers, the price
would be higher. Your estimate would reflect that.
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*The
actual appraisal price is dependent on many factors. One is the
definition of "Fair Market Value". The FMV definition can be
secondary market wholesale (as above) or retail. On larger
appraisals the Client can choose which definition the appraisal
should be targeted to. FMV is affected by equipment condition,
maintenance record, number being sold, recent technology advances,
depth of the secondary market, secondary market demand,
manufacturer re-certification polices, original discount when new,
etc. CNP utilizes historical
records of secondary market brokers, subscription international
broker exchanges, and our 75 years of experience dealing in the
secondary market.
