DIFFERENCE BETWEEN APPRAISAL REAL ESTATE - MACHINES - DEVICE

The work of pricing machines, equipment and valuing real estate is similar. However, there are some basic differences:

• Differences in the level of detail of assets to be valued:

The level of detail and the amount of property valued for machines and equipment is often greater than with real estate. When looking at the valuation of complex, high-value assets: with real estate, for example the valuation of a commercial building, the real estate valuator will also look at and analyze the parts of the building. , but when using final pricing techniques, they tend to evaluate the combination of assets (ie using a method to price the commercial building); While the price of machinery and equipment conducts the valuation of a production line, they also review and analyze the components of that production line and estimate the value of each individual item. odd then pile together to come up with an incremental value figure.
Due to the time to price large machines and equipment (production lines)…. Often over time, the cost of pricing of machinery and equipment can be higher than real estate valuations.

• Facility access difference. Selection of valuation methods:

In the market economy, real estate valuation activities in almost all deals gather market evidence to assist them in the valuation process. But for machine and equipment pricing, it is often more difficult for the appraiser to find market evidence of similar transactions; in particular, transaction evidence of specialized production lines, and then need to apply cost-based methods to assess details.