What Are the Five Conditions That Your Equipment Can Be Listed As During an Appraisal?
Equipment Certified Appraisers are experts in determining the value of equipment. We are not trained to operate each piece of equipment or inspect each piece of equipment for functionality and condition. We never turn on or run a machine. We rely on the host to provide us with accurate information about the condition of each piece of equipment that we are appraising. The host is the owner/operator of the equipment. The host or the host’s representative, such as an experienced managers, will always accompany an equipment appraiser during a site visit. The appraiser relies on this person report the condition of each piece of equipment as one of the five following categories:
- Very Good (VG)
- Good Condition (GC)
- Fair Condition (FC)
- Poor Condition (PC)
- Scrap Condition (X)
Note that there is not a condition of “Excellent” for Equipment Appraisal.
Here is a description of each condition:
Very Good (VG)
This term describes an item of equipment in excellent condition capable of being used to its fully specified utilization for its designated purpose without being modified and not requiring any repairs or abnormal maintenance at the time of inspection or within the foreseeable future.
Good Condition (GC)
This term describes those items of equipment which have been modified or repaired and are being used at or near their fully specified utilization but the effects of age and/or utilization indicate that some minor repairs may have to be made or that the item may have to be used to some slightly lesser degree than its fully specified utilization in the foreseeable future.
Fair Condition (FC)
This term describes those items of equipment which are being used at some point below their fully specified utilization because of the effects of age and/or application and which require general repairs and some replacement of minor elements in the foreseeable future to raise their level of utilization to or near their original specifications.
Poor Condition (PC)
This term is used to describe those items of equipment, which can only be used at some point well below their fully specified utilization, and it is not possible to realize full capability in their current condition without extensive repairs and/or replacement of major elements in the very near future.
Scrap Condition (X)
This term is used to describe those items of equipment which are no longer serviceable and which cannot be utilized to any practical degree regardless of the extent of the repairs or modifications to which they may be subjected. This condition applies to items of equipment which have been used for 100% of their useful life or which are 100% technologically or functionally obsolescent.