• Detailed Appraisals include onsite inspections to gather specifications of the assets, record conditions, and meet with key company personnel to discuss the unique characteristics of their operation, machinery & equipment and/or inventory. These types of valuations include a detailed listing of the subject property.
• Desktop Opinions are conducted without the benefit of an inspection of the assets. In these instances, we rely upon detailed descriptive information provide by the client and/or company to determine value. To ensure the accuracy and reliability of our findings, we establish whether or not there is enough information to conduct a Desktop Appraisal, before beginning an assignment.

• Updates provide valuable insight to changes that can occur in every industry. The process of updating an appraisal previously conducted by American Dream Appraisal is generally price sensitive and can be done with quicker turnaround times. Clients will often schedule updates in advance at 6, 12 or 24 month intervals to ensure they are utilizing the most reliable, up to date information.
• Prospective Value or residual value analyses estimate the potential future value of assets at a date subsequent to the effective date of an appraisal. This service is useful for lenders who are arranging lease transactions or other long term facilities.

American Dream Appraisal’s Consulting Services helps institutional and corporate clients make informed decisions regarding their assets. These services provide our clients with the critical advice necessary for Mergers & Acquisitions, Ad-Valorem Tax Appeals, Asset Redeployment & Disposition, Litigation, and Business Reorganization. Due diligence ensures reliable opinions that are supported by real data and can withstand intense scrutiny by auditors, financial institutions, regulatory agencies and attorneys.  

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 Appraisal Methodologies

American Dream Appraisal utilizes the three basic appraisal methods to derive value conclusions. These are the Market or Sales Comparison, Cost, and Income Approaches and are described as follows.

Market or Sales Comparison Approach
“A set of procedures in which an appraiser derives a value indication by comparing the personal property being appraised to similar assets that have been sold recently, applying appropriate units of comparison, and making adjustments based on the elements of comparison to the sale prices of the comparable.”

Cost Approach
“A set of procedures in which an appraiser derives a value indication by estimating the current cost to reproduce or replace the personal property, deducting for all depreciation, including physical deterioration, functional obsolescence, and external/economic obsolescence.”

Income Approach
“A set of procedures in which an appraiser derives a value indication for income-producing personal property by converting anticipated benefits into value. This conversion is accomplished either by: (1) capitalizing a single year’s income expectancy or an annual average of several years’ income expectancies at a market derived capitalization rate or capitalization rate that reflects a specified income pattern, return on investment, and change in value of the investment; or (2) discounting the annual cash flows for the holding period and the reversion at a specified yield rate.”

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Machinery and Equipment Appraisal Definitions

Unique circumstances may demand specific definitions not found below.  Many terms are used to describe notions of value.  The definitions offered here are to provide the fundamental concepts and are not the only acceptable definitions, since contracts may dictate a somewhat different notion.  These definitions may be redefined as the purpose and function of the appraisal may dictate as long as the fundamental concept is not altered.  

• Reproduction Cost New is the cost of reproducing a new replica of a property on the basis of current prices with the same or closely similar materials.
• Replacement Cost New is the current cost of a similar new property having the nearest equivalent utility as the property being appraised.
• Fair Market Value is the amount expressed in terms of money, that may reasonably be expected for property in exchange between a willing buyer and a willing seller with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts.  (In the valuation of personal property, this definition must be further defined based on the function and purpose of the appraisal.)
• Fair Market Value in Continued Use is the estimated amount expressed in terms of money that may be reasonably be expected for a property in exchange between a willing buyer and a willing seller with equity to both, neither under any compulsion to buy or sell and both fully aware of all relevant facts and including installation and assuming that the earnings support the value reported.
• Fair Market Value - Installed is the estimated amount of an installed property expressed in terms of money that may reasonably be expected in exchange between a willing buyer and a willing seller with equity to both, neither under any compulsion to buy or sell and both fully aware of all relevant facts.
• Fair Market Value - Removal is the estimated amount expressed in terms of money that may reasonably be expected from an item of property between a willing buyer and willing seller with equity to both, neither under any compulsion to buy or sell and both fully aware of all relevant facts, considering removal of the property to another location.
• Liquidation Value in Place is the estimated gross amount expressed in terms of money which is projected to be obtainable from a failed facility assuming that the entire facility would be sold intact within a limited time to complete the sale.
• Orderly Liquidation Value is the estimated gross amount expressed in terms of money which could be typically realized from a sale, given a reasonable period of time to find a purchaser(s), with the seller being compelled to sell on an as is, where is basis.
• Forced Liquidation Value is the estimated gross amount expressed in terms of money which could be typically realized from a properly advertised and concluded public sale with the seller being compelled to sell with a sense of immediacy on an as is, where is basis.
• Salvage Value is the amount expressed in terms of money that may be expected for the whole property or a component of the whole property is retired from service for use elsewhere.
• Scrap Value is the amount expressed in terms of money that could be realized for the property if it were sold for its material content, not for a productive use.
• Insurance Replacement Cost is the replacement cost new as defined in the insurance policy less the cost new of the items specifically excluded in the policy, if any.
• Isurance Value Depreciated is the Insurance Replacement Cost less accrued depreciation considered for insurance purposes.  

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