You worked for years to build your business. You spent countless hours researching the best equipment and even more hours saving for the best. Now, however, you are ready to move on to bigger and better things and want to liquidate your items. You know your stuff is valuable, but do you know how valuable?
The appraisal process for your business equipment isn’t a simple one-sided decision. From the fair market value to the liquidation value, the process can get confusing. However, below we will show you the difference between the processes and how you can choose the best appraiser for your items.
One of the first things to understand is the fair market value (FMV) of your equipment. This is the price associated with the item based on what a knowledgeable and unpressured buyer would pay in today’s market. When selling, it is best to think of the FMV as the goal you want to reach as opposed to the starting point or bottom-line. It is also important to note that the FMV fluctuates regularly and the value today could differ drastically from the value next year.
The other term you need to understand is the liquidation value. This is the price you are most likely to get when there is insufficient time to sell or small exposure to buyers. With this in mind, it is fair to say that the liquidation value is often less than the fair market value. You should consider your liquidation value as your starting point in the selling process.
Now that you have both a starting price and a goal price, it is important to find the right person to determine those values. The right appraiser, aside from the auctioneer, can be one of your greatest assets in the selling process. You don’t want your goals to be unreasonably high, nor do you want to not get enough for your liquidated items. An appraiser will use a comprehensive process to accurately find the right price for your items.
Appraising your items for auction can seem overwhelming. With a little understanding and the help of an appraiser and auctioneer, you can get the best price for your equipment. If you are ready to sell, Backes Auctioneers is ready to help. Reach out to our team today