The Process

You want appraisers who are valued for their reputation. You want to trust their integrity and know they’ll give you the highest value service at a cost-effective price. 

As a professionally certified, nationwide appraisal company, Auction Masters has more than 40 years experience with business liquidation and personal property appraisals in Minneapolis. 

Long-time industry experience has given us a deep knowledge of asset values and markets, allowing our team to successfully serve banks, law firms, businesses, insurance companies, estates, finance companies, trustees, and a host of others. 

Your time and money matters. That’s why customers appreciate our fast turnarounds and competitive prices. We aim to exceed our appraisers’ highest standards by diligently following the USPAP requirements.

Reasons for Appraisals

• Business Liquidation
• SBA Requirements
• Business Financing
• Insurance Coverage and Claims
• Bankruptcy
• Tax Purposes
• Mergers
• Obtain Loans
• Estate Settlements
• Real Estate Purposes
• Obtain a Qualified Appraisal Report

Areas of Specialty

• Industrial/Commercial/Businesses
• Heavy Equipment
• Manufacturing
• Printing/Bindery
• Business Liquidation Value
• Medical
• Health Club/Fitness
• Inventories

Valid and Accurate Appraisals

USPAP Products

• Summary Appraisals (in-person, walk-through inspection)
• Desktop Appraisals
• Restricted Use Appraisals

Appraisal Steps

• Client/owner contact and consult
• Asset inspection and documentation
• Data research and analysis
• Identify appropriate market values depending on appraisal purpose and location
• Gather and analyze comparable
• Produce official report

Equipment appraisals are where we shine! Auction Masters specializes in equipment appraisals in Minneapolis as well. We attend to every detail in your unique appraisal situation, giving you an accurate appraisal!

Get in touch with a Minneapolis Business Liquidation and Appraisal Specialist by contacting us appraisals@auctionmasters.com. Schedule your appraisal today!

Why Choose Us?

Valid and Accurate Appraisals

• Integrity
• Competitive Rates
• Quick Turnaround
• 40 Year of market appraisal/auction experience
• CPPA Credentials (Graduate Personal Property Appraisers)
• USPAP Compliance (Uniform Standards of Professional Appraisers Practice)
• Ongoing commercial and industrial exposure, keeping abreast of current values
• Auction Masters is a Nationwide Personal Property Appraisal Company

Approaches and Types of Value

3 APPROACHES TO VALUING ASSETS

Market or Sales Approach

Analyzes sales and offering prices of similar assets to determine the most probable selling price of the asset being appraised. 

Market Approach, also known as Sales Approach, means the asset is still being used in the market. A knowledgeable purchaser can go to the marketplace and buy an existing one. 

Note: Market is considered to be an established means of buying and selling assets through channels including auctions, second hand dealers, public and private sales.

Cost Approach

Measures value of an asset by determining the current cost of the asset and deducting for depreciation, or adding for appreciation, physical deterioration, and/or functional and economic obsolescence. 

Cost Approach means that a knowledgeable buyer will not pay more for an asset than the cost to produce a substitute asset with the same utility as the subject.

Income Approach

Measures value of an asset assuming that value is related to the economic income that the asset can be expected to earn. 

Income Approach is the present worth of future benefits (income) of ownership. It is not usually applied to individual items of personal property since it is difficult, if not impossible, to identify individual income streams.

Types of Value

Fair Market Value

Fair Market Value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts (Treasury Regulation 20.2031-2 (b)). 

The FMV is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell, and both having reasonable knowledge of relevant facts. 

The FMV of a particular item of property includable in the decedent’s gross estate is not to be determined by a forced sale price. Nor is the FMV of an item of property to be determined by the sale price of an item in a market other than that in which such item is most commonly sold to the public, taking into account the location of the item wherever appropriate. 

In the case of an item of property includible in the decedent’s gross estate, which is generally obtained by the public in the retail market, the FMV of such an item of property is the price at which the item or a comparable item would be sold at retail.

Fair Market Value in Continued Use

FMV in Continued Use is the estimated amount, expressed in terms of money, that may reasonably be expected for a property in an 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, including installation, as of a specific date and assuming that the business earnings support the value reported. 

This amount includes all normal direct and indirect costs, such as installation and other assemblage costs to make the property fully operational.

Fair Market Value – Installed

FMV – Installed is the estimated amount, expressed in terms of money, that may reasonably be expected for an installed property in an 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, including installation, as of a specific date. 

This amount includes all normal direct and indirect costs, such as installation and other assemblage costs, necessary to make the property fully operational.

Forced Liquidation Value

Forced Liquidation Value is the estimated gross amount, expressed in terms of money, that could typically be realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an “as is,” “where is” basis, as of a specific date.

Orderly Liquidation Value

Orderly Liquidation Value is the appraiser’s professional opinion of the estimated gross amount expressed in terms of dollars, which the asset could typically realize if exposed for public sale at a properly advertised and professionally managed orderly liquidation at a listed or negotiated price usually within a specified time as of the effective date of the appraisal report. 

Further, the ability of the asset group to draw sufficient prospective buyers to insure competitive offers are considered. All assets are to be sold on a per item basis, in “as is” conditions with purchasers responsible for removal of assets at their own risks and expenses. 

Any deletions or additions to the total package could change the psychological and/or monetary appeal necessary to gain the price indicated.

Salvage Value

Salvage Value is the estimated amount, expressed in terms of money, that may be expected for the whole property or a component of the whole property that is retired from service for possible use elsewhere, as of a specific date.

Scrap Value

Scrap Value is the estimated 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, as of a specific date.

Insurance Replacement Value

Insurance Replacement Value is the replacement or reproduction cost new as defined in the insurance policy less the cost new of the items specifically excluded in the policy, as of a specific date.

Insurable Value Depreciated

Insurable Value Depreciated is the insurance replacement or reproduction cost new less accrued depreciation considered for insurance purposes, as defined in the insurance policy or other agreements, as of a specific date.

Desktop Review

Desktop Review is the appraiser’s professional opinion of a defined value based on materials or information that has been supplied to him and evaluated without the benefit of an actual on-site observation.

 A desktop opinion or review should be subject to an actual on-site observation and appraisal. A desktop opinion or review is used to substantiate the need for an appraisal and should not be used for credit purposes. 

Note: It should be remembered that a desktop opinion or review is a limited appraisal method that may be used to value large amounts of inventories or other assets without actually inspecting each item. The appraiser should remember that this method results in something less than that normally required by USPAP.

In-Place Value

In-Place Value is the appraiser’s professional opinion of the gross dollar amount to be realized in the sale of all of the assets between a willing buyer and a willing seller in the open market assuming that neither party is under compulsion to buy or sell, both being fully aware of all relevant facts. 

This value assumes that the property is being sold “as is, where is” in present condition to a buyer who will maintain these assets in their entirety, in their present location as of the date of this appraisal. 

The In-Place Value takes into consideration the following: A) The Fair Market Value of the assets and B) The convenience and cost saved by being in place, ready to use. The In-Place Value places no value upon financial condition of the owners or good will.

Unofficial Auctioneer Appraisal

Unofficial Auctioneer Appraisal uses our long-term industry experience to estimate the value of your asset in the market. They involve less research than our Full Appraisal and are not admissible in court.

Auctioneer Appraisals are best for individuals looking to understand if their goods are worth selling at an auction, or if other options should be considered.

Contact an Appraiser

Our proven track record helps us stand out from other auction facilitators in Minnesota. Appraisers are available for consultation if you have any questions.

Phone: 763-428-2271

Email: appraisals@auctionmasters.com