![]() Even if you as the client are the one providing the information – can you really trust yourself to do this objectively when you are interested in the results? They will – consciously or subconsciously – affect the results in their favor. Independence: The person providing information for a desktop is an interested party to the appraisal results. Why would a client ever want to pay more?īecause the benefit of engaging a site visit appraisal often overwhelms the higher fee.īelow are some of the most common reasons clients choose a site visit appraisal: This allows us to work with greater efficiency, serving multiple clients concurrently, and therefore allows us to charge you a lower fee. With a desktop appraisal, we can focus on other revenue-generating assignments up until the time we receive all of the information needed to complete your assignment. It's not like we can focus on other assignments during this time - we're usually on the phone trying to rearrange babysitting and soccer practice pickups. We find ourselves in limbo in a factory lobby, a coffee shop, or an airport bar. Doors are locked hosts run late additional locations must be visited flights are delayed. This exposure necessitates a higher assignment fee.įinally, a site visit always includes some risk of the unexpected. A site visit, on the other hand, puts the responsibility for accuracy mostly onto the appraiser. If an asset is misrepresented (usually, but not always, an honest mistake), or is wrongly included or excluded from the appraisal, the fault lies mostly with the party providing the information. This saves time and expense for us.Ī desktop appraisal also shifts some responsibility for accuracy away from us as the appraiser. With a desktop appraisal, the client and/or business owner provides the information needed to develop credible valuations. The cost difference is a factor of time, expense, responsibility, and risk. Why does a Site Visit Cost More than a Desktop? We note our general impressions of the facilities and maintenance procedures, including any potential red flags which the client may want to investigate further. The inventory includes pictures, condition assessments, primary identifiers (such as make, model, serial, and year), and primary value factors (such as capacities, usage, accessories, and attachments). Assets below this threshold may be described in groups. We inventory all assets above a certain value threshold. Typical site visits for our assignments include the following aspects: For other assignments, a site visit may involve minutely detailed descriptions and photographs of each asset. Defining what constitutes “credible results” is largely at the discretion of the appraiser, as I discussed in my last article about pricing.įor some assignments, a site visit may simply be a walkthrough which allows the appraiser to verify the physical existence of assets. The scope of a site visit is determined by the appraiser as necessary to provide credible results for the assignment. (This is not always a clear definition in the digital age! Does a Facetime walking tour with a client equal a drone flight guided by the appraiser? But those are topics for a future article.) In practical terms, a site visit appraisal means that an appraiser physically saw the assets with their own eyes. In other cases, we avoid the term “inspection” because we don’t want to confuse a valuation inspection with a mechanical, safety, or other type of inspection.įor the sake of clarity we’ll stick to “site visit” in this article. The term “site visit” is often used interchangeably with “inspection.” In some cases, we use the term “inspection” because a client is familiar with it. Specifically, I want to talk about the situations where conducting a site visit will likely result in better outcomes for the client which more than justify the higher fees. (Yes, those are the type of appraisals that cost more than a desktop.don't X out of this window yet!) This article will focus on the benefits of site visits. I previously wrote about the basics of desktop machinery and equipment (M&E) appraisals. However, it is a topic that is worth keeping top-of-mind. Most appraisers who publish content of any type – including myself – have addressed desktop appraisals. Why? Because clients think they will get the same results for a lower fee. The question we are asked most frequently by clients is, without a close second, “Can you do a desktop?”
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