Owning Up to Your Losses

Valuations of Personal and Business Assets

Nature leaves us reeling with a mass destruction of personal and business assets. Many of these assets will not have been accounted for or insured. Those whose lives are affected by disaster and disorder plod the road to recovery. Damaged or lost properties are reconciled to their losses. There was not adequate insurance or there was no insurance. The property owner is in a fix, and realizes that it is up to them or the affected businesses to recreate and begin again.

Those with a legitimate and demonstrated need may have opportunities for assistance from banks, government agencies, relief agencies and private individuals. This won’t happen without evidence. The loser has to make an effort.

Evidence? What did nature take with her? How does an individual or company account for it? Losses range from the miniscule but essential items to hundreds of assets worth millions of dollars in commercial, manufacturing or process equipment?
Examples:
• Auto/Truck Dealerships
• Chemical plants
• Construction sites and rental yards
• Dry Cleaners/Laundries,
• Gas stations,
• Hotels, Motels, Casinos,
• Household furnishings, appliances, personal health equipment,
• Office furniture, fixtures and equipment,
• Oil rigs,
• Manufacturing plants and equipment,
• Marinas, docks, yards, craft.
• Medical/Dental offices and clinics.
• Nursing homes, hospitals and health care facilities.
• Retail stores,
• Refineries,
• Restaurants,
• Transportation companies,
• Ships, barges, ship repair facilities,
Accounting for years of accumulated personal property, from simple household items to large industrial and commercial business assets is a task when it comes to age, model, type, serial numbers, condition etc. Despite total loss of records and documents there is a way to assess your loss.

To begin the process:
• Create the list, from memory if you have to, or from recovered photos or documents of the extent of the loss. Visualize the essential items that were lost and that you need to continue on with your life or your business.
• Evidence is found in accounting and legal records, if available. Evidence may also come from authorities, business banking, loan records, county records, tax assessors, earlier appraisals, customers, friends; relatives.
• Be fair and equitable in the assessment of your losses. Relief agencies tend to be conservative, and they want proof. Also, do not expect to recover value for every knick-knack or memento. Be content to recover the essentials.

Or maybe you have to start from the beginning. What do you need, what will it cost, what is the loan or lease value? What if you don’t know where to start or what values to put on your losses?

Professional appraisers ranging from business intangibles, personal property, machinery and technical valuation, and real estate, are found throughout the U.S. and foreign countries

Losses are accountable; you have options and help to value your loss. Organizations such as the American Society of Appraisers (ASA), the Association of Machinery and Equipment Appraisers (AMEA), the International Society of Appraisers (ISA) and other specialty appraisal societies exist throughout the United States. Society members are found through their appraisal organization headquarters, local appraisal chapters, other appraisers, lawyers, accountants, tax assessors. When in doubt, use an online search engine.

What do you look for in an appraiser: experience and ethics. All professional appraisers follow the Uniform Standards of Professional Appraisal Practice (USPAP).

USPAP is required of all real estate appraisers in the United States. USPAP is not required for personal property or business appraisers, in most states. However, professional appraisers of all disciplines follow USPAP. These standards are the minimum requirements for appraisers in collecting and reporting the values of your properties.

Whoever you find to value your property, it is important that they adhere to the Uniform Standards of Professional Appraisal Practice (USPAP). Ask your potential appraiser, if they follow USPAP. If you don’t understand the concept log on to www.appraisalfoundation.org. You will find USPAP Standards. Find and read the pertinent information; be informed before you ask someone to do your appraisal.

You expect your accountant, your doctor, and your lawyer to be ethical and accountable. Expect the same from your appraiser.

These organizations have directories or online listings of appraisers.
• American Society of Appraisers at: www.appraisers.org
Multi-Discipline from business, personal property, machinery and technical valuations.
• Association of Machinery and Equipment Appraisers at www.amea@amea.org
Machinery and Equipment valuations.
When all else fails, use a search engine to find an appraiser in your area. Be specific to your needs. Bric-a-brac to industrial machinery and equipment; there’s a specialist in all disciplines.