How do you determine the value of equipment?

Equipment value is determined by matching the appropriate valuation approach to the assignment purpose and asset type. For medical equipment, the most common method is the market approach, which analyzes recent sales of comparable items.

In some cases, a cost approach may be used, starting with replacement cost new and adjusting for depreciation, obsolescence, and condition. The income approach is less common but may apply to equipment that directly generates identifiable cash flow. Appraisers also consider physical condition, technological relevance, serviceability, and market demand. The final value conclusion reflects how knowledgeable buyers and sellers actually behave in the current market, supported by documented data and professional judgment.

The most common standard of value is fair market value (FMV): the price comparable equipment would bring in an open and competitive market, with neither buyer nor seller under compulsion and both reasonably informed. To reach it, an appraiser weighs manufacturer, model, age, original cost, condition, remaining useful life, and current demand, then supports the conclusion with recent secondary-market sales, dealer listings, and auction results, adjusting for maintenance history, upgrades, and utilization. The result is a defensible value that reflects real-world market behavior, not replacement cost or book value unless the assignment specifically requires it.