When using this approach, appraisers first focus on make, model, age (year of machine), type of sale, and date of sale of the comparable assets. If the make, model, and age of the comparable are equal to the subject asset, the appraiser focuses on specifications or "technical" differences between the subject asset and the comparables, adjusting the value based on the differences. The appraiser should remember that adjustments are made to the comparables, not to the subject property.

Example

Subject Asset:

1997 Haas Model VF-4 Vertical Machining Center; 15 HP, 10000 rpm Maximum Spindle Speed, 32-Position Automatic Tool Changer; with 18" x 52" T-Slot Worktable; and Haas Model VF-4 CNC Control

Comparable Sale Data:

Auction Sales - These comparable sales represent the forced liquidation value (FLV) realized when assets are sold piecemeal, under duress at public auction. It assumes the buyer is responsible for all costs of removal and is purchasing the assets "as is, where is" with no warrantees or representations as to the condition of the assets being made by the seller and that the assets are properly advertised in a commercially reasonable manner.

1996 Haas VF-4 Vertical Machining Center ; 4-axis; with 20 position ATC, BT 40 taper, 10000 max RPM, X 50", Y 20", Z 25", 18" x 52" table, 15 hp high-torque motor, programmable coolant, chip auger

Sold March 2007 - $37,500

This item is the same model, one year older, with a smaller ATC (Automatic Tool Changer), with everything else equal. Therefore, the subject asset should be worth equal to or a little more than this asset's forced liquidation value.

1997 Haas VF-4 Vertical Machining Center; with 32 ATC, 40 taper, wired for 4th axis, 18" x 52" table, table load 3500 lbs, X 50", Y 20", Z 25", work height 4"-29", speeds to 10000 RPM, rapid X-rate 1000 IPM, feed rates to 1000 IPM, Y & X axes, 22 hp hi-torque drive, automatic chip conveyor, programmable coolant, Ridgid tapping, Macro, coordinate scale, brushless servos, quick code, Hi-volt-X-FRMR, floppy disc drive, port, hand held generator

Sold September 2006 - $38,000

This item is the same model and year with everything else equal. Though this comparable is over a year old, market research has indicated the CNC machinery market has been stable to improving over the past year. Therefore, the subject asset should have a forced liquidation value relatively equal to this comparable.

1996 Haas VF-4 Vertical Machining Center; 18" x 52" T-slotted table, 50" X, 20" Y, 25" Z, 29" maximum under spindle, 3500 lbs maximum table load, 7500 RPM spindle, 20 tool ATC, CAT 40 spindle taper, Haas CNC controls, 4th axis ready, through spindle coolant, programmable coolant, quick code, floppy drive, coordinate rotation and scaling, custom Macros, chip conveyor, Rigid tapping, high intensity lighting, 1 MB memory, full enclosure, 20 hp motor and controls

Sold June 2006 - $38,500

This item is the same model, one year older, with a smaller ATC (Automatic Tool Changer), and a larger drive motor (20HP vs. 15HP), with everything else equal. Therefore the subject asset should be worth equal to or a little more than this asset's forced liquidation value.

2001 Haas VF-4 Vertical Machining Center; Haas CNC controls, 18" x 52" table size, 3500 lbs table capacity, 50" X axis, 20" Y axis, 25" Z axis travels, CAT 40 spindle taper, 0 to 7500 RPM speeds, 20 HP spindle drive motor, 24 station side mount tool changer, thru spindle coolant system, programmable coolant nozzle, chip conveyor, work lights, wiring for 4th axis drive, remote jog pendant, rigid tapping, coordinate rotation/scaling, 1 MB memory floppy disc drive

Sold April 2006 - $47,000

This item is the same model, 4 years newer, with a smaller ATC (Automatic Tool Changer), and a larger drive motor (20HP vs. 15HP), with everything else equal. Therefore, the subject asset should be valued less than this comparable based on age for forced liquidation. The discrepancy in drive motor all but cancels out the difference in Tool Changers.

Asking Prices - These represent an asset's "potential" value in a fair market value (FMV) sale. It is the price, expressed in terms of cash or cash equivalents, at which asset(s) will change hands between a willing and able buyer and seller. It is assumed that both the buyer and seller are acting at arm's length in an open and unrestricted market, neither the buyer nor seller is under compulsion to buy or sell, and both have reasonable knowledge of the relevant facts.

1999 Haas VF-4 Vertical Machining Center; with 32 ATC, 40 taper, wired for 4th axis, 18" x 52" table, table load 3500 lbs, X 50", Y 20", Z 25", work height 4"-29", speeds to 10000 RPM, rapid X-rate 1000 IPM, feed rates to 1000 IPM, Y & X axes, 22 hp hi-torque drive, automatic chip conveyor, programmable coolant, Ridgid tapping, Macro, coordinate scale, brushless servos, quick code, Hi-volt-X-FRMR, floppy disc drive, port, hand held generator.

2007 MachineTools.com Asking Price - $51,000

This item is the same model but 2 years newer with everything else equal. Therefore, the subject asset should have a fair market value slightly lower than this comparable.

1998 Haas VF-4 Vertical Machining Center; with 32 ATC, 40 taper, wired for 4th axis, 18" x 52" table, table load 3500 lbs, X 50", Y 20", Z 25", work height 4"-29", speeds to 10000 RPM, rapid X-rate 1000 IPM, feed rates to 1000 IPM, Y & X axes, 22 hp hi-torque drive, automatic chip conveyor, programmable coolant, Ridgid tapping, Macro, coordinate scale, brushless servos, quick code, Hi-volt-X-FRMR, floppy disc drive, port, hand held generator

2007 MachineTools.com Asking Price - $49,500

This item is the same model but 1-year newer with everything else equal. Therefore, the subject asset should have a fair market value relatively the same as this comparable.

It is important to note that when using asking prices as a source for comparable sales, the appraiser should confirm what discounts the dealer will take off the asking price, if the dealer has had any offers, and how long the subject asset has been for sale.