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Condition Statements

Machinery (personal property) appraisals often include a condition statement assigned to many items being appraised. The statement of condition is based on a visual inspection only. It is impossible to judge the true condition of an asset without relying on the people most familiar with the asset and its maintenance history. Conditions statements consider the following criteria:

CONDITION STATEMENT	DESCRIPTION
New	New, unused, installed or uninstalled property in excellent condition

Very Good	Like new condition, only slightly used, capable of full capacity per design specifications without modifications or requiring repairs or abnormal maintenance

Good	Used property, capable of operating at or near full specified capacity, that has undergone repairs as part of regular maintenance

Average	Used property, requiring some repairs or ordinary replacement of wear parts, with the condition of the item being consistent with its actual age, assuming normal usage

Fair	Used property, operating below fully specified capacity due to age and/or application, requiring general maintenance and/or replacement of components and/or wear parts in the foreseeable future

Poor	Used property, operating below fully specified capacity due to age and/or application, requiring major rebuild and/or maintenance in the near future of its major components and/or wear parts

Scrap	Used property, salvage value only, no longer serviceable, not economically feasible to repair and/or modify, salable only for the recovery of the property's basic material content or reusable component parts