How is used commercial kitchen equipment valued?
Primarily through sales comparison and cost analysis: recent comparable sales drawn from dealer price sheets, manufacturer catalogs, and auction results for the same models, alongside replacement cost new less depreciation. The income approach is reserved for leased equipment or lines tied to a specific income stream.
Can an older refrigerator in good condition still lose appraised value?
Yes. Units that miss current energy codes or refrigerant regulations face replacement sooner than their physical condition suggests, which shortens remaining useful life and cuts market value. Functional obsolescence like this is analyzed separately from ordinary wear in the depreciation work.
What should I document before a kitchen equipment appraisal?
A comprehensive inventory: appliance type, make, model, serial number, manufacturing year, current condition, and significant modifications or upgrades, plus purchase dates and prices where available. These details drive obsolescence conclusions, remaining-life estimates, and the selection of comparables.
Is the depreciated value on my books what the equipment would sell for?
Usually not. Accounting depreciation follows statutory recovery periods, while market value tracks age, condition, remaining life, and demand. Well-maintained commercial appliances can be worth more than book value and technologically obsolete or non-compliant units far less; a credible appraisal addresses the gap explicitly.