Blockage - What Is It and How Does It Affect the Appraisal Industry
-
Register
- Non-member - Free!
- Member - Free!
- Trial - Free!
July 9, 2024 at 1:00 PM ET
A blockage discount adjusts the Fair Market Value of an item downward because of the risks of discounting when a large volume of one thing is released into the relevant market all at once. This is very familiar to appraisers of art and memorabilia. For example, if suddenly a large number of what was thought to be a limited edition of artwork, rare books artifacts, etc. were suddenly to be put up for sale the value based on the rarity of owning such collectibles almost definitely decline, in some cases substantially.
Whether familiar with the term or not, equipment auctioneers certainly see the same effect when selling a high volume of similar equipment at a single action, such as a fleet of a particular make and model of bulldozers or a factory full of the same CNC machines. In the equipment appraisal profession, though, Blockage is often underused or not used as it is generally not a familiar concept. Similar principles can apply when selling a large volume of publicly held stock, for example, or in a business or estate valuation when there is a large amount of the same equipment, inventory, etc. This webinar will explain the basic principles of blockage and illustrate applications for equipment appraisers.
Lawrie Hollingsworth
E.E., MCMEA, Certified Disaster Recovery Planner
Asset Technologies, Inc.
Lawrie Hollingsworth is president of two national firms specializing in services to in disaster recovery service and insurance property claims investigation, and forensic analysis and engineering. Ms. Hollingsworth holds a Bachelor of Science in Electrical Engineering (B.S.E.E.) from the University of Florida (1976) and is a Master Certified Machinery and Equipment Appraiser (MCMEA). Her graduate and undergraduate areas of specialization were in electronics and integrated circuit design with chemistry and materials sciences concentration.
She is the author of several articles on disaster recovery planning and management. In addition to her technical activities and business entrepreneurship, Ms. Hollingsworth has held positions of responsibility in financial management and Mergers & Acquisitions. As a 9/11 responder, Ms. Hollingsworth and her firms were mobilized to the Gulf Coast area for Hurricane Katrina recovery assignments. Additionally, she has over thirty years of experience in the electronics industry.
Key:
Complete
Next
Failed
Available
Locked