Construction and Material-Handling Equipment

Used-equipment demand remains uneven. Lower inventory has not eliminated depreciation, particularly for aerial lifts, telehandlers, and common-capacity forklifts. Longer marketing periods and differences between asking prices and completed auction results continue to affect liquidation conclusions.

Appraisal impact: Use completed auction evidence whenever possible for Forced Liquidation Value. Carefully adjust for age, condition, hours, configuration, location, removal costs, buyer’s premiums, and expected exposure time.

Heavy Trucks and Trailers

Reduced availability continues to support selected highway tractors and trailers, although results vary significantly by mileage, maintenance history, emissions generation, body configuration, and sales channel. Medium-duty trucks remain more mixed.

Appraisal impact: Do not apply a blanket trucking adjustment. Highway tractors, refrigerated trailers, vocational trucks, and medium-duty units should be analyzed separately.

Agricultural Equipment

Agricultural-equipment values remain selective. Higher-horsepower tractors and certain planters show better market support, while sprayers and older combines require closer scrutiny. Commodity prices, farm income, financing costs, seasonality, and dealer inventories continue to influence demand.

Appraisal impact: Apply asset-specific adjustments and corroborate advertised prices with completed sales whenever reliable transaction evidence is available.

Manufacturing and Industrial Equipment

Manufacturing demand remains mixed. Continued-use value may remain supported when machinery is productive, properly maintained, and integrated into an operating facility. That support does not automatically transfer to removed Fair Market Value or liquidation value.

Appraisal impact: Separate installed utility from removed value. Consider dismantling, rigging, freight, foundations, electrical work, recommissioning, software, tooling, and buyer-installation expenses.

Lending, Special Assets and Liquidation

Higher financing costs and cautious underwriting continue to affect equipment transactions, particularly for specialized assets with limited buyer pools. Lenders should distinguish between orderly exposure and a short auction-based liquidation period.

Asking-price data should not be treated as completed-sale evidence without appropriate adjustments. Buyer’s premiums, commissions, transportation, removal expenses, repairs, and deferred maintenance can materially reduce net liquidation proceeds.

Appraisal Methodology Note

Asking-to-auction spreads are market indicators—not automatic Fair Market Value, Orderly Liquidation Value, or Forced Liquidation Value discounts. Each value conclusion should reflect the asset’s condition, utility, marketability, location, anticipated exposure period, removal requirements, and applicable sale expenses.

Tax Appeals and Appraisal Standards

No single national market trend should be used to adjust an entire machinery-and-equipment assessment. Property-tax and financing assignments should be supported by the specific equipment class, age, condition, functional utility, location, and relevant market evidence. Appraisals should continue to identify the intended use, intended users, effective date, value definition, assumptions, and scope of work.

What to Watch

• The September 22 EIA diesel-price update and its effect on freight and liquidation expenses.
• The September 24–25 Ritchie Bros. Midwest Regional Auction, currently listing approximately 7,300 items.
• Whether higher financing rates begin affecting equipment approvals and buyer demand.
• The September 25 Baker Hughes rig-count release.
• Whether concentrated construction-equipment auction supply results in wider OLV and FLV discounts.