Writing a clear brief for an asset valuation
- Topic
- Equipment valuations
- Reading time
- 3 minutes
- Last reviewed
On this page
A clear valuation brief says what decision the opinion must support, which assets it covers and who will use it. Agree those points before commissioning the work. Otherwise you may receive a plausible figure that is unsuitable for its intended use.
The valuer should help settle the scope. You do not need to choose technical valuation terminology without advice. Explain the commercial situation in ordinary language and ask which basis and deliverable fit it.
An adaptable valuation instruction
Business and authorised contact: legal entity, named contact and the scope of their authority.
Purpose: the decision the valuation will support, such as considering a defined equipment disposal. Include any requirements supplied by a lender, accountant or other intended recipient.
Intended users: who may receive and rely on the work, subject to the agreed terms.
Assets: current asset-list version, locations, included accessories and proposed exclusions.
Ownership questions: finance, leases, customer property, disputed items and the advisers addressing them.
Required date: the date the opinion should concern and the date you need the report. Keep these separate.
Proposed sale circumstances: whether equipment remains in place or must be removed, available marketing time and fixed access limits.
Evidence available: records, photographs, maintenance information and known gaps.
Inspection arrangements: site contact, access restrictions and any request or limitation to discuss with the valuer.
Deliverable: format, level of detail and any recipient requirements to confirm.
Confidentiality and sharing: sensitive material, permitted recipients and the process for further requests.
Open questions: matters requiring agreement before the instruction is final.
This is an enquiry and scoping template, not a substitute for the valuer's terms of engagement.
Keep dates and purposes distinct
A report delivered next month may concern a different agreed valuation date. The valuation-date guide explains why that distinction matters. Do not use today's date automatically because it is the day you filled in the form.
Similarly, a disposal discussion and a financial reporting requirement may call for different work. Use the valuation overview to identify the question, then obtain advice on the correct instruction. An existing report should not be repurposed merely because it covers the same machines.
State the awkward assumptions early
If the machine cannot be inspected, the owner is unsure about software transfer or the site must be vacated quickly, put that in the brief. The assumptions guide helps you recognise the points that can change how the final figure is used.
Do not quietly ask for an optimistic premise while intending to sell under a more constrained one. If two scenarios would be useful, discuss whether the valuer can report them separately and what each would mean.
When comparing proposals or completed reports, keep the agreed brief beside them. The report comparison worksheet can then identify differences in scope before you compare the totals.
Send UK Auction Group the brief with the asset list. Ask it to confirm the proposed work, limitations and deliverable in writing. The objective is a shared understanding of the question before anyone relies on the answer.
Explore the valuations guides.
Professional reference: RICS.
Sources
This guide gives general information. Equipment-specific, legal, tax and safety decisions may need a qualified adviser or competent specialist. The guides do not promise sale prices, fees or results.