Gym Appraisal Top Blog Articles

How to get an accurate “real market value” Health Club appraisal.

http://gymappraiser.blogspot.com/2011/07/how-to-get-accurate-real-market-value.html

How To Sell Your Health Club Business.

http://gymappraiser.blogspot.com/2011/07/how-to-sell-your-health-club-business.html

What Factors Determine A Fitness Center Appraisal?

http://gymappraiser.blogspot.com/2011/07/what-factors-determine-fitness-center.html

Gym Appraisal Pricing.

http://gymappraiser.blogspot.com/2011/07/gym-appraisal-pricing.html

Gym Owners Lose Money Without A Professional Gym Appraisal.

http://gymappraiser.blogspot.com/2011/07/gym-owners-lose-money-without.html

What Is A Gym Appraisal High Blue Book Value?

http://gymappraiser.blogspot.com/2011/08/what-is-gym-appraisal-high-blue-book.html

 

What Is Needed To Get Your Appraisal Started?

http://gymappraiser.blogspot.com/2011/07/what-is-needed-to-get-your-appraisal.html

Need Form 8283 IRS Donations For Gym Fitness Equipment.

http://gymappraiser.blogspot.com/2011/08/i-need-form-8283-irs-donations-for-gym.html

What Is A Low Blue Book Gym Equipment Value?

http://gymappraiser.blogspot.com/2011/08/what-is-low-blue-book-gym-equipment.html

I Need Form 8283 IRS Donations For Gym Fitness Equipment

Gym Appraiser / Steve Paterson, is a qualified appraiser to satisfy the IRS 8283 Form in America for Gym / Fitness equipment donations.

Get IRS Form 8283 Noncash Charitable Contributions. 

Gym appraiser completes IRS Form 8283 for your gym equipment donation to charity.

If you donate fitness equipment to a Charity with a value over $500 then the IRS requires a completed 8283 form attached to your tax return to make it a legitimate tax deduction.

Read the instructions below that come directly from the IRS website as to who is qualified and why.  Get your 8283 IRS Form completed by a professional so the deduction is legitimate. 

 Instructions for Form 8283 by Department of the Treasury IRS. Page #6, Part III, Declaration of Appraiser. 

A qualified appraiser is an individual who meets all the following requirements.

1. b. The individual has met certain minimum education and

        experience requirements.

2.     The individual regularly prepares appraisals for which  

        he is paid.

3.     The individual demonstrates verifiable education and

    experience in valuing the type of property being appraised.  To do this the appraiser can make a declaration that, because of his background, experience, education, and membership in professional associations, he is qualified to make appraisals of the type of property being valued.  The declaration must be part of the appraisal.

In addition the appraiser must complete Part III of Form 8283. See section 170(f)(11)(E), Notice 2006-96, and regulations section 1.170A-13(c)(5) for details.
Get pricing / cost  to get your 8283 appraisal and documentation completed to meet IRS requirements.

Gym fitness equipment appraisal

What Is A Low Blue Book Gym Equipment Value

When the gym appraiser puts a low blue book value on a gym business it is based on real current values that have sold.  It has nothing to do with a percentage of the new selling price.

The low blue book value is what a used fitness equipment broker will pay for it.  Haul it back to his business facility to be refurbished and resold to the next user.

This is about the same as a trade-in at the car dealership.  The real value is added after the fitness equipment is moved,  inventoried, refurbished and repaired like new.  And then marketed and advertised to find the next retail buyer.

This is the value a bank wants to see when a Gym owner is not making payments and will get shut down.  This is also the value a gym operator wants to see when he is buying brand new gym equipment and wants a trade-in value.

Gym equipment appraisal  

What Is A Gym Appraisal High Blue Book Value

The high blue book value is what the current fitness equipment is worth to the next business owner in the current location it is in today.

This is the fair market value to the next user / owner in the present condition it is in today.  Before any maintenance or refurbishing is implemented.  When the gym business owner is selling to the new gym business buyer this is the value that needs to be negotiated.

get a gym equipment asset appraisal

Fitness equipment appraisal

How To Sell Your Health Club Business.

As a professional Gym equipment appraiser for 11 years I also have experience with brokers who value and sell the complete fitness business. 

The 3 parts of a Health Club business that buyers review closely are.

1) Monthly EFT. 

The amount of automatic ‘bank account transfer’ revenue that is generated monthly and over the last 24 months.

      
   2) The fitness equipment asset appraisal. 

   The professional gym appraisal plays an important factor in the value of the Gym business.  The current market value is added right on to the price of the business sale.

    3) The terms of the building (facility) lease.

  

    When the buyer is comfortable with the accuracy of the Gym equipment appraisal then the negotiating factors are the MULTIPLE of the ETF and other revenues.  I have heard of 10 times multiple earnings and I have heard of 1 times the yearly revenue multiple plus the fitness equipment current market value.   Depending on how bad the seller wants to sell or the buyer wants to buy, the selling price can fall in between these 2 values. This is my opinion only and is freely given to you as a gift of knowledge.  I do not broker or value the complete Gym business.  I only charge a fee for completion of a professional fitness equipment appraisal that can be trusted.

                           Get Gym Appraisal Pricing click here

gget a gym fitness equipment appraisal click here

What Factors Determine A Fitness Center Appraisal?

I am often asked what percentage of the new equipment purchase price is used gym equipment worth?  And my reply is that many factors determine the current market value of professional fitness equipment inside a Health Club.  But percentage of new price is not one of them.

The most important value factor is the Manufacture’s brand and the model.  If you purchased the Cybex cordless total Body ARC trainers three years ago you retain much of the value because of popularity and demand.  This machine has proven itself to hold up well under heavy use and maintenance and repairs are minimal.  And it is very popular among gym members.   But if you purchased the Star Trac elliptical crosstrainer ELITE model 6230 then you have lost 95% of its value.  Because it is a maintenance nightmare and does not have very high member demand.   So the first thing an appraisal establishes is brand and model.  Does the Fitness center have TRUE brand treadmills or Life Fitness brand treadmills?  This makes a big difference.

Current physical condition is also an important factor.  If the fitness equipment has been beat up by members, rusty from sweat and in need of repairs then it has lost a good portion of its value.  The cosmetic condition is determined by the video and photos provided.

How well the manufacture supports repair parts of the equipment being appraised is important.  Years ago Cybex was the worst at this.  They would make it so difficult and expensive to get replacement parts to keep their gym machines in good condition that it made their brand a bad buy.   Today Cybex has figured it out and does a better job of supporting their used machines out in the field.   Now today, 2011, MATRIX brand cardio is a bad buy for this reason.   If you have MATRIX cardio machines you have lost a big portion of the value.   Now if you own Life Fitness cardio then you retain a big part of the value because getting repair parts is the cheapest and easiest of any professional gym brand today.

Color can be a neutral factor or really make it worthless.   So before you buy purple frame machines with yellow arm movements consider the re-sell value.   White and platinum metal are the 2 colors that hold the most value.

Age matters, but only because older machines have an outdated look and function.   And it’s too hard to get parts to do repairs.  The difference between 3 year old equipment and 5 years old only matters based on brand, model and cosmetic condition.  I have given more value to 5 year old machines than 3 years old.

Present market conditions can make a difference on value.  From 2008 to 2010 I noticed many gyms had gone out of business.   This dumped a lot of good condition, newer model gym equipment on the market.  So this depressed values for used fitness equipment.  This in turn lowered the value of the used equipment inside a fitness center that was up for sale to a new owner.

fitness center equipment appraisal

What Is Needed To Get Your Appraisal Started

As a professional Gym equipment appraiser I do not need to physically enter a Fitness Center to get the information I need.  Flying into your town and spending the day in your Gym doing an appraisal would make the appraisal very expensive.

I do need to see all the fitness equipment, lockers, and sports flooring in a video or photos. (I do not give values for Stereo equipment, Computers and software, alarm systems or office equipment.)

My favorite way is for the Gym owner to do a simple walk through video and post it to YOUTUBE.   Then send me the link to the video.   I can also get the appraisal completed with photographs.

The important information I need to view is color, vintage, brand and model, and cosmetic condition.  When taking a video just go through the Gym like you are giving a tour to a member.   The photos can be group photos as I do not need a picture for every machine.   I just need to see every machine in full that is part of the appraisal.

Then I need a complete inventory list with quantity in an excel spreadsheet format, or a Word document.   This inventory list must be in digital format and not a Scan or PDF.   The reason for this is I use your list to create my appraisal documentation and I don’t type very fast.   If you send me a copy of your original sales invoice then I will refer to it as *See List Attached, and I will not have each item priced.  It will just be the total value.

Payment needs to be sent along with this information.   

*See Gym Appraisal pricing click here

Payment by check payable to Steve Paterson  and mail to my appraisal office

Steve Paterson

206 East Indiana ave. suite 204

Coeur D’alene Idaho 83814.  

Email the inventory document, photos or video link to me at  gymappraiser@gmail.com and be sure to include your cell phone so I can call you directly with any questions.

I will start the appraisal after the check has been received.  I request at least 7 business days to complete an appraisal.  A rush request can be added in some cases.

health club appraisal