Factors for pipeline appraisal

‘across-the-fence’(ATF) method maybe a authoritative criteria for many appraisers which is very popular and only accounts for the value of the land itself. While this method does not take the value of the entity into account especially when it comes to right way segments that contain black steel pipe. Typically, an easement is not a large factor in the value for the cost of a building pipeline.

Market analysis

Comparable sales histories are utilized by market analysis which is not so useful because of the different pipeline and the land and houses are plentiful. While in varying circumstances and locates , this method is still useful to get an overview. This factor which is called comparable analysis is also the primary tool for determining pipeline right of way values compared with the ATF method that used by real estate appraisers.

Highest and best use

The best pipeline evaluation is not this factor while on some occasions this method can be useful in establishing the value of the existing pipeline. For the most part, cold rolled steel pipe is best for the construction industry and valuing that product should combine with other factors such as size, corrosion resistance ability or right of way values.

Customer value

This factor maybe vital for steel pipe supplier and it can help to establish value system in the area of local distribution. However, the assessment maybe different which is based on individual and also vary depending on whether the system is in rural area or not. Besides demographic factors, high or static growth can also affect the valuation.

Income base or construction cost new

This method is a very popular method for setting up value of pipelines. We should take into account predicted income which is based on throughout volumes when using this method. The cost of rebuilding the same pipeline with the similar size is replacement cost or construction cost which is an vital factor in placing value. Steel pipe prices fluctuate because of the volatile market and we can find that value occurs with the interaction of request for the property and its utility as well.

In addition to these methods, some factors may not be neglected when assigning appraisal to a steel pipe such as social factors, diversity of suppliers, market diversity and so on. Social factors can relate to demographic features of regional pipelines such as population, attitudes. Transporters should pay more attention to the market diversity to see if they have opportunity to sell more products to designated buyer.