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.

Register for the webinar here: https://us06web.zoom.us/webinar/register/7817187125817/WN_qeZAATbjQsyNhoBjol3B1A#/registration