Please
be advised: Your own research may not be a substitute for the type of formal
analysis and appraisal that can come from a qualified professional appraisal service. In
addition, you should know that appraisal results will vary according to the intended
purpose of the appraisal. The two most common purposes for appraisal are “Fair Market
Value” (the value typically applied to the donation of a horse to a qualifying
non-profit institution), and “Replacement Value” (which is typically required
for insurance purposes). But there are various other types of appraisal purposes, each
with their own appropriate corresponding methodologies. Only a written report prepared by
a qualified professional appraiser may serve as a legal document.
An Equine Appraisal...
is a unique service created to establish current market values of horses for purposes
such as: sales; purchases; insurance claims and policies; and litigation for both private
owners and insurance companies. Horses are considered personal property and fall under the
same guidelines as stated in the Personal Property Appraisers Guide. A professional report
is created for each appraisal. This service is vital to all horse owners as well as
attorneys and insurance companies that deal with cases involving horses.
What types of horses does Sterling usually appraise?
Our appraisers are experienced in various breeds and disciplines. We are an all-breed
appraisal firm and typically value Hunters, Jumpers, Equitation Horses, Ponies, Miniature
Horses, Western Pleasure & Performance Horses, Trail / Companion Horses, Race Horses,
and breeding stock. Note:
If we don't specialize in your breed or discipline, we are happy to direct you to another
Certified Equine Appraiser that does, such as Gaited or Olympic Caliber horses - just
contact us for a free referral.
Need An Equine Appraiser?
At some point in a horse owners life, situations may occur that are unforeseen and
require you to prove the value of your horse. This is when you need a professional horse
appraiser who is compassionate and can advise you of the proper process and
procedures.
Did you know that the IRS requires a certified appraisal to take a tax
deduction greater than $5,000 on a donated horse? Did you know that an insurance company
may decline to write a policy for the value you feel your horse is worth unless you have a
certified appraisal to substantiate that valuation? Did you know that courts can order a
certified appraisal in many types of legal proceedings including bankruptcies and
divorces?
The Appraisal Process:
Sterling abides by a strict code of
ethics and rules as established by the Appraisal Standards Board and the American
Society of Equine Appraisers, providing a fair and unbiased opinion of most major horse
breeds.
In making an equine appraisal, most often a comparable market
analysis is used. The market data approach has as its premise the comparison of the
subject equine with other equines that have sold in the recent past. From these values of
recent equine sales, a composite figure is calculated representing the current (or fair)
market value of the subject equine. This value is time sensitive due to economics and
trends in the horse industry.
Current Market Value:
This is the highest price, estimated in terms of money, that an informed buyer would pay
for a particular horse on any given day. Please recognize that markets change and an
appraised value may change in months or days.
At the client's option, a veterinary
exam and statement of the horse's physical condition can be factored into the
appraisal. This is especially useful for an older horse or when the value that the client
believes the horse to hold does not bear out in the comparable market analysis. Also at
the client's option, trainer's statements (either an independent, one-time
evaluation or from those trainers that have directly worked with the appraisal
subject) can be factored into the appraisal. This is especially useful for a horse with
extensive training but limited competitive miles or when the value that the client
believes the horse to hold does not bear out in the comparable market analysis.
End Result:
The client is provided with a complete, professional report which contains a full
written description of the equine, including photo(s), conformational / gait analysis and
a copy of the subject's registration papers with any significant notes about lineage plus
show records and other supporting market data to back up the conclusions and
valuation. A veterinary exam or trainer's statement may be critical in accurately
assessing a horse's current value and would also be a part of the finished report, if the
client desires.
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Being educated on the appraisal process will ensure
you receive the appropriate type of appraisal for you and your horse's needs.