Sterling Equine Appraisals - About fair market value and horse prices


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The Appraisal Process

Factors Affecting Your Horse's Value:
- Disposition
- Value of sire/dam and offspring
- Physical traits such as age, health and conformation
- Breed and type characteristics, pedigree and background
- Accomplishments including training, show or race records, prizes and earnings

Factors NOT Affecting Value:
- Emotional Attachment
- Perceived Value
- Direct or indirect costs of ownership (maintenance, veterinary bills and financial needs)

the finer points of Horsemanship 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.

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, 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.

Being educated on the appraisal process will ensure you receive the appropriate type of appraisal for you and your horse's needs.

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.

We can assist with providing fair and impartial values for almost all horse related matters:
	Expert Witness Testimony
	Divorce & Estate Settlements
	IRS Inquiries and Audits
	Donations
	Equine injuries and deaths
	Fraud
	Insurance policies and claims
	Contract disputes
	Many types of litigation
	Undisclosed health or unsoundness
	Purchases, sales, syndications

Client Comments

Skare Training Center, Texas We wanted to use our senior stallion as collateral for a bank loan and the bank required the appraisal. Based on the stallion's pedigree, conformation, the success of his get and also on the current industry values for his type of horse, we feel his appraisal was quite fair.

Julene Augusta, New Hampshire Thank you again for all of your advice and suggestions. Speaking with Leah was the best thing that could have happened. She is so experienced and was able to help me make a decision I now feel comfortable with.

Sterling Equine Appraisals | 24 Hour Phone 559.217.8533 | info@equineappraisals.com
Serving Horsemen from coast-to-coast with locations in California and New York.