Advantage Equine Appraisals
P.O. Box 6124
Norco, CA 92860
951-371-3733

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

DO YOU NEED AN EQUINE APPRAISAL?

 At some point in a horse owners life, situations may occur that are unfortunate and unforeseen that may require you to provide and/or prove the value of your horse. This is when you need a professional horse appraiser who is knowledgeable and is capable of advising 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 the courts can order a certified appraisal in many types of legal proceedings including bankruptcies and divorce?

An Equine Appraisal…is a unique service that is created to establish the current market value of horses for purposes such as:

• Sales
  • Purchases
  • Insurance Claims and Policies
  • 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.
  
  We can assist with providing fair and impartial values for almost all horse related matters:
  • Insurance Policies and Claims
  • Expert Witness Testimony
  • Divorce & Estate Settlements
  • IRS Inquiries and Audits
  • Donations
  • Equine Injuries and Deaths
  • Fraudulent Matters
  • Contract Disputes
  • Many types of Litigation
  • Undisclosed Health & Soundness Issues
  • Purchases, Sales and Syndications

WHAT TYPE OF HORSES DOES ADVANTAGE USUALLY APPRAISE?

We are experienced in various breeds and disciplines. We are an all-breed appraisal business and we typically value the following horses:

•  Performance
  • Barrel Racing
  • Team Penning
  • Roping and Ranch Horses
  • Cutting and Reining Horses
  • Trail
  • Halter
  • Western Pleasure
  • English
  • Breed Stock
  • Race Horses
  • Personal Companion/Trail Horses and Ponies
  • Miniature
  If we don’t specialize in your breed or discipline, we are happy to direct you to another Certified Equine Appraiser that does, just contact us for a free referral.
  
  
  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 records, prizes and earnings
  
  Factors NOT Affecting Value:
  
  • Emotional attachment
  • Perceived Value
  • Direct or indirect cost of ownership (maintenance, veterinarian cost and financial needs)

Note: 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 appraisals 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 appropriate corresponding methodologies. Only a written report prepared by a qualified professional appraiser may serve as a legal document.

TYPES OF EQUINE APPAISALS:

Summary Appraisal:

Summary appraisals are most common and are considered the most acceptable for general valuation of horses. Frequently used in buying, selling or court a summary appraisal is prepared for and restricted to a specific user and purpose. It cannot be used for another client or to value the horse under different circumstances or at a different time.

Most commonly done on a Sales Comparison Basis, similar to real estate, it requires analyizing data in various formats for determination of Fair market value (FMV).

In the case of a deceased or lost horse, this appraisal assumes facts that would ordinarily be obtained through the physical inspection of the equine. These assumptions are documented as hypothetical conditions. Usually for federal agencies, police reports, or insurance claims.

Preliminary Appraisal:

Usually for insurance purposes. Often includes current and prospective value of the subject.
Retrospective Appraisal:
Involves researching past markets to determine the value of a horse at some specific time in the past. Usually for the IRS or to justify other previously reported values.

Self-Contained Appraisal:

Includes all relevant data plus a study of the general economic conditions and the horse world as a whole. This report type is very extensive but infrequently required.

THE APPRAISAL PROCESS:

Advantage 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 and 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 RESULTS:

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 conclusion 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.

FREQUENTLY ASKED QUESTIONS:

Why would someone need a horse appraised?

At some point in a horse owners’ life, situations may occur that 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. ADVANTAGE examines horse values for sales, donations, litigation, partnerships, collateral and more!

What types of horses does ADVANTAGE usually appraise?

Performance, Barrel Racing, Team Penning, Roping and Ranch Horses, as well as Cutting and Reining Horses. We also have vast experience with Trail, Halter, Western Pleasure, English, Breed Stock and Your Personal Companion/Trail Horses. If Advantage does not specialize in your breed or discipline, we will be happy to direct you to another Certified Equine Appraiser that does.

Do you provide services to Attorneys, Accountants or Insurance Agents

Yes, in fact, our valuations are used in court, tax purposes and with insurance companies. You can be confident that your appraisal will hold up to the highest standards including litigation and the IRS.

How does ADVANTAGE determine the value of your horse?

There are many ways to assess the value of your equine. ADVANTAGE evaluates the unique circumstances of each equine and then applies the most appropriate method, as defined by the American Society of Equine Appraisers. Most often we use the Sales Comparison method to determine the “fair market value” of the equine being appraised. Much like real estate we can review other equines that have sold recently with similar characteristics to your equine then add or subtract based on an unbiased evaluation of how your equine compares.

Can ADVANTAGE determine the value of a horse you don’t physically see?

Yes. Because there are horses that are no longer available for inspection, much of our work is done by conducting appraisals under hypothetical conditions, i.e. if the equine is deceased or stolen. This type of appraisal requires that we “assume” some facts by using information obtained through documentation and validation by other sources including but not limited to Veterinarians, trainers, registry officials, local sales, and/or prior owners.

I am considering the donation of my horse. Advice?

Yes. The donation of your equine to a school or non-profit organization is a good charitable contribution you can make. First, make sure that the school or organization does qualify as a charity under the IRS guidelines. Then consult with an accountant to determine if you may be eligible to receive a tax deduction. Other things to consider….the IRS will allow you to deduct the “fair market value” the price your equine would bring on the day you make the donation. Example; if you donate an aged equine that has severe hoof issues, you will not be able to claim the same price you paid for him as a young, sound futurity horse.