Anyone who needs to find out the value of a horse for the purpose of donation, divorce, insurance, or other matters, should hire an appraiser certified by the American Society of Equine Appraisers (ASEA). An ASEA certified appraiser will have a minimum of 5 years experience with horses and know the "Principles of Valuation". All ASEA appraisers follow the same standard Code of Ethics and use the same Uniform Standards of Professional Appraisal Practice (USPAP) that other professional personal property appraisers and real estate appraisers use. Unlike real estate appraisers, equine appraisers don't need to serve an apprenticeship, need no state license, and can work in any state and across international lines.

A good appraiser continues to keep up with the changing market, attends shows and sales, and attends seminars and classes on the types of horses that they appraise in order to stay current.  

The Appraisal Process

When I'm hired to perform an appraisal, I first need to get some basic information from the client:

 

• I need to know what is to be appraised (type of horse, piece of equipment, carriage, etc.), who the owner is, and the address the subject property is located at.
• What is the intended use of the appraisal (charitable donation, insurance, collateral, etc.)? This helps me determine the correct type of value that I'm going to use for the appraisal. For example, if a client intends to donate his horse to a charitable organization, I would appraise the horse at the fair market value (retail). If a client were in a Chapter 7 bankruptcy and had to sell the horse, I would appraise the horse at a forced liquidation value, which is much less than the fair market value (retail).
• Who is the intended user (or users) of the appraisal? Is an attorney and their client? The client, her accountant, and the IRS? An insurance company and their client?
• When do they need the appraisal? (If the appraisal is a rush job, many appraisers include a rush fee.)
• When can we set up a time for an inspection? I generally like to visually inspect the horse, but in cases where the horse is stolen, deceased, or no longer in the client's possession, the horse can still be appraised using pictures and/or video.

I also will email the client a list of items that I require (if they have them available), such as a photocopy of the registration certificate, a copy of the pedigree, show record, veterinarian certificate of health, and other data relevant to helping me determine the market value. On the day of the inspection, I arrive with my measuring stick, 35mm camera, a folder for the horse, and a pad of paper for notes. I use a camera with 35mm film because it can't be digitally altered.

First I will take notes about the location of the horse. Then I will measure the horse and record the height. I will inspect the teeth, go over the body and legs to see if there are any bumps or identifiable scars, write down any markings, and ask about the horse's health. I will ask to have the horse walk and trot, so that I can see how it moves. Then I will take 4 pictures: front, left side, rear, and right side. I will also take pictures of any scars and identifiable markings of the horse.

Golden Coyote Scar