How does an Appraisal Work? In the "good old days" an insurance company or attorney would contact a horse trainer to get an appraisal or solicit expert testimony. Trainers were generally pretty accurate in evaluating current market value, as they kept abreast of the marketplace. However, a good adversarial attorney inevitably exposed their evaluation for what it really was…. a "guesstimate". A good guess and estimate of the horse's value that was full of personal bias and very insupportable from a scientific standpoint. Courts rely on unbiased expert witness testimony. After the crash of the S&L's in the late '80's which was caused, in part, by the over inflated land appraisals, Congress mandated that the industry clean up it's act and in the aftermath, a new system of appraisal was developed. This system used mathematical formulas instead of guesses and is the standard for any type of personal property appraisal today. Our appraisals use these standards. In making an appraisal, a comparable market analysis is used. The market data approach has as its premise, the comparison of the subject horse with other horses that have sold in the recent past. From these recent sales figures, a composite figure is calculated which represents the fair market value of the subject horse. The appraisal should clearly state the kind of value being determined whether that value is the (1) fair market value; (2) liquidation value or (3) replacement or reproduction value. Appraisals should detail all of the procedures used to estimate the value, such as (1) analysis of comparable sales; (2) estimation and analysis of income, if applicable and; (3) relation of the appraisal value to a specific point in time. Horses are mathematically scored based on their most important characteristics which generally affect their value, such as level of training, conformation, marketability, temperament, pedigree, show records and physical appearance. The horse's score is converted into a points system and a dollar value per point is calculated. The subject horse is compared with several other horses who exhibit similar characteristics and the appraiser inevitably arrives at a qualitative and quantitative score. Our Reports Include: A description of the Appraisal Process and a Summary. The Quantitative Scoring System and analysis, if applicable. The Appraiser's Qualifications & Education. A Comparison Appraisal Summary & Worksheets* (for litigation) All Assumptions & Limiting Conditions of the Appraisal Pertinent Genealogy and Achievement Records* IRS Form 8283 for Charitable Contributions* The Intended Use and Purpose of Appraisal Professional Photographs and Video* A Copy of the Subject's Certificate(s) of Ownership* The Intended Use of Appraisal The Intended & Authorized Users of the Appraisal. Substantiation of Private Treaty Sales Substantiation of Show or Race Records. (*If Applicable or Necessary) Documentation of valuation formulas are available for litigation purposes and understandable. The finished product is professionally prepared and bound. The appraisal is meticulously developed in accordance with the USPAP (Uniform Standards of Professional Appraisal Practice) guidelines and IRS Regulations. The goal of a monetary appraisal is the determination of a legally supportable numerical result that is objective and unrelated to the desires, wishes or needs of the client who engages the appraiser to perform the work. The finished appraisal should be accurate, informative and supportable in a court of law.