Horse Appraisal Benefits

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The Benefits of an Equine Appraisal Horse Appraisal
by Victor Yosco TJS Equine Appraisers

   Whether you are an experienced all around horse owner or a first time buyer, there are many things to consider to prevent you from making costly mistakes in purchasing or selling your
horses. The good news is there are ways you can reduce your chances of making them. While common sense tells us to get a pre-purchase veterinary examination, this is an important factor; this speaks primarily to the current health of the animal. It does not speak to the many other factors that determine a horse’s market value. By obtaining a professional Equine Appraisal, you are assured of less likelihood of wasting your valuable time and potentially a great deal of money down the road.

There are three questions that are asked about an appraisal:
                    Why do I need an appraisal?
                    What is an appraisal?
                    What are the factors in an appraisal?

Why do I need an appraisal?
You ask yourself the question, what is my horse worth? Am I paying market value for my horse? A certified appraiser will provide the expertise and knowledge to assess the correct market value of your horse.
There are many reasons why certified appraisals are needed. It may be legal or judiciary in nature; it may be insurability or asset protection, or simply the true market value of your horse. Due to trends in the horse industry and the economy, the value in an appraisal is time sensitive.

What is an appraisal?
  In order to determine the correct market value of a horse, an appraiser collects information regarding the pedigree, training, show results and confirmation. With the research attained, the information is correlated and measured against comparable horses. The market value is determined using unbiased, mathematical procedures very similar to that of a home appraisal.    An appraisal is sometimes mandatory in situations of buying and selling a horse, for insurance purpose, taxes, estate planning, and litigation. There is an unknown IRS fact, that when donating or gifting a horse in excess of $5000, a certified appraisal is needed.

What are factors in Appraisals?
Determining Factors:                  Factors not considered in value of the horse:
(1)Age                            (1) Assumption
(2)Health History                     (2) Emotional Value
(3)Conformation                     (3) Direct or indirect cost
(4)Disposition
(5)Pedigree
(6)Training
(7)Show Records
(8)Progeny
(9)Offsprings

I also use a 100 pt. system which is based on 6 point Categories.

Category                    Points
(1) General appearance         15
(2) Head neck                10
(3) Forequarters              22
(4) Body                    13
(5) Rear quater               33
(6) Way of going               7
                           100 pts

Determine the horses true value. Professional appraisals often make the difference between insuring horses for what they are really worth, and settling for an insurance company valuation, which is generally lower than the horse’s real market value. Remember, horse owners are not necessarily protected by an “agreed value” rider on their insurance policy.
Value is a tricky issue. If the horse died and is insured, the policy may well provide for “market value” or replacement value. The insurance company has taken premiums based on some asserted value of the horse by the owner. It is rare that an insurance company conducts an independent appraisal prior to the issuance of a policy. However, it is not unusual for the company to question value at the time a loss occurs, which may require the owner to cover the claimed valued in order to collect the face value.

Example. Owner purchases a horse for $45,000.00. The horse is insured for the value of the sale. The horse is a 2 year old stallion. A year later the horse is entered in several shows, it does very good and is entered in the breed’s National show. The owner sells a couple of breedings for the following year at $3,000.00 per breeding. The owner asks the insurance company to increase the policy to $200,000. The insurance company issues a new policy for mortality coverage with the face value of $200,000. The horse dies. The policy has language providing that it will pay replacement value not to exceed the amount of $200,000. Insurance company contests the value at the time of death. (Ref: State of Texas University of Law).     This is just one example where an appraisal will become an important factor in deciding the outcome.

About Victor Yosco
   For the past 15 years Victor has been involved in horses from starting as a hobby to progressing to shows, consulting, and buying and selling of quality horses. I continue to expand my knowledge of horses by taking classes in the anatomy of horses, in Marketing Conformation and Gait Analysis, and Breed Standards and Law. I am constantly attending breed sales and auctions to keep up with the ever changing market. I successfully completed a 35 hour course on principles of Valuation and am a Certified Member of the American Society of Equine Appraisers Lic. Nb. —#04358.
   I am a lifetime member of the American Quarter Horse, American Paint Horse, Morgan Horse Society, Working Ranch Association and the American Ranch Horse Association.
My personal commitment is to provide to you the most in depth appraisal, so you have the right information to make the right decision.

Contact: Victor Yosco
16 Sherry Lanes
Saddlebrook, New Jersey
Phone: 201-226-9897 --Cell 201-519-7137
Email: vic@tjsequineappraisers.com
Website: www.tjsequineappraisers.com

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