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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
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A description of the Appraisal Process and a Summary.
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The Quantitative Scoring
System and analysis, if applicable.
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The Appraiser's Qualifications & Education.
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A Comparison Appraisal Summary & Worksheets* (for litigation)
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All Assumptions & Limiting Conditions of the Appraisal
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Pertinent Genealogy and Achievement Records*
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IRS Form 8283 for Charitable Contributions*
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The Intended Use and Purpose of Appraisal
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Professional Photographs and Video*
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A Copy of the Subject's Certificate(s) of Ownership*
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The Intended Use of Appraisal
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The Intended & Authorized Users of the Appraisal.
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Substantiation of Private Treaty Sales
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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 Stallings use a definitive set of qualitative and qualitative valuation formulas and copyrighted worksheets to
develop the appraisals.
USPAP
The USPAP or Uniform Standards of Professional Appraisal Practice were developed by a division of The Appraisal Foundation called the Appraisal Standards Board that was authorized by Congress as the Source of both Appraisal Standards and Appraiser Qualifications. Real estate appraisers, by law, must comply with USPAP regulations in accordance with the Financial Institutions Reform, Recovery and Enforcement Act of 1989. Personal
property appraisers are, however, not compelled to comply with USPAP standards. It is important therefore, for the general public to protect themselves by dealing solely with appraisers who voluntarily comply with USPAP standards and guidelines. Appraisers who have taken and passed the intensive courses necessary to develop a very comprehensive and defensible appraisal are taking care of their clients, professionally.
Summary
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.
The Stallings accreditation is predicated on experience, technical appraisal proficiency, intensive written examinations
and by understanding fundamental appraisal ethics, principles and concepts. The appraiser you select should possess relevant experience, education, skill and integrity. Certification in appraising, issued by an accredited appraisal society is a very strong indicator of ability.
When you hire an accredited personal property appraiser who complies with *USPAP standards, you are assured of the best valuation experience on the market because certified appraisers bring knowledge of the market
and professional expertise to the job. Certified appraisers are accurate, impartial and credible. They are educated and experienced in their fields and can deliver independent valuations that ensure your property is appraised at its actual value.
Ronny and Michelle Stallings work with horses every day, in some form or fashion. The Stallings are either training, showing, breeding, appraising or selling horses because they make their living with horses. The horse business is
not a sideline or a source of extra income, so they take it very seriously. While both are experienced with the light horse breeds, their valuation system makes it possible to appraise any type of horse.
There are lots of appraisers out there who have taken similar courses and have learned the basic mechanics of appraisal, but very few appraisers make a successful living in the industry and have the experience and skills to not only appraise a horse proficiently, but support their work effectively
in a court of law. We appreciate your interest and invite you to contact us with any questions if we can be of service.
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American Equine Appraisers
Ronny & Michelle Stallings
2422 Dr. Sanders Road,
Aubrey, Texas 76227
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Appraisal Contact Information
info@americanequineappraisers
Telephone: (940) 365-2860 |
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