Not Just Simple Math

There are appraisers who will tell you they can appraise any kind of horse. Really? It's not just simple math. Appraising is more than just mathematical formulas, where an appraiser "pluses" or "minuses" to arrive at a reliable valuation. In my opinion, appraisers who say they can appraise any horse, even ones they don't have personal experience with, are missing a few key elements.


Ethics

The American Society of Equine Appraisers has a published Code of Ethics. The first principle is straight forward:

The appraiser shall achieve and maintain a high level of competence, shall keep himself or herself informed as to all matters involving or affecting livestock and equine values, and shall accept only those assignments for which he/she has the necessary background and qualifications.

Standards

Without a clear understanding of breed standards, it is impossible to accurately evaluate the subject equine. Conformation, movement, and even manners can be defined in a particular breed's standards. They vary from breed to breed. Some breeds even have multiple registries with differing ideals. And, competitive associations have their own rules, standards, and awards. An acceptable and legal practice in the presentation of one breed of horse may be frowned upon or illegal in another.


Contacts

Unlike real estate and some commodities, there isn't a central market for horse sales. As such, there is no single repository for historical horse prices by breed, sex, and discipline. Each appraisal is researched on its own merits. The starting point is a strong network of contacts throughout various segments of the equestrian community. Sales barns and auctions provide guidance around the whole market, but it is private treaty sales - sales between individual buyers and sellers - that make up the bulk of sales comparisons for most breeds. Appraisers must continuously groom their network of owners, agents, and others to keep an accurate pulse on the rhythms of each breed, discipline, and level within each market.

The attorneys we work with know they can count on us to be experts in certain areas. And, we're quick to refer them to experts in other areas when necessary. For example, I do not have the background or network to appraise a Mule, a Gypsy Vanner, or a working Carriage Horse - though I have recently offered referrals for all of these.

We're lucky to have a well rounded team at Sterling Equine Appraisals. We have team members who focus on specific breeds and specific disciplines. They participate and interact in that segment of the horse industry every day, keeping their eyes well trained and their skills up to date with current market trends. This pool of resources allows us to appraise a wide variety of horses...but I'd never say we "know it all!"

Appraising Requires Photography Skills

As a horse owner for over three decades, I have taken my fair share of odd horse photos. You know the kind, where the head is giant on a tiny pea body, or the rump is enormous and the horse's front end is hidden from view...Often these types of photos are taken by those inexperienced with the horse's body, acceptable proportions, and even how their camera works.

Most of us shoot with digital cameras now. Even our phones act as cameras, though with much fewer options and settings than a traditional SLR camera. I can't even remember the last time I thought about having film developed.

As an appraiser, I have had to develop my photography skills. Appraising requires a minimum of 5 views of the horse: 1 left side, 1 right side, 1 head (close up), 1 full front from ears to hooves, and 1 hind end, from rump to hooves. Of course, we also like to have a few action shots and even show photos for our reports, but those 5 I just mentioned are non-negotiable to document the identity and condition of the horse being appraised. I used to take help with me to handle the horse and also shoot pictures so I was sure that *something* would turn out in an acceptable manner.

I took a photography class and even learned how to develop my own film and prints. I have attended clinics about horse photography and read many articles on the subject (check out back issues of Horse & Rider, Equus, or Cowboys & Indians). And, I am fortunate to have three friends who are professional equestrian photographers.

I thought it was time to share the few tips and tricks I have learned. These are very basic, but will really help improve your photos.

Scope out the location before hand. Find a flat, level area to pose the horse, with as few background distractions as possible. Grass, fence lines, sky and clean barns are good; tractors, cars, and other animals are distracting. Don’t be embarrassed to ask the handler to walk a distance with the horse to photograph in the most flattering location.

Speaking of flattering, look for good lighting. Especially on sunny days, notice where the shadows are falling to improve the positioning of your subject to catch the most light and have the shadow opposite of you. This is essential for the features like musculature and coloration to be obvious in the photos. The camera will never be as sensitive as your eye. On cloudy days or indoors, use the flash!

Be patient, but be smart. If the subject is anxious and dancing, don’t wait for the perfect shot. Take a MILLION pictures. A few of them will turn out.

Position yourself in the best spot to capture the horse without distortion.
For profile shots, stand facing the horse, just behind the shoulder. Point the camera toward the shoulder. That way there is no curve or distortion. If the horse is small, or the background is distracting, knell down and take the photos. That will have the horse fill most of the frame.
For headshots, be in line with the horse’s cheek. If you are positioned too far forward, the muzzle will be large and the ears / neck will be disproportionately small.

Don’t wait for the perfect ear position. This can be especially frustating if you are working with a camera with a slow shutter speed - from the time you "see" what you want, to the time you "press" the button, to the time the camera "clicks" the photo could be several seconds. Just take a bunch of photos. Or, if the horse is concerned about something behind it and keeps turning its ears back to hear, considering turning the horse around where you can use that distraction to your advantage.


I hope these hard learned lessons help you to enjoy your horse.

The value of unsoundness

As appraisers, we are often asked to appraise horses that are unsound in some way. With age, competition, and training, horses are expected to develop "issues." Some of these can be treated with minor maintenance, and others require more invasive efforts to continue a horse's competitive career.

It would be uncommon for an aged show horse to withstand the rigors of a competitive discipline without some maintenance (supplements, cold hosing, hock injections are a few examples) and even more unusual for a show ring veteran to be “completely sound.” I would be shocked to find a veterinarian to declare one as such.

Many owners are choosing to donate their serviceably sound horses to equestrian programs and non-profit organizations. These groups benefit from the time constrains and “it’s disposable” attitude of the competitive horse world. Horses with treatable injuries or which require maintenance are welcome additions to most programs. For a little TLC and some (often donated) veterinary service, they can add a talented, well trained mount to their stable.

If a horse is unsound with a poor prognosis for recovery, it may be more difficult to donate. A non-profit may not be willing to take on the burden of caring for a horse they cannot ride, but a school with a veterinary program may relish the opportunity to give students a real-life example to treat. If you are considering donation, research the options carefully. Some programs will notify the original owner if the horse is no longer suitable for their purpose; however, many just sell the horse without notification. And, vet schools may try untested treatments or even practice euthanasia. Know what your horse might experience, and determine what you can live with, before making the final decision.

In summary, we regularly appraise horses that have suffered injuries or experienced soundness issues. The value is determined based on the horse as perfect, then subtracting for the type of care they require and any the prospects for their future. A $100k horse which develops ringbone may be worth less to a buyer than one who develops navicular, because the latter is often managed with improved shoeing and drug therapy.

The often overlooked TRAIL HORSE

I have seen an increase in the number of inquiries from casual or weekend riders. While competitions report a decline in entries, and showing becomes more expensive, it seems that backyard horse lovers are thriving.

And why not? There's never been a better time to buy a horse - and get the most for your money. Prices of mid-range show horses have fallen so much that even weekend Trail Riders can afford something with miles and show ring achievements. A mare with over 100 AQHA points would have likely brought $20-25k back in 2007. The owners could no longer afford to show her, so she sat in a pasture for a year, and then sold in April for $7,500.

If you are a seller, make sure you honestly evaluate your horse's potential to become a backyard pet, casual riding companion, or mount for a novice horse person. Show horses are used to routine and a regular exercise program. Not all of them will transition to a seemingly idyllic life of daily turn out and just one or two rides a week. Even fewer will relish the opportunity to explore unknown territory outside of the arena without balking.

This is a great opportunity to help your show horse stay mentally young by incorporating a trail ride or "out of arena" work into your regular program. There's a recent article in Horse & Rider where Al Dunning talks about the value of getting your horse out and about.

And, if you're looking to buy: make sure you test the horse doing whatever you plan to do, whether that be on the trails in a national park, along the beach at a remote coastal area, or down the road of your residential development. Your safety and the horse's happiness and willingness to do the job are paramount in your buying decision.

I got the chance to participate in a private trail ride at the foot of beautiful mountains in New York. My mount was a sturdy solid black gelding with good ground manners and patience. I felt confident and safe riding him along unfamiliar terrain, through streams, under branches, up hills, and around large rolling fields. He many not look like much or be a beautiful mover, but his mind made him priceless...

Get Your "Seller's Tool Kit"

The appraisal business has been good the past few months, with many inquires on appraising diverse stock from imported Warmblood Jumpers to "kid-tested-mother-approved" POA ponies.

With many calls from potential sellers, we are frequently asked, "How should I price my horse?" Sterling is offering a new, simple Market Analysis, to making pricing your horse for sale easier and more effective than ever.

The Market Analysis is a Seller's Tool Kit to pricing your horse fairly. It will provide the details necessary to align your horse's asking price with the shifting market, and substantiate how the asking price was derived, including sales of comparable horses in your geographic area.

For the month of June, we're offering the Market Analysis for just $375. Contact us today for more information. www.equineappraisals.com

How is the economy affecting the value of your horse?

At Sterling Equine Appraisals, we've been hearing this question a great deal lately. It is understandable that horse owners are nervous about how the world economy will impact their individual horse operations.

The exchange rate between the US Dollar and currency of nations from which we frequently import / export horses is especially critical to a stable valuation of American horses. The Euro and Canadian dollar have all been higher than the US dollar in recent times, making horses in the United States less expensive to international parties. This is good for those in the US trying to sell their animals "north of the border" or "across the pond." However, it makes importing horses more expensive for US buyers. This is probably the most favorable time for US buyers to look within our own country for their next prospect. American farms have spent years importing the best performance and bloodstock from Europe. Take advantage of it and find a bargain in your own backyard. Shipping across the US is still less expensive than importation, even if you live near a major port or quarantine facility.

As an equestrian, you may be one of the lucky people at the upper end of the sport that is not terribly impacted by the financial situation of many. But, if you're like most of us, you ride, compete, or breed in the middle market, characterized by horses in the $25,000 to $85,000 range. This market has been significantly impacted by the tightening of the credit markets. Without easy access to home equity lines of credit or uncollateralized personal loans, including credit cards, equestrians in this realm find it harder to finance their next "dream" horse. We're seeing a rise in the number of horses donated to non-profits and schools because the tax benefits of the donation are greater than what the horse could be sold for in a reasonable period of time. Occasionally, the recipients turn around and sell these horses for a deep discount just to raise cash for their programs. We recommend that you contact some of the riding programs in your area or search on-line for horse rescue and adoption facilities.

Money Saving Tip: Ask your insurance agent to review your equine insurance policy. It is possible with the decline in the middle market that your horse may be over-valued, and therefore over-insured. You could potentially be paying a higher premium necessary.

Overall, our sense is that the horse market is still strong and interest in horses has not waned. While some may be cutting back on the distance they're willing to travel, there are still plenty of active equestrians and available horses. Sellers are also being more flexible, arranging payment plans or offering leases with the option to buy. If you are trying to sell a horse, consider how you can make it more affordable for a newcomer to get into this exciting sport. Maybe offering the first month of board free with purchase could help close a sale that would otherwise be lost when the buyer realizes the old adage, "The purchase price is the least expensive part of horse ownership." But, expect that you will hear from many potential buyers before your horse actually sells. This should not frustrate you (but it will); it should be a good time to polish your marketing and salesmanship skills.

Visit our website at http://www.equineappraisals.com/ and make sure to check out our Frequently Asked Questions page for the most up to date information and insights on the horse market. We welcome your feedback and questions on our opinions. Thanks for reading!

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