Appraising is the act of estimating costs, determining value, forecasting earnings, or providing a non-monetary opinion such as whether or not an item is genuine or fake.
A determination of the monetary worth of the interests, benefits and rights inherent in the ownership of property.
An estimate of the present worth of income-generating property (i.e., investment property, equine breeding programs, or training and boarding facilities).
An estimate of the cost of property (i.e., the cost to produce, reproduce, or buy a property, or to buy an acceptable substitute property).
An estimate of the various other costs associated with the ownership of property (i.e., cost of repairs, etc.).
An opinion regarding the authenticity or quality of property.
An opinion concerning non-monetary, measurable issues (i.e., highest and best use of property/equine, length of time to dispose of property, etc.)
THE DIFINITION OF AN APPRAISAL IS ONE, OR A COMBINATION , 0F THE FOLLOWING:
WHAT ARE THE STEPS IN ACQUIRING A CERTIFIED APPRAISAL
and What Should I Expect From the Appraiser ?
Once you have identified the accredited, certified appraiser you want to hire, call or
email him or her to set up a field inspection. In that initial call or email you will need to
tell the appraiser what you want to be appraised (i.e., horse, livestock, farm equipment, etc.) and what you will be using the appraisal for (i.e., divorce settlement, insurance claim, bankruptcy, etc.).
You will also need to communicate who the intended users of the report are (i.e., yourself and/or your attorney, the insurance agency, the bank, etc.).
Based on the initial information you have provided, the appraiser will assist you in deciding which type of appraisal is necessary to fulfill your need. And at that point he/she should be able to quote you a price for the job.
THERE ARE THREE TYPES OF APPRAISALS FROM WHICH TO CHOOSE.
THE SUMMARY APPRAISAL REPORT
This is the appraisal most commonly used for horses,livestock and farm equipment.
In the finished report you should expect:
1. Cover page
2. Title page
3. Letter of Transmittal
4. Table of Contents
5. Detailed Description of the Appraisal Process
a. Appraisal Method Used
b. Location of Property
6. General Information
a. Intended Use of the Appraisal
b. Intended Users of the Appraisal
c. Purpose of the Appraisal
d. Definition of the Value Determined
e. Assumptions of Limiting Conditions
f. Results of Tests (if any)
7. Detailed Description and Value Estimate of the Subject Property
This appraisal is the least used of the three reports and is recommended when an attorney needs the report to settle a dispute outside of court, when complex issues are
involved,and/or large sums of money are at stake in a litigation action, etc. However, it is
noteworthy that if the dispute IS going to court, this report could work against you in the discovery process in the first stages of litigation. Always ask your attorney before requesting a Self-Contained Appraisal which will go on record.
The Self-Contained Report is the most thorough, complex and difficult report to do,and therefore may cost more than the other two reports.
This report contains all the items that a Summary Appraisal does, but also must include
the mathematical calculations, comparable property descriptions, explanations describing
market conditions, an explanation of the reasoning the appraiser used to arrive at
the value conclusion, bibliography of books or articles used to help establish the
subject property's value, etc.
THE RESTRICTED USE APPRAISAL REPORT
This appraisal report is usually one page, stating a description of the property,the location of the property and the Value Determined. The scope of work for this report is less and therefore should be less expensive.
This report is typically used only by you and possibly your attorney. A Restricted
Use Appraisal is often used to determine whether or not you want to have a more extensive appraisal done. For Example; Your attorney may request this type of report to determine if the value of a particular subject property warrants going to court, or settling out of court.
In this economic climate, you should know what your horse is worth...