When it comes to valuing horses - whether that is for a sales transaction, equine insurance, donation, divorce, or legal dispute - accuracy and credibility are critical. Yet, many horse owners make the same avoidable mistakes, which can lead to IRS red flags, claim denials, or court battles. Here are three common pitfalls in horse valuations - and how to avoid them.

1. Relying on Personal Opinion Instead of Market Evidence
A reoccurring mistake in horse valuations is relying on personal opinion or gut instinct rather than objective market data. While many trainers, breeders, and agents have strong opinions about value, they often base the value on what they would be willing to sell or buy a horse for – not documented comparable sales. Without verifiable market evidence, these valuations hardly ever hold up in legal, tax, or insurance contexts.

2. Overestimating Sentimental Value
Owners often equate sentimental value with fair market value. However, appraisals must reflect what a willing buyer would reasonably pay a willing seller in the open market. Insurers, courts, and the IRS won’t accept inflated values based on sentimental value or personal attachment.

3. Failing to Hire a Qualified Equine Appraiser
Another common pitfall is relying on someone without formal training in equine appraisals or accreditation with an association. Owners often approach their trainers or agents with their appraisal needs. However, a credible appraisal must follow Uniform Standards of Professional Appraisal Practice (USPAP). A qualified appraiser gathers and analyzes credible comparables and applies consistent methodology to produce a reliable, unbiased opinion of value. Whether you're insuring a valuable performance horse, donating a retired schoolmaster, or resolving a dispute, an accurate and defensible valuation will protect your interests.

Tanja Schnuderl is an accredited Equine Appraiser with the American Society of Equine Appraisers and holds Senior Appraiser status. She also serves as the Director of International Services with The Equine Expert LLC, a multi-discipline equine expert witness and consulting firm with expert equestrians offering legal expert witness and consulting services in court cases and legal matters. Tanja is an expert on Barn Management, Horse Behavior and Appraising. She grew up in Germany and was a paralegal for many years.

For more information on Tanja Schnuderl visit www.theequineexpert.com or reach out via email to [email protected].