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Appraising Equine Properties

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We are located in an area known for beautiful horse properties in North Texas.  We are often engaged in appraising some of these equine properties.  I personally love horses and always love these assignments although they can be more complex and challenging. Here are some of the key factors that impact an appraisal of an equine property.

For an appraisal, the sales comparison approach will best determine the fair market value of a property.  For the sales approach, appraisers will search the market for sales of similar equine properties that sold hopefully within the past 12 months.  This can be challenging as equine properties will vary greatly in the amount of acreage, equine facilities, and site, style or age of the residence.

To give you an example, I ran the numbers for the past 2 years for sales within our local MLS that are indicated as having equestrian amenities for four counties located north of the DFW metroplex, the counties of Denton, Collin, Cooke and Grayson Counties.