just in case I find a horse any time soon…just wondering, if it’s priced at 100k, what’s a good offer? Don’t care to go back and forth for days. Want to be fair, but don’t want to leave money on the table. I know about commission and percentages. So what do you think?
Considering your price range I would assume that you have a trainer working with you that you trust so I would look to them for guidance.
Look at the horse first. If it has $100,000.00 on it why are you thnking of offering less if you haven’t even looked at it yet?
If you can’t afford the price on the horse don’t look at it.
Think about percentages. As a seller, would you be willing to sell a horse for 5% less? Has it been for sale for a while and is quirky and hard to ride 20% less? It depends on the horse and what the seller is willing to accept for an easy done deal. As a seller I wouldn’t accept a low offer from someone who wants to take the horse on trial, kickes tires, waffles on an offer etc. If I have a serious buyer who gets the PPE done right away and is ready to make a move and is easy to work with perhaps I a more flexible.
tua37516, thank you for simply answering the question.
I would not be insulted with a offer of $80k. Not saying I would take it, but I would counter offer.
Anything under that I figure they are not serious about playing at the level and I would not counter the offer.
20% is a pretty standard low-ball but asking for a counter offer. Going in lower and you run the risk of the seller walking away.
I agree that percentage of asking price is the way to go. Also, the price can be more negotiable if something negative turns up in the PPE assuming it’s something you’re willing to live with. Most sellers realize that an issue that comes up in a PPE is going to come up again and are willing to entertain lower offers within reason.
You also have to figure a six figure horse has either been already vetted by the seller and/or comes with x-rays and a certain level of soundness that the agent feels comfortable asking that kind of price tag.
I won’t say that stuff won’t come up on a PPE, but I doubt there’s going to be a major surprise that will slash the price that the seller wouldn’t be aware of already.
I will let our trainer decide if the horse is worth the asking price. I have a good idea if it is or not, but will always defer to her on that.
$100k is a reasonable offer on a horse that is priced at $100k.
[QUOTE=SuzieQNutter;8171403]
Look at the horse first. If it has $100,000.00 on it why are you thnking of offering less if you haven’t even looked at it yet?
If you can’t afford the price on the horse don’t look at it.[/QUOTE]
This answer is not particularly helpful. The OP was simply asking for a reasonable range of negotiation for horses priced in the $100k range.
At that price range, negotiating is to be expected.
OP, sorry I do not have an answer for you. You never know what a seller’s situation is. Google is your friend. You can learn tremendous amounts of information which will help you position a reasonable offer.
I really think a lot depends on the horse/situation. If the horse has been for sale for a long time, has a motivated seller, has any quirks or issues, then you could make an offer that is on the lower end of what has been suggested (for example towards the 80K range). Also, take into account how you feel about the pricing. If I look at a horse and it seems like a good value, I’m more likely to offer asking price/close to asking price. If a horse is overpriced my offer would reflect that.
[QUOTE=APirateLooksAtForty;8171709]
$100k is a reasonable offer on a horse that is priced at $100k.[/QUOTE]
I find this comment odd, especially in the context of your post on this thread: http://www.chronofhorse.com/forum/showthread.php?466875-Hanoverian-Verden-Auction-prices-Why-is-it-so-cheap-to-buy-a-warmblood-in-Europe&p=8157314#post8157314
You believe your friend over-priced her horse. Yet you also say a reasonable offer is whatever the seller priced the horse at.
Color me confused.
Yeah depends a lot on the individual and if the horse is priced right or priced so that they can get money out of it. I’ve seen a lot of people price at 90k hoping to get at least 70k out of it, and over price to compensate for negotiation and make you feel like you’re getting a deal. It also depends a lot on PPE results and any quirks the horse has, age, and how long he’s been for sale. Also if you can pay money upfront or with no trial versus over time or with a week+ trial.
If you are really interested you can always tactfully inquire if the seller is negotiable or firm on price, or will entertain reasonable offers to motivated buyers (my kid NEEDS to be in the show ring ASAP). If yes, proceed with trial and PPE then make a good offer. It really comes to seller situation (I have a high priced horse I expected to sell 6 months ago he needs to move, my dog had ACL surgery, I can only afford to pay trainer fees on this for another month etc) OR they firmly believe the horse is work X dollars and won’t sell for a penny less.
Otter, the two comments are completely unrelated. 
unless a price is listed as negotiable, I am personally not a fan of “making an offer.” Agree with the poster above who said you should not be sitting on a horse if you can’t afford its price tag. This is coming from someone who has burned in the past as a seller in this way … A jr hunter child tried my horse, asked us to scratch him from a large class so she could ride him again the next day, then made us a lowball offer. Not fair to the horse or to the seller imho.
But I have no idea what these thoughts have to do with my previous post opining that the current trend in pricing U.S. homebreds is inflated.
As a seller, I typically make it clear that the price is firm, only to avoid those who do not have the funds. I MAY then consider offers if I feel like the buyer is super and would provide a perfect home and/or if something comes up in the vetting that requires that the price be lowered. However, it is very rare that a sales horse over the price of 20k has any sort of vet issue that is not already revealed by my vet prior to the sale.
I would ask if the price is negotiable or firm - if that feels okay to do so. Typically, the horse is advertised as “price is firm,” if it is indeed firm, and if that is not stated, then I am guessing it may be a bit negotiable.
It is very rude to try to negotiate price later in the deal, as in post vetting or after having others look at the horse. That is just bad manners, imho.
As a buyer, I have actually included issues with funds in an initial inquiry. For example, if a horse is priced at 15k and I really feel like the horse is worth closer to 12k, I will politely ask if they will consider a lower price before wasting their time with looking at the horse or asking a ton of questions. I have had many very positive responses to this question - including people asking me what I think the horse is worth. It is all how you phrase and approach it.
Having bought a number of horses over the years, this is something I don’t quite get. My trainers have generally been involved, and seem to limit themselves to finding a horse, not helping me get the best price. (on which they then get less commission…) All have said prices aren’t negotiable.
House prices are negotiable. Car prices negotiable. I could go on. Why is it so often presumed that horse prices aren’t?
The only variation I’ve seen is when horse doesn’t vet so well and suddenly the SELLER was all willing to give me a big price break on the mare.
Winding Down, are you saying you don’t think it’s polite for a buyer to ask to negotiate after the vetting? I would think that would be the time it would be most universally expected.
For background, my experience (which isn’t a heck of a lot, but is something) is in the northeast US dealing with horses in the $1-15k range, and I think that’s really surprising. If the vet points out something that’s bothersome but not a deal-killer, do you expect the buyer to just walk at that point? I guess I see the vetting results as part of the price-setting process, not just a go/no-go decision, and when you go back afterwards to talk turkey you should be ready to write a fat check and maybe have brought a trailer.
For example, if a horse is priced at 15k and I really feel like the horse is worth closer to 12k, I will politely ask if they will consider a lower price before wasting their time with looking at the horse or asking a ton of questions.
I totally agree with that part, though. If you’re wondering about something, a polite, up-front inquiry can work wonders. (Not just when buying horses!) Don’t be pushy, don’t give a 20 minutes of self-deprecating lead-in, just ask. Even if the answer is “no”, there’s now another person in the world who knows you’re shopping, and the answer might be “no, but I have a stablemate who has a horse you might want to check out”.
