Understanding Horse Prices

[AdultEmmy]

I cannot seem to grasp how people price horses. How do you determine price when you’re selling? Or how do you determine, as a buyer, what you think the horse is worth?

I’m looking at a horse this weekend that my trainer doesn’t think is worth the ask, and in her opinion I should be able to get a horse with a good brain, not hot, and with some dressage foundation for my low-mid 4’s budget, but considering I’ve only been looking at horses during the pandemic, I feel like that’s too much to ask on my budget. Is she right? Is the market cooling off enough?

[beowulf]

You price based on market value and market going rate, plus/minus any special consideration like wanting to move quickly or needing a step down careerwise (take off some $$) or stepping up/competitive in showing (add$$).

What discipline is your trainer? The market has slightly cooled but it’s no 2010s market. I think we are looking at a new normal here. Low-mid 4s, assuming you mean $5k or less, might get you an unbroke off-breed, but it won’t get you much in terms of a started horse unless you’re willing to look at a lot of frogs before you find your prince.

Even OTTBs now are going for $5k or more from the very good connections.

[horsepooramateur]

I would say low fours is out of the question, but you could possibly find a sane, green OTTB who the seller has lightly restarted with a “dressage foundation” for mid to high fours. Depends on your location as well - East Coast your search will definitely be difficult for anything under $7000 or with any real mileage/show experience.

[AdultEmmy]

I think Market Value is where I get lost. A horse is worth what someone will pay for it, right?

Good to know. I feel like with my price range I can’t be super picky, and I was surprised to hear from her that I could ask for more out of a horse in this range.

[beowulf]

Anything is worth what someone will pay for it. What is really driving up the prices is demand on a commodity that is becoming increasingly scarce and expensive to produce.

More barns are closing making horse ownership a thinning breed, board is more expensive than ever, fuel is expensive, membership and schooling fees are expensive, so you are seeing it reflected in the final product, a horse that cost $$$ to produce. Plus, I think we are just now really feeling the sting of the market crash in 2008. Following that crash, many breeders and barn owners hung up their spurs for good, which resulted in a deficit of horses being produced that would just now be the perfect age (teens) to be proven for an average amateur to bring along.

[2tempe]

There is no simple answer to market value. But if you read enough ads, there is some general consistency. If you are looking for something in 4 figures, my suspicion is that the market will be primarily quarter horses and (OT)TBs because there are a lot of them. The QHs would likely be ranch types, so not much likelihood of “dressage foundation”.
Then there are fancier horses but with issues: https://www.dreamhorse.com/show_horse.php?horse_id=2240043 . The mare has had tendon surgery and has a club foot. Now these could be non-events with proper farrier work, etc, or Not. Price and flexibility reflect that risk.
Dream Horse and Equine.com both let you put in some price limits/ranges. Read a bunch in your price range and see if you are closer to correct than your trainer, lol. good luck!!

[Jealoushe]

OTTBs are coming off the track LAME and going for low 4’s. Even high 4’s.

Trained horses are high 4s minimum,
More likely low to mid 5s if any decent training.

[AdultEmmy]

Thanks guys! This is more or less what I thought. I’ve had my eye on the market for quite a while, so to hear her opinion surprised me a bit.

[joiedevie99]

East Coast - I don’t see much that is sound, sane, and broke going under $15k. If it is a warmblood, it doesn’t even have to be broke.

[beowulf]

Or sound, most times…

[endlessclimb]

Yeah, that’s WAY low for current market. Not saying it’s not possible with the stars aligning, but very very unlikely.

[Impractical_Horsewoman]

Also, if anything-but especially a horse-is priced substantially below market, you need to ask yourself why. It’s not like stumbling onto a nice JCrew 50% off sale where the stakes are low if there is an unexpected issue.

[AdultEmmy]

Absolutely! And I appreciate everyone’s input.

For the record: this horse I’m looking at is outside of my budget, but I know the owner and we are able to work something out. I think he seems great and I’m really excited to try him. And it isn’t like my trainer is against him, I just thought this was an interesting take and topic. I fully understand that I’m not going to get everything I’m looking for, and that my budget is very limiting.

[Tha_Ridge]

Good luck! Miracles do happen, but everyone else has basically expounded on the current state of the market. I can’t really get much fresh off the track for under $4-5k any more, and then when I’m reselling those, I am usually selling in the $10-12k range. That’s for a healthy, fit OTTB with a basic foundation (dressage and lateral work, started over fences).

[Zevida]

I have a friend who is also shopping and while her budget is much larger than yours her trainer also thinks every horse she goes to look at is overpriced. So maybe it is just a trainer thing - they are pickier, and don’t get the reality of what’s available out there in the market?

[sherian]

excellent summary @beowulf

[GraceLikeRain]

A huge piece for me is who is selling the horse. I’m finding a lot of private sellers have calmed down on the peak covid pricing. They have been priced out of boarding, are over horsed, etc and genuinely need to move along a horse. There also tends to be more flexibility in pricing in some situations due to their emotional attachment and desire to find the right fit. Also some are so poorly marketed that it’s really a $15k horse with an unflattering photo and no video so the seller can’t get anyone to bite at $10k and they are a steal.

I look hard at any trainer or flipper marketing something sound and undersaddle in the four figure range. I’ve absolutely seen some dolls but they are becoming more rare and are often late starts, unique breeds/grade, no show record, or quirky.

I think the days of a slick marketing photo, thorough ad, show record from some local places, sound, and under $10k are essentially dead.

[173north]

I sold a nice gelding with lots of dressage training last month for mid-high fours but… he was an off breed, owner had an unexpected financial crisis so needed to move him ASAP, he’d been chilling for a few months being a horse so we essentially sold him in pasture condition, and he had no show record. A local pro basically snapped him up instantly for a client, with 30 days of fitness and polish I could have sold him for twice what we asked. So the rare gem is out there but high fours/low 5s is going to be a more realistic budget. I just heard about a 6 yr old OTTB with 2 yrs of dressage training, clean x rays, nice in the barn, ammy-friendly for $10k and thought that was a good deal if the horse was as the trainer described.

[Spudsmyguy]

There are still tons of people with small budgets that expect the moon, not meaning you OP. They want under 15 years old, 16+ hands, show record, or if not, going over fences, ammy and beginner friendly, able to live in a pasture, no maintenance, preferably barefoot, and want to spend no more than 5K, oh and in their area. Hell, we all want one of those.

[2bayboys]

@Tha_Ridge

Good luck! Miracles do happen, but everyone else has basically expounded on the current state of the market. I can’t really get much fresh off the track for under $4-5k any more, and then when I’m reselling those, I am usually selling in the $10-12k range. That’s for a healthy, fit OTTB with a basic foundation (dressage and lateral work, started over fences).

Do you mind if I PM you with a pricing question?