Understanding Horse Prices

[Bluey]

A team roping horse trainer tells me that he used to buy started horses with some ranch experience but green for $3-4000, then sell them for $8-12,000.
Now he has to pay $8-10,000 for one and about a year later, after all that training and ranch riding he sells for $15-18,000, other than the rare very pretty super star those may bring over $20,000.

He thinks buyers just have to get used to the new prices, himself too, being on both ends.
It takes that much $ to make it worth to train and that training is what buyers of finished horses that don’t need professional training any more are paying for.

[candyappy]

@Tha_Ridge

They are not overpriced if people are paying the prices. I hate this line of thinking.

Just because people are paying the inflated prices doesn’t mean the horses are actually worth it. They really have no choice because everyone is pricing them the same. If you want a horse you come up with the cash. Or finance it ( which is worse).

Like buying hay or vehicles or land or homes. It has all escalated at an alarming rate in a short amount of time. People still have to suck it up and buy if you have to have it/ want it bad enough but it is overpriced.

Granted, I personally haven’t been horse shopping in a long time but I do look and the rise in prices to what is the new normal, is just not justified in my book.

[NoSuchPerson]

@candyappy

Just because people are paying the inflated prices doesn’t mean the horses are actually worth it.

Yes, yes it does. That’s basic economics. An item is “worth” whatever someone will pay for it. The literal definition of market value is “the price or amount that someone is willing to pay in the market.”

[outerbanks77]

@candyappy

Just because people are paying the inflated prices doesn’t mean the horses are actually worth it. They really have no choice because everyone is pricing them the same.

Very few people NEED a horse as it’s a hobby for the vast majority. So the price they are paying is what it is worth to them to own said horse. Very different from paying high prices for food or basic housing.

I’ve been loosely following a local instructor’s quest to find client horses (low level dressage) recently in the mid-high fours. At this point her ask is: a horse, anything that is sound and hopefully started, or at an appropriate age to start, for 8k. I have a horse casually for sale for a little more than that, but a current look at DreamHorse made me think I might bump the asking price up once I get her to a couple more shows and make an actual effort to advertise.

[Paint_Party]

@NoSuchPerson

An item is “worth” whatever someone will pay for it. The literal definition of market value is “the price or amount that someone is willing to pay in the market.”

Absolutely this ^^^

There’s no such thing as a Fixed Pricing Rule for horses. The cost of everything needed to get a horse ready to sell has increased, from feed, fuel and water to training costs and schooling show entry fees. It only makes sense that the asking price of the horse will also rise.

[Tha_Ridge]

@candyappy

People still have to suck it up and buy if you have to have it/ want it bad enough but it is overpriced.

Repeat after me: a horse is a luxury item. Comparing it to, say, a carton of eggs is woefully misguided. I’d be very curious to see your example of an overpriced horse.

[Impractical_Horsewoman]

I think I might call a horse “overpriced” in the sense that I think/know seller may be fudging (even if not technically lying) about its temperament/abilities and asking a higher price tag than the “average” buyer in the area would be willing to pay. Or, sometimes I see horses “for sale” at prices that make me wonder if it’s more of a situation of “I don’t want to sell this horse, but I told my husband/mom I’d get rid of one of my horses” .

As others have said, there is no Blue Book for horses, and sometimes a seller might also “overprice” a horse to make sure the horse lands in a decent situation.

[TheHunterKid90]

I look at it like this.

If I price a horse for $5,000, there’s a few hundred people that can afford that price and are happy to pay for the horse.
If I price that same horse at $15,000, maybe now there’s only 150 people.
The same horse at $25,000, now I only have 50 people that still want my horse.
If I price the horse above what the general market says it’s worth and price it at $35,000, I might have a few come and look at it, it will probably take longer to sell and I have to find the person that just falls head over heels for a red headed mare to get the $35,000.

So many things come into play when pricing a horse. It’s not just, is it worth it?

[endlessclimb]

@candyappy

They really have no choice because everyone is pricing them the same

And why do you think that is? Strictly greed?

Come on.

[Impractical_Horsewoman]

Well, also if I see a horse priced for $5,000 which, by all rights, in the current market should be priced at $15,000, I might start wondering if there’s something the seller isn’t disclosing.

And pricing a horse that will be attractive at $15,000 horse at $35,000 instead will also result in the horse sitting on the farm, eating, needing to be ridden, heck, even a car that you’re selling that’s sitting will still need to be maintained to some degree. In theory, of course, you can keep putting training into the horse (if it’s a younger animal), but that takes time and money on the seller’s part.

[candyappy]

@NoSuchPerson

Yes, yes it does. That’s basic economics. An item is “worth” whatever someone will pay for it. The literal definition of market value is “the price or amount that someone is willing to pay in the market.”

No it means that you have to pay it if you want it. The prices we are paying for food and gas doesn’t mean those things have actually increased in value. It means we are at the mercy of what the current price is.

Call it what you want but we are getting the raw end of the deal and so are people buying horses.

[candyappy]

@endlessclimb

And why do you think that is? Strictly greed?

Come on.

Most people with something to sell are going to price it so they get as much as they possibly can.

For some horse sellers out there, that will be nothing more than greed and taking advantage of grossly inflated prices.

[endlessclimb]

With the cost of everything up, how are you figuring these prices are grossly inflated?

[Christa_P]

The cost of many things, including groceries, hay, grain and other products are going up in big part due to the cost of diesel.

Diesel for tractors on the farm, to move cargo ships, trains, and semi trucks. The world runs on diesel, hence the high cost drives up the price of everything else.

As the cost of supplies goes up so goes horse and boarding prices.

[rulex]

@AdultEmmy

My trainer is new to me. She does do some buying/selling, and I don’t think she is out for commission, but I think maybe our priorities are ever so slightly different. I think she would like me to be on a horse who is well versed in what I’m asking him to do so that I can focus on me.

Since it’s a new relationship, just be really firm about what you want. Sounds like what you want is reasonable. If your trainer thinks the horse is overpriced or not fancy enough, those are things you can override if you like the horse enough.

If your trainer hasn’t done much buying in this new post-covid market, it’s not surprising they may have sticker shock. They may also not be super excited about the horse. But that’s ok too if it’s one you really like. Horse shopping is draining, if you find something you like in your budget, I would go for it even if your trainer feels it’s over priced. Who knows if another suitable one will come along anytime soon, let alone at a price your trainer approves of.

[AdultEmmy]

Thanks all!

Turns out I agree with my trainer on the horse I tried Sunday. Onto the next!

[appendix100]

@endlessclimb

the cost of everything up, how are you figuring these prices are grossly inflated?

Just depends. Got into a discussion with someone awhile back. Discussing horse prices & how much it costs to get a foal on the ground & to riding age
Just because it costs you x to get a foal on the ground & ready to train, does not make the horse worth it. It might, but it is not a given. Two babies with similar breeding costs & stud fees feed etc, may be radically different. The one that got the best of both parents, may very well be worth more than it cost to get it there. The one that got the worst of both parents, is pigeon toed, cow hocked ewe necked & has a nasty temperament is. Ot going to be worth as much as the first one, even though it cost just as much to get it on the ground.

[joiedevie99]

@appendix100

Two babies with similar breeding costs & stud fees feed etc, may be radically different. The one that got the best of both parents, may very well be worth more than it cost to get it there. The one that got the worst of both parents, is pigeon toed, cow hocked ewe necked & has a nasty temperament is. Ot going to be worth as much as the first one, even though it cost just as much to get it on the ground.

This is very true! But it’s also worth realizing that if, on average, the price that the breeder sells the babies for doesn’t exceed the cost, that breeder will go out of business. So, another way to think about it, is that the baseline price for an average, expected foal, has gone up to accommodate increased costs. The best and worst foals will still be above and below that price, respectively.

[red_mares]

It depends on what you’re looking at. There’s been at least a half dozen horses bought or sold in my barn in the last year. None has been over $10K and all are nice ammy or lesson horses, low A type show horses. I got a really nice pony this weekend because of they wanted to sell more than I wanted to buy. I was not going above X dollars. I don’t think anyone was breaking down doors to see this pony, so it was take my offer or pay another month.

If you’re priced out of dressage, maybe try a cheaper discipline like saddleseat.

[MapleBreeze]

Temperament, gaits, show record, time we spemt training tbe horse, knowlege of what we can make that horse into, cost of the horse and money we put into it.

Low fours is a little unrealistic unless youre willing to take on stuff - issues, blemishes, inconsistant contact, green, etc. If thats youre budget contact some cool rescues or go to an auction.

Horses are freaking expensive. Its really hard to train one and sell it for less than low 5s.