agent’s
O
point of view
Buying and Selling Horses in Today’s Economy
By Jeff Johnson
ur economy is not quite as awful as the nightly news or newspaper headlines would have us think. Sure, it isn’t exactly thriving, but contrary to the
headlines and the talking heads, it’s not a total meltdown. The sun will come up tomorrow and for those of us
who love our sport horses, there is a lot to be said for the comfort of riding and spending time with our dream horse that can’t be measured like the performance of a stock. The truth is that quality horses will continue to be both bought and sold. People who want to buy or sell a horse shouldn’t be afraid to go about their business in today’s market. For sellers, the good news is that quality sport horses, even in the softening market, are still selling. Contrary to what sellers whose only marketing strategy is put an ad on one or more websites and wait would tell you, the market is not dead. Sellers, however, do need to realize that horses today are not worth more than they were between 2005 and 2007, at the height of the booming real estate market and easy credit free-for-all. Historically, quality horses have proven to be
reasonably safe havens of value, but like most assets, their value fluctuates with the economic times. Strong economies tighten the supply of quality horses and raise prices; economic slowdowns do the reverse to some extent. The good news today—at least for buyers—is that there is a larger supply of quality horses available at more reasonable prices. Buyers and sellers should first realize that buying and selling a horse should not be an adversarial relationship. Both parties want to exchange an animal they love or want to love that is capable of doing its intended job. By working together towards the same goal, both parties can be successful.
80 January/February 2010
For a glimpse of what’s really going on in the
marketplace, let’s examine three actual recent sales each with different levels of success.
SALE #1: AN UNANTICIPATED LIFE EVENT
A woman had recently purchased the horse of her dreams. He was a beautiful eight-year-old Hanoverian gelding. The owner was unexpectedly diagnosed with a medical condition that was going to curtail her riding activity for a minimum of 24 months. She realized that it would be better to sell him rather than have him stand in a field with her retirees for two years or maybe longer. This horse’s training and condition were excellent. He had a show record and an amateur-perfect brain. The market softened
between her purchase and her decision to sell and she wisely accepted this as a fact and priced the horse to sell. She didn’t want the horse to sit and linger longer than necessary, possibly risking further softening of the market
and incurring additional expenses and risks associated with a possible illness or injury. The result was that this Hanoverian sold at its full initial asking price in three weeks, albeit at a price less than the seller had originally paid. As a wise old cowboy once told me, “a quick nickel is better than a slow dime.”
SALE #2: A MISMATCH FROM THE START
An eight-year-old Hanoverian gelding came on the market because the seller went to Europe in early 2007 and fell in love with a six-year-old, big-moving bay gelding. She imported the horse and started having difficulty sitting his large gaits and adapting herself to his unforgiving sensitive nature. She did not have a professional accompanying her when she bought her new mount nor did she feel that she needed to pay a commission now
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