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Buying at auctions

Tricia Johnson

28 September, 2000

Difficult trading conditions - both privately and at auction - have been a feature of the sport horse market for several years, and, although one reason may be that too many horses are being produced, another is undoubtedly unrealistic valuation.

Many sport horse auctions are characterised by the words "not sold" appearing in the listings with monotonous regularity. Sometimes, this is because an animal has failed the vet, but, more often, it is the result of over-valuation.

This situation depresses vendors, buyers and auctioneers alike.

Richard Botterill - auctioneer

Richard Botterill of sport horse auctioneer Russell Baldwin Bright says: "In realistic terms, the value of a horse is the price another person is prepared to pay for that particular individual. There are several areas to be addressed in valuation, but the end picture is an overall view of the horse and its suitability for its chosen discipline."

Russell Baldwin Bright sells more than 5,000horses each year, ranging from £100 pony foals to £43,000 dressage horses.

"Many potential purchasers, no matter what their aspirations, are amateurs," says Richard. "The most important factor is that a horse is produced from stock which has proven ability to deliver good temperament, conformation and rideability. I would always put a greater value on a horse from a performance-tested family."

British sport horse purchasers have never supported auctions to the degree of people on the continent, although sales such as the Equilibra dressage auction are now seeing good prices and an acceptable clearance rate.

At the lower end of the market, trade is more difficult. "Any vices will reduce a horse's value considerably - particularly if it is untried," maintains Richard. "But horses with proven form can sometimes be forgiven a vice, as top-class animals are very hard to find.

"A quality four-year-old for eventing or showing would probably cost around £2,000 to £4,000 and a three-year-old £1,000 to £3,000. Horses of lesser conformation could go down to around £500 and those with top-class potential would be £5,000 to £7,000, although some make as much as £17,500.

"Untried horses generally have a lesser value, as buyers usually want the finished article. The value of ready-made horses also differs depending on ability.

"The value can also be affected by the horse's ultimate destination: for example, a five-year-old show jumper which will compete successfully without becoming top-class might command £12,000 in Britain, but to a client in South America, where the quality of horses and competition is not so high, he may be worth £25,000.

"One advantage of buying at a well-organised auction is the opportunity to assess a horse alongside a large number of others. There are many professional producers who buy untried three- and four-year-olds at auctions, produce and compete them and then re-offer them privately.

"Vendors shouldalso realise that well-mannered horses in good condition and properly shod will have a greater value. Presentation is the key - whether at auction or privately."

Richard maintains that prices for top-class animals are on the up. "The more successful we become in breeding top-quality sport horses, so their values will rise; recognised breeding and performance increases international interest."

Cathy Wood - producer

Devon-based Cathy Wood has sold horses successfully for many years, privately and at sales such as the Festival of the Horse at Malvern, where she achieved the top price two years ago with Thomastown.

"You have to look at your own stock with your eyes wide open -not through rose-tinted spectacles," she says. "Assess their strengths and weaknesses and value them accordingly; for example, a horse I sold for an owner last year was possibly the most talented I have ever had in my yard. But he had two small sarcoids, which we declared, and this was reflected in his price - he was sold for around half the amount I would normally have put on as a reserve.

"I try to put a buyer's hat on and ask myself how much I would pay. You can't value a horse on what it has cost you - some will earn more thantheir cost, while others will be a bitter pill to swallow." Cathy feels that the reserve price should be set responsibly.

"I set my reserve as the lowest amount I am prepared to accept, not what I think the horse is worth, as you have to be realistic. I think there has been too much hype about continental prices - it would be lovely if ours were as high, but that just isn't so.

"Exceptional horses, or even good ones, will always sell. People often pay more for potential and I likethe concept of selling three-year-olds at the back end of the year, when people can see them loose jumping.

"We tend to sell our home-bred horses privately as foals and the key is to value them realistically. You can't expect someone to pay asmuch for a potential riding club horse as for a top dressage foal. You also can't ask someone to pay £3,000 or £4,000 for a show hunter foal - it simply isn't viable.

"We also breed for temperament - the most spectacular horse in the world is no good if you can't train him."Attitude counts, too. I sell cars for a living and nothing is too much trouble for our customers. But when people sell horses, they often seem to think they are doing the customer a favour."

Sandra Biddlecombe - dealer

Sandra Biddlecombe has been selling home-bred and imported sport horses for many years. She sells at auction as well as privately, and one of her best sales was of a £16,000 Dutch dressage prospect at the Equilibra sale. She, too, values temperament highly.

"He was worth his money because he was a very nice "person" and trainable - as well as being a good mover. He had been in a professional yard for 12 months, so he could do the job.

"This was the first timeI had sold a "made" horse at a sale. When you keep a horse longer, you take a risk, as you invest a lot more money in it.

"When I am setting a price, I think of what the horse is worth to me at home and try to be realistic. I also bear in mindthat anyone can go to the continent and buy a nice horse, so I can't afford to be silly - but if I do have a special horse, I will put a special price on him."

Nicky Stephens - event rider

Former international event rider Nicky Stephens has bought literally hundreds of horses at auction.

"The first things I look for are whether the horse has the conformation to do his job and if he has a kind attitude. Without these two things, you have nothing.

"The only conformation faults which lower a horse's value to me are those which could affect his soundness later on, such as sickle hocks, badly-conformed limbs or back at the knee - other faults, such as long backs or straight shoulders, only come into it if I am looking for a show horse.

"The horse's temperament is vital. A horse with a good mind, but perhaps limited scope, is worth more than one which has all the ability in the world, but doesn't try.

"If I am buying for myself or need a horse to do a specific job, I wouldn¨t necessarily mind if it didn't pass the vet as long as it passed on the important aspects - but this would lower the value.

"Good breeding lines can also make a difference, but not to a gelding with bad conformation or an attitude problem. A horse must live up to its breeding.

"Horses tend to be overvalued. If I am buying a four-year-old, I expect him to be green - but when a seven- or eight-year-old won¨t go round a small course of jumps, I would be very wary. These horses often have ridiculous reserves, too.

"Production is the other factor. Professional buyers will be able to see past poor condition on a raw three-year-old, but most buyers go for well-presented animals.

"But, at the end of the day, a horse is worth what someone is prepared to pay for it."

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