Buying or Selling a Horse at Auction

Auctions offer many advantages when buying sport horses, for example their is the opportunity to assess the horse alongside a large number of others; it also keeps buyers aware of any current market trends.
Many trainers use this type of specialist horse auction to buy untried three and four year olds, and go on to produce and compete them and then re-sell them privately to make a profit. Sellers also benefit from the auction method of marketing the horse as it is the only way to establish a horse's real market value; it also helps breeders to see whether their breeding program is following market trends.

The process of organizing an auction from entries to completed sales is a complex process that involves many stages. The first stage is for potential sellers to fill in entry forms, as for specialist auctions entry is only accepted on application. Entry fees can vary. Agents for the auction company will select horses, using a strict set of criteria. The selected horses must then pass two full five-stage vettings to be accepted into the auction, the first vetting would be carried out within 28 days of the auction and the second vetting takes takes place at the auction centre.
The next stage is that horses potentially for sale must undergo X-Ray examinations, and meet a set criteria according to the sale. The X-Rays would then be assessed by professionals. Only a horse scoring one or two would be accepted.
The auctioneers then start putting a sale together. Firstly they would research the pedigrees of the horses for sale, going back at least six generations. The catalog is then designed and produced, including photographs and brief descriptions of the lots. It is sent via a mailing list to trainers and previous buyers. Auctioneers will also invest in advertisements in the press to increase awareness and may also use websites to attract foreign buyers. Reserve prices may be discussed by owners and auctioneers, who may help to make a valuation.

At the event the auction company will arrive and convert the hired location into a sales arena. The next day the stables would open for the horses to be viewed, and trial rides would take place during the afternoon. On the final day there would be a presentation of lots. There may also be competitions for horses that were brought from the auction in previous years to encourage buyers to make purchases. the horses in the current auction may also be asked to perform a set dressage test, where judges will score the overall impression the horse gave and critique their performance.
Potential buyers must register prior to the sale. During the auction bidding takes place, the highest bidder takes possession of the horse as long as the reserve price has been met. A 10% buyer premium is then usually added to the sale price.

Auctions are a complex method of sale that utilize many industries to ensure that the selling and buying process runs efficiently and profitably. A lot of money is spent on marketing for auctions. Advertising is highly targeted at the right consumer segment and will often be outsourced to a specialist company. Auctions will also professionally produce their catalogs to show horses in their best light and a professional photographer will also be used to make advertisements eye catching.
These events are also run at sites with a suitable infrastructure, easily accessible, with great space for spectators and hospitality. There will also be sufficient facilities to keep horses and compete. Catering services will also be available as many horse auctions market themselves as exclusive social occasions. Many other vendors will attend auction days and sell complimentary products such as tack and riding wear.
The reliability of auctions for purchasing horses is also increased greatly by the stringent vetting process and using vets closely throughout the selection process, because auction companies need to maintain their reputation for selling quality horses, so they can continue to trade.

There are many ways to buy or sell a horse, but auctions increasing popularity shows they have a proven value as a method of sale. Specialist auctions contribute not only to the equine industry but also the economy in general, through sales, tax and the creation of jobs in ancillary industries. Auctions also contribute to the income of stud farms meaning that high quality sport horses can continue to be bred and produced in the future.