By Tania Millen, BSc, MJ

The top selling yearling at the 2024 Canadian Thoroughbred Horse Society (Ontario Division) Sale was an unnamed colt that was purchased for $250,000. In contrast, at another auction this fall a yearling may have sold for just a few hundred dollars.

That huge range of values reflects the potential advantages and disadvantages of auctions for buyers and sellers. For buyers with robust budgets, high quality sales can be great places to find horses unavailable elsewhere. Meanwhile, auctions that typically sell lower quality horses can be a good place to find a deal. However, not all horse auctions require veterinary certificates or x-rays for horses to be entered in the sale. There is often no drug testing and soundness guarantees are rare. Plus, in the heat of the moment, it’s easy for buyers to pay more than they’ve budgeted for, or more than the horse would be worth in a private sale. Knowing this price advantage, sellers often choose to sell their top horses at auction, hoping for a higher price. It’s this potential to sell for top dollar, or find a bargain, that draws buyers and sellers to the auction ring.

It’s easy to get carried away and bid beyond your limit at an auction sale. Determine your budget, set a firm maximum, and commit to it. Photo: Dreamstime/Accept001

Quality Sells

The Canadian Warmblood Horse Breeders Association (CWHBA) Fall Classic Breeders’ Sale, Alberta Chapter, is the longest running Warmblood auction in North America. The 2024 auction held October 18 – 21, 2024 was its 30th year, and surpassed previous sales with averages up in every category and a gross dollar value of over $730,000 CAD. The auction sold broodmares, weanlings, yearlings, two-year-olds, prospects aged three to six-years-old, plus performance horses with show records. The organizers try to provide as much information as possible to buyers. The auction has prepurchase examination results available online, along with a full set of radiographs and a current Coggins test.

“It’s exciting that the CWHBA auction has been underway for the same length of time as some reputable auctions in Europe,” says Kailey Parkin, Secretary of the CWHBA Alberta Chapter. “We have a lot of very reputable breeders in Alberta that have been producing high-quality Warmbloods for a really long time,” she explains. “So, we know there are repeat buyers that come to the auction every year.

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“Potential buyers can view and try the horses at the seller’s farm before the sale, plus the sellers are available during the auction to discuss their horses with prospective buyers,” says Parkin.

The CWHBA auction typifies sales that cater to a particular clientele — buyers that demand more certainty and less risk. But every sale is different and while buyers have to decide what auctions to attend to find a horse in their price range, sellers have to determine what auction is best for the horse they’re trying to sell.

The Sellers’ View

Some sales have a selection process whereby horses are screened for suitability prior to entry and only specific horses are selected for the sale. Other sales are only open to certain sellers. There are sales that specialize in prospects, performance, or competition horses. Production sales are designed for breeders or ranches while auction marts sell whatever horses turn up on the day of the sale. So how do sellers choose?

A lovely Warmblood mare and foal are presented to potential buyers at an auction. Photo: Dreamstie/Pfleugler

“I don’t sell at auction very much,” says Genie Lynch who operates Pushin’ 40 Horse Training in Valleyview, Alberta. “I prefer to sell privately, but we chose the North Country Select Sale in Edmonton this fall because we were looking for a place where we could sell our prospects — the four- and five-year-olds we’ve been pasture-roping on.

“When you’re selling prospects privately you get a lot of people who may not have the skills to take the horse further,” explains Lynch. “We were looking for an avenue to get them into the right hands.”

However, entering horses in a select sale can be time-consuming and expensive. It cost Lynch $1,500 to enter two of her horses, plus all the horses were required to pass a live selection process.

“We drove three hours so they could look at the horses without saddles, look at their conformation, get a feel for their attitude, and then I saddled them up and put them through their paces,” says Lynch. “There are just over 20 horses in the sale, so they were pretty picky.”

Additional costs include an onsite prepurchase veterinary examination the day before the sale, plus sellers pay 7.5 percent of the final sale price or $1,000 if they decide not to sell their horse.

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It’s a time-consuming process, too. The delay between entering a horse in a sale and selling the animal can range from three to six months. There’s risk in that, as horses have a penchant for getting injured at inopportune times.

Horse auctions have a long and storied history dating back centuries, with roots in ancient civilizations. Societies like the Greeks and Romans held auctions to trade horses, which were essential at the time for transportation, agriculture, and warfare. This illustration of a man examining the knees of an apprehensive-looking horse at a livestock auction is from The Family Friend published by S.W. Partridge & Co., London, 1874. Photo: iStock/Whitemay

Auctions are advantageous for sellers as well. Multiple horses can be sold at one time while someone else professionally markets the horse to a wider audience. The price of entry often includes videography, photography, marketing, and the rest of sales process — a boon for busy horse professionals who may not have the media skills to show their horses effectively.

Just as auctions can be beneficial for sellers, particularly those who receive top dollar for their horse, there are advantages for buyers.

Buyer: Bid and Be Wary

Horse auctions carry a stigma, some of which is well-founded. Auctions that deal in lower quality horses sell whatever animals arrive at the auction market on the day of the sale. They usually have limited information about the horses they sell and are often the place where the so-called “meat man” buys stock for slaughter. Horses with soundness issues, training problems, or other liabilities that may not be obvious are often sold at these auctions. They’re high-risk auctions for buyers, but some horse people purposely attend them looking for deals.

Illustration of the sale of horses of the 10th Hussars (a class of light cavalry) at Tattersalls Auction, 1870; Crusader is under the hammer. Founded in 1766 by Richard Tattersall (1724-1795), today Tattersalls is the leading bloodstock auctioneer in Europe, selling 10,000 horses a year. Photo: iStock/Duncan1890

“You don’t get a ton of information at local auctions so you’re taking a bit of a chance,” says Roxanne Sawatsky of Spiritwood, Saskatchewan. She’s bought several horses from Saskatchewan auctions and says buyers need to have a good eye and be wary.

“I went to one sale and there was a yearling that I really liked,” says Sawatsky. “But the breeder didn’t impress me because as soon as he noticed me looking at her front legs, he shifted her.”

Related: Why a Pre-Purchase Exam (Vetting) is Essential When Buying a Horse

Eventually Sawatsky determined that the filly’s front legs weren’t straight.

“He was trying to hide that,” Sawatsky says.

Yet lower-level auctions can be a great place for knowledgeable horse people to buy cheap horses.

“I’m pretty picky, so although I go to auctions with the intent to buy, I won’t buy if I don’t see anything that I connect with,” says Emma Baldwin, an equine bodyworker who lives in Bragg Creek, Alberta. She considers herself a knowledgeable horse person who knows what she’s looking at. She buys horses at local auctions because of the low prices, ability to see many horses in one place, and simplicity of the sale. She admits there’s significant risk and says those with less horse knowledge may be taking much higher risks than they recognize.

“If I’m not spending much money, there’s going to be something wrong with the horse,” Baldwin explains. “Is that a minor lameness which is going to be manageable? Or is the horse going to have heaves or something like that? You never know.”

Photo: Dreamstime/Sven Bachstroem

Part of this uncertainty stems from the fact that many horse owners have easy access to pharmaceuticals like phenylbutazone (bute), firocoxib (Previcox), or dexamethasone in their tack rooms. These drugs are easily administered, can go undetected, and may mask serious underlying issues.

Related: Buying a Horse?

“I’ve seen drugged horses,” says Baldwin. “That’s a risk you’re taking at lower end auctions.”

For those drawn to the potential of finding a diamond-in-the-rough for a great price, Baldwin says, “be ready to take the risk. You really don’t know what you’re getting and there is probably a reason the horse is there.

A Thoroughbred yearling is sold at the well-known Keeneland Yearling Sales in Lexington, Kentucky, founded in 1935. This sale, held in September, is the world’s largest sale of yearlings. Photo: Alamy/Barry Fowler

“Also, if you don’t have a good knowledge of conformation and lameness and are looking for your next forever prospect, take somebody with you or just don’t shop at low level auctions,” she advises. “Finally, have a budget and don’t bid any higher.”

Best Practices for Buyers

There are advantages and disadvantages to buying at auctions and sales. Auctions can be exciting to watch and participate in, but being aware of the risks will help ensure a positive purchasing experience. Here are some tips:

• Know what you’re looking for. There’s a horse for everyone but not at every sale. Make a list of “must haves” and a list of “nice to haves,” then consider each horse with those lists in mind.
• Consider your risk tolerance. Consider how much information you need to be comfortable buying. If the sale doesn’t provide that information, don’t bid.
• Understand the rules. Not every auction provides veterinary information, or sometimes, any information at all. It’s imperative to understand the rules of the sale including the type of information available for each horse, fees, and when you have to pay and transport the horse if you’re the highest bidder.
• Speak to sellers. Most sellers are looking for the right buyer for their horse, so chatting with them is a great way to find out whether the horse they’re selling may be suitable. If a seller seems shady, perhaps they are, and you can choose not to bid on their horse.
• View and try horses. It’s difficult to determine whether a horse’s personality and skills are what you’re looking for without actually interacting with them. Plan to visit the horse in the flesh before the sale. If possible, try horses out at their own barn so you know what they’re like in their usual surroundings. Then try them again at the sale, to see whether they act differently.
• Have a budget and stick to it. It’s easy to get caught up in the moment and continue bidding beyond your budget, particularly at online auctions. Set a hard limit of what you’re willing to spend and don’t bid beyond it. Also, try to review previous sale prices so that you’re not trying to purchase a horse for $10,000 at a sale which averages $50,000.

Photo: iStock/Stocknshares

There are many reputable sales in Canada where top-quality horses are sold to enthusiastic buyers by honest sellers. It’s those sales that continue to diminish the stigma that horse people hold about auctions. Meanwhile, horses down on their luck will likely continue to be sold at low-end auctions where occasional buyers with high risk tolerance will be fortunate to find great deals and forever partners.

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Main photo: Alamy/ Agencja Fotograficzna Caro