Selling Assets

[salsa]

So I finally got the appraisal back on the one horse I need to sell. Came back at $11,500. I thought I had someone to buy him for $10,000, but that isn't going to go through now. Every month longer I keep him it will be another $450.00. So I guess my questions are this.

- If the trustee would take the horse and sell, it would be at an auction?
- If I tried to sell the horse over the next couple months, but worked out a deal with where is boarded, that the board would be paid when he was sold, would that fly?

Any other suggestions. I really need to sell him to get out from under the monthly expenses and have some money for vehicle downpayments and try and file by April. Lately, nothing is going right.

[HHM]

Trustees generally are not interested in horses, for the very reason you want to get rid of it, the carrying cost. So even if the horse is conceivably worth something, few trustees will go to the trouble.

But yes, if the trustee were to try, he would try to find some auction in which to sell the horse.

All you can do is ask the stable if they will accept that arrangement (I doubt it). A better offer would be to have the stable sell the horse for you for a portion of proceeds and rent. (it just depends on the level of sophistication of the stable).

[salsa]

The horse needs to go back into training if I have any hope of selling him, so add another $350.00 on top of the $450.00. I may be able to work out a deal that with the trainer where that amount is paid off and her commission when he is sold. I'll need to discuss with her.

So as far as price, are you thinking if I could sell even for 6,000 to 7,000 that wouldn't be questioned?

[LadyInTheRed]

Remember, the appraiser's value is only an estimate. The only way to determine the value of the horse is to offer it for sale to the public. The true market value is what a willing buyer will pay and what a willing seller will accept. If you need to pay for training to sell the horse at the appraised value, the appaisal is high. As long as you sell the horse in an arms length transaction (i.e., to a stranger) after advertising it in whatever is a reasonable way to offer a horse for sale, you'll be fine. Having the stable sell it in exchange for a commission is a great suggestion. Just keep documentation of your efforts to sell the horse. I wouldn't put money into training unless you are pretty certain it will increase the value more than the cost of training. Even then, I might not bother.

[salsa]

Well I'm waiting for an offer from the trainer. It would do a couple things:

1. A quick sale, with no board/shoeing or anything anymore. Would save a couple thousand.
2. No vet check. Anyone else who buys him, would get that. If something didn't look good(he has kinda funny front feet), buyers may fall through resulting in a longer delay till sale.
3. If I took him to a auction/sale, (which is what a trustee would do), maybe a couple thousand only.

Even if I get an offer of $6,000. I will take if I can get out from under any bills immediately. I'm guessing worst case scenario, I have to pay 3000 to 4000 back over the 5 years to make up for it.

[despritfreya]

Salsa,

All of the comments are valid. The reality is, just because an appraiser gave you an opinion of value, that opinion may not be what the market will produce. You have indicated that you need to put training into the horse before being able to get the appraised price. That tells me the appraisal did not take into consideration the lack of training or, maybe, the time it would take to bring the horse back to the level it once was. As you know, for every month a horse is off training it takes two months to get back to the level you had.

My recommendation, for what it is worth: If the appraised value is $11,500 then put up an ad at dreamhorse.com or equinenow.com or even Craigs List. Maybe even try posting flyers at local shows since folks in the area may be familiar with the quality of the horse. Before selling the horse to the barn see what offers, if any, you get. Document everything. Do this for about 1 or 2 months - assuming you can hold off on the bk and can handle the expense for that time (without the cost of training). If nothing comes in close to the appraised value then, by all means, cut your deal with the trainer.

As to the comment that a Trustee does not want the horse, that is correct to an extent. I was once asked by a Trustee my opinion of some debtor's (not my client) string of horses. The debtor valued them at $3k each but at the 341 testified that they were show hunters and were currently showing in Indio. The location alone told me that the values were in excess of least $10k, and probably a lot higher. Trustee eventually took control and sold them - but, this was before the economy tanked and such horses were easy to sell. I also had a case where my client had an interest in a rather large herd of cattle. Trustee eventually sold them as my client no longer wanted to deal with the expense. So, it just depends.

Des.