Why should I sell at auction?

Posted On Tuesday, 21 January 2014 09:10 Published by
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Auctions were viewed merely as a forced mechanism for recouping bad debt. Today, many freely choose to sell their assets at auction, given the inherent benefits associated with this method of selling.

Roy LazarusGone are the days when auctions were viewed merely as a forced mechanism for recouping bad debt.

Today, many freely choose to sell their assets at auction, given the inherent benefits associated with this method of selling. The following are just a few of the advantages those seeking to sell their assets should keep in mind, says Park Village Auctions' Roy Lazarus:

• Quick turnaround time: An auction is immediate. It happens at a set time and is completed during that time. In other words, sellers don't have to wait on tenterhooks indefinitely, wondering if their assets are going to sell. The selling process is further streamlined by the fact that suspensive conditions don't apply at auctions.

• You decide when and where your assets go under the hammer: The auction house will provide the seller with a schedule of upcoming auctions, outlining where and when they will take place. All the seller has to do is select the auction that suits them best.

• Comprehensive marketing: Part of successfully conducting an auction is marketing it in such a way that it will grab the attention of as many bidders as possible. Generally speaking, auctioneers possess a comprehensive database which they use to market assets. Pamphlets, online mailers, newsletters, websites and outdoor banners are all examples of the type of marketing tools which can be used to great effect.

• Buyers come prepared to buy: Generally, bidders attend auctions with a view to purchasing specific goods, and ensure they have the funds to do so. This is particularly advantageous in terms of real-estate auctions, as buyers have to pay a deposit to bid, which goes a long way towards weeding out those who aren't serious about buying.

• No haggling: At auctions, there is no haggling over the price. When buyers bid, they do so in the knowledge that they are making a commitment to buy an asset at a certain price, without negotiation.

• No loose ends: Typically, loose assets are sold at an auction company's premises or a central, pre-determined address, which means sellers don't have to store anything or clean up after an auction. This saves sellers money too.

• Bidding wars: While auctions typically deliver fair market value, the price of an asset occasionally gets driven up still higher by people caught up in the competitiveness of the moment. This is referred to as auction fever, and is every auctioneer's dream.

• An exciting atmosphere: Sales excite people. One need only refer to the Boxing Day sales in the UK to confirm this point. The same is true of auctions. Crowds of people and lively auctioneers draw people in and make them feel like acquiring assets.

• Strong demand: No matter the economic climate, there will always be bargain-hunters on the lookout for quality goods.

• Cash in hand: More and more people are turning to auctions to unlock cash quickly, through converting unwanted assets into cash. Once sold, sellers receive the proceeds in a very short time, freeing them up financially for other ventures.

• Greater reach: In 2011, PVA introduced an online bidding system. Through the system, assets can be sold live to bidders anywhere in the world at the click of a mouse.

AUCTION FEVER: Auctions deliver fair market value, says Park Village Auctions' Roy Lazarus.

Last modified on Tuesday, 21 January 2014 09:33

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