Selling at auction is a quick, simple and honorable method for selling goods, which is why it has been around for centuries.  It has the added benefit of facilitating the best return in the shortest time. 

• Nothing compares with the atmosphere and excitement of an auction!
• Only at auction can the true fair-market-value of an item be determined by using the open, competitive-bidding process – and there is no cap on high bids.
• At auction, the price is always right!

Benefits for Sellers:

• Competitive bidding often exceeds the expected value and returns the highest net value on a Seller’s assets.
• Buyers come prepared to buy – they want the items being sold!
• Quick disposal reduces long-term storage and carrying costs, including taxes and maintenance.
• Seller knows exactly when the merchandise will be sold (time-defined sale).
• Seller can provide input on the terms and conditions of the auction.
• An auction removes the seller from the "price negotiation" process.
• An auction provides an aggressive and accelerated marketing method that increases interest and provides higher profits.
• An auction creates a buying frenzy and stimulates competition among buyers.
• Bids are influenced by the judgment of others – meaning that someone else generally wants that same item so drives the price even higher.
• Auctioneering is still the best form of marketing, borne out by the fact that it has been around for thousands of years.
• At auction, you can be confident that you are getting the right price for your items.
• Buyers don’t have a lot of time to procrastinate.  If they do, they may miss out on the item that they really wanted to purchase. 
• Auctions are a quick, profitable and easy way to liquidate anything from personal property, real estate, commercial, industrial, manufacturing or agricultural items.

Benefits for Buyers:

• Smart investments are made at fair market value through competitive bidding.
• Buyer knows that the Seller is fully committed to selling.
• Buyers determine the final purchase price and use their own judgment.
• Auctions provide more efficient means to purchase merchandise.
• Buyers know they are competing on a level playing field and are on the same terms as all other buyers.
• Public intelligence is the best guarantee that you are paying a fair price for the items being sold.

   

  Auction Types

  Absolute Auction (auction without reserve)

  The property is sold to the highest bidder, regardless of price.

  Since a sale is guaranteed, buyer excitement and participation are heightened.

  Generates maximum response from the market place

  Many sellers, including institutions and government agencies have begun to use this method more frequently.

  Minimum Bid Auction

  The auctioneer will accept bids at or above a published minimum price. This minimum price is always stated in the brochure and advertisements and is announced at the auction.

  Reduced risk for seller as the sales price must be above a minimum acceptable level.

  Buyers know they will be able to buy at or above the minimum.

  The seller may, however, limit interest in the auction to only those buyers willing to pay the minimum bid price and therefore it must be low enough to act as an inducement rather than a hindrance.

  Reserve Auction

  In this scenario, the high bid is reduced, in effect to an offer not a sale.  A minimum bid is not published and the seller reserves the right to accept or reject the highest bid. Sellers predetermine the price at which the property will be sold and are not obligated to confirm a sale other than at a price that is entirely acceptable to them.  The main disadvantage of a Reserve Auction is that prospective buyers may not invest the time and expense of due diligence when there is no certainty they will be able to buy the property even if they are the highest bidder!