In our last article ‘AUCTIONS MADE EASY’ we introduced you to the basics of an auction. We also covered different types of auction methods. This time around, we are going to explore 5 reasons we think you should buy or sell through an auction.
The very purpose of an auction is to gather a group of bidders (i.e. buyers) in one place and have them make open bids for an item on sale. This display of open competition leaves no room for the auctioneer or the seller to collude in order to drive the selling price up. You’ll know for sure if someone has a bigger or smaller offer than you because you can see the bidding as it happens, in real-time. You are a part of the selling process.
2. Windows of Opportunity
Have you ever tried to sell something the conventional way? Then you know that there is no predicting when exactly you will close a deal and make a sale. However, the main appeal of an auction lies in its limited window of opportunity. All bidders are highly motivated into action because if they do not bid on the item on offer, at that specific point in time, they risk missing out. Bidders are motivated to participate because the window of the sale is finite. If you opt to participate in the auction, you may end up with the winning bid. If you opt to stay out of the bidding, you risk not getting another opportunity to purchase that item again.
3. Avoid Time Wasters
Conventional sales often result in the seller having to deal with potential buyers who choose not to commit to purchasing the item on sale. Even if you have spent a long time bargaining with them. On the other hand, when a buyer ultimately commits, you often find that they do not have the money or means to actually pay for the product. Auctions, by design, avoid these types of scenarios. This is because auctions attract serious buyers who opt into the sale by paying a cash deposit that is nominated by the seller. A buyer’s willingness to commit to a sale is tested prior to the auction because the deposit is forfeited should a buyer renege on the sale. In some cases, when the value of the product is very high, buyers may even be required to show proof of funds before they are allowed to join the auction.
4. Bid From Anywhere
These days, you can enjoy the convenience of joining an online auction from the comfort of your home. This is particularly appealing for those who do not have the time or the means to attend a physical auction. With Tirhani Auctioneers’ advanced and reliable online auction platform, there is nothing stopping you from being able to view the item that is on offer and placing a bid on it. If you’re a fan of multitasking, you can even select the option for Tirhani Auctioneers’ online auction system to automatically bid on your behalf.
5. True Value
If you are selling an asset the conventional way, you are usually pressured into accepting the first best offer that you can get. The limit to the value of whatever you are selling is reached a lot faster. This is due to the fact that conventional sales are negotiated downwards from the listed price of an item. On the contrary, auctions “negotiate” the price of an item upwards from a starting bid. Having multiple bidders making offers for an item you are selling reveals the true market value of an item through open competition. If the majority of buyers on the sales floor want to increase their offer for your item, then it is a much more accurate reflection of just how valuable it is to those individuals.
Even More Reasons
We’ve only just scratched the surface. There are many more reasons for you to get involved in either buying or selling through a Tirhani Auctioneers auction of your choice. Keep an eye out for our next post to learn more and give yourself an edge at any of our upcoming auctions.
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