5 Key Advantages of Selling Assets at Auction

A sale of assets is when a business owner or company director sells commercial assets, such as property, equipment, vehicles and machinery. It can also include intangible assets like intellectual property.  

The asset sale enables the seller to raise money to reinvest in their business, while the buyer gets access to high-quality used assets for a far lower cost than if they were new. 

Each sales method has its distinct advantages and disadvantages. However, in recent years, asset auctions have become a very popular way of selling machinery, vehicles, equipment, property and other commercial assets. Here we look at why.  

Your assets are seen by the largest possible pool of buyers 

Asset auctions, and particularly online auctions, tend to have the largest pool of prospective buyers of all the sales types. There’s no requirement to attend the auction in person, so they can attract buyers from across the UK and even overseas. That encourages more bids and drives up the sale price. 

For example, at Eddisons Asset Auctions, we advertise assets to our existing network of 30,000 prospective buyers and more widely using digital and offline media. That’s why, last year alone, over 10 million prospective buyers viewed our online asset sales.  

You can sell quickly 

Auctions are an excellent option if you want a quick sale. After contacting an auction house, it will create a detailed sales listing for your asset, market it widely and schedule it for auction.  

Online auctions can last anything from 48 hours to 30 days, depending on the type of asset and the auction house. When the sale closes, the highest bidder is legally obliged to purchase the asset. They have just 24 hours to pay the amount in full, and there’s no cooling-off period. That ensures the seller receives their money quickly, and you can sell multiple assets at the same time.  

You receive professional assistance throughout 

Some sales methods, such as classified ads, can be resource- and time-intensive. You have to create the listing, respond to enquiries and arrange physical inspections, which distracts you and your team from your day-to-day tasks. At auction, all that is done for you.  

The auction house will value the asset, create the sales listing, market the asset and respond to all queries from prospective buyers. They will also arrange and attend physical inspections. That enables you to concentrate on running your business. 

You can secure higher returns  

The competitive bidding process in well-attended and established auctions can often lead to a higher price than the initial valuation. That’s particularly the case for high-quality, in-demand assets. 

You can also set a reserve price, which is the lowest price you’re willing to sell the asset for. If the reserve price isn’t met, the asset won’t sell. That prevents you from achieving a return you’re not happy with.  

There are no negotiations  

Another advantage of selling assets at auction is there’s no requirement to enter into potentially lengthy negotiations. Once the auction ends, the winner pays the sum they bid.  

That means you don’t waste time going back and forth with those who are not serious buyers or want to reduce the price to an unacceptable level. It also allows for a quicker sale and brings transparency.