Questions have been whether an item for auction can sell before the auction day. In other instances, as well, many have wondered if it is possible to make an offer prior to the day of auction. Well, that is possible. By making a pre-auction offer, you are limiting the auctioneer’s intention to expose the sales to a larger marketplace but your offer has to be worth it. To your own advantage, it gives you a chance ahead of other competitors. You should note that not being able to get the property on the price you offered prior to the auction does not mean that you have lost. It is like having two stones at hand to kill a bird. An auctioneer may decide to try his luck further and get on with the auction, you should still try. The property may still sell at that same price on the auction day.
Selling Prior to Auction
Meanwhile, pre-auction sales are dependent on given circumstances and a lot of variables are usually at play. Ultimately, the power is in the hand of the auctioneer and seller. Some of the reasons why a property may sell before auction are considered below:
Usually, it is best to grab an opportunity that may not come on the auction day as soon as possible. This may look unprofessional but when what is offered is compared to the item to be sold and there is no loss, why not?
Business is an unpredictable enterprise. Sudden changes in government policies such as import and export charges, interest rate and others may influence the attitude of auctioneer/bidder negatively or positively. Thus; a seller may decide to accept the immediate offer rather than wait. On the other hand, some will simply weigh the pre-auction sale offer to know if they should go ahead with the auction day or not.
When interest is not really forthcoming, the seller/auctioneer may be forced to settle with someone with noticeable keen interest before the auction day. Mind you, limited interest in industrial machinery does not mean it is of no quality.
Successfully making an offer before auction
In case you are wondering how you could possibly win your way into successfully making an offer before auction, consider the tips provided below.
Carry out your homework
Once you know the value, you enjoy the following:
- You can know what best offer to push forward and eliminate possible competitors.
- Clear the table of any unpractical emotion that may cause the price to increase.
- Reduce the possibility of a huge premium.
- Stress is avoided.
- Effective time and risk management.
- Ability to control the cost and stay within determined budget.
- Flexible negotiation power than at the auction day.
Study the sales contract
There are many reasons why an industrial auction will sell prior to the stipulated day. So, before you put forward an offer, study the contract and let a lawyer also study and explain the details to you.
Don’t be scared of losing
While you are armed with the appropriate information, you should stick to your plan. Of course, you may lose but that should not scare you into blind purchase.
Walk away willingly
Should you lose your pre auction offer, you should be willing to walk away. No matter how hard it may be, walking away may be the right thing to do after all. If you cannot meet the price that is evidently being taken too far by the seller or auctioneer, it is best you wait for the auction day.
Avoid being forced into Dutch auction
What is meant by this is a situation in which many prospective buyers end up making blind bids prior to the auction. Because no one is aware of what the other is willing to offer, it becomes possible for the auctioneer to lure you into increasing your offer unnecessarily.
Be willing to wait
Time remains a great weapon when it comes to pre-auction sales. Yet, don’t stretch it too far. Take advantage by making your offer at the last minute because being hasty is another way of losing to another prospective bidder.
Keep the cards close to your chest
Never be too quick to show what is in your hand. Without knowing so, you may be lured into revealing your interest to an auctioneer. Any revelation may be a risk that breaks the strength of your negotiation. Say little and this will make it impossible for the auctioneer to reveal your offer to another buyer in a bid to beat you off the bid.
Take out emotion
Being able to engage in pre-auction sales of used industrial machinery is a life time opportunity. When you have your money at hand and you understand value, you should always go for it. However, you should kick emotion out. If you know you cannot avoid being emotional, let an agent handle it on your behalf.
Getting used industrial machinery before the auction day is dependent on a lot of efforts. However, if you want to sweep the auctioneer off his feet and make him sell the industrial machinery before the auction day, you should objectively do the following:
- Make it worthwhile for the seller and auctioneer by having a prepared finance.
- Ask why the machinery is being sold early.
- Request for the sellers’ term and conditions of sales.
- Don’t waste the auctioneer’s time.
- Seek legal advice first.
- Show confidence while evaluating your offer.
- Know when to walk away.
Of course, there are quite a number of fears that buyers are mindful of in relation to pre-auction sales. Hence, it is advisable to always use online auctions when intending to buy equipment for your industry.