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Clarifying Major Myths About Auctions

July 22, 2020

Though auctions are an excellent way to buy and sell various items at great prices, many people’s perceptions of auctions may still be clouded by misconceptions about what goes down during an auction. Commercial auctions, in particular, are quibbled with several myths that limit both the seller and buyer from maximizing their potential in this one-of-a-kind market outlet.


Here are some of the common misconceptions that should be cleared up:


Myth #1. Items at auctions are either scrap or cost too high

This is the biggest myth regarding auctions that, fortunately, are not based in reality. First of all, items being sold at an auction have all been carefully appraised in order to determine their true value. Equipment that is being sold as-is will not be featured as an auction lot unless it is fully functional and has undergone the required maintenance. Compared to purchasing new machinery, the cost of equipment in auctions is much lower. Reputable auctioneers will never put their names at risk by hosting commercial auctions with junk machinery unless the lot is being explicitly sold for scrap, though this is rare. They ensure that every item being auctioned has been thoroughly checked and inspected for any possible issues.


Myth#2. Selling used items at auctions is a waste of time

The primary reason why commercial auctions are arranged is to provide a great way for used yet working equipment to find a new home and benefit a new owner. So, if you’re a manufacturer desiring to dispose of your used machinery at a much faster rate and better price, then an auction is the best way to go. You will be able to fetch a better price for your assets than if you were to sell them for scrap.


Myth #3. Auctions work only as the last option

Reported sales during commercial auctions, as well as other types of auctions, have set high records across industries. It is therefore a myth that participating in an auction is just a last resort to sell used goods and machinery. In fact, auctions are known for causing great competition that makes prices go higher after receiving multiple bids. The cost of equipment can increase, benefitting the seller, while still not being as expensive as new equipment, thus benefitting the buyer.  In fact, auctions are always the first choice for industrial or manufacturing businesses as they have complex, massive inventories that they need help with to catalog, ship, and organize for bidding.


So, if you own used equipment or machinery that could use a new home, save yourself the hard work and time by getting a reputable auctioneer such as Infinity Asset Solutions to do the appraisal and organize an auction. We’re just a phone call away!


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