Why Are Goods Sold At Auction ?

There are several reasons why goods may be sold at auction and it is important to know why the goods are being sold and where they came from. This information can be found by consulting with the auctioneers before the sale or it may be stated in the catalogue of lots relating to that auction sale.

One of the following may apply:

• Sellers decided upon the Auction Method in order to sell their item or properties for a number of reasons. One of their reasons might be to defray the enormous amount of holding costs to maintain the properties (i.e., real estate taxes, insurance, lost opportunities, etc.).
• Another reason is because the client needs to know when their property will sell. Sellers enjoy setting the date on which their property will sell. Most properties are not foreclosures, nor are the owners in bankruptcy, but instead highly motivated sellers looking to take advantage of the benefits of an auction sale. The buyer will also greatly benefit from their decision.
• The goods are being sold to raise cash to pay of debtors if the previous owner has gone into liquidation, receivership or bankruptcy.
• The goods are being entered in the hope of a dealer making a profit from their sale.
• The goods are being sold by the owner to create space for new stock.
• The goods are surplus to the owner’s requirements due to new stock being acquired.
• The goods have been part of a leasing agreement and the term of lease has ended and the goods are not required by the leasing company who are now the legal owners.
• The goods will not sell any other way due to poor demand or over supply.
• The goods may be part of an illegal consignment and have been confiscated by an official department who now wish to dispose of them.
• The goods may have been stolen and the previous owner cannot be traced by the appropriate authorities.
• The goods may be government department or armed forces surplus stock due to being out of date or over stocked.

What Types of Goods Are Sold At Auction?
Just about anything can be sold at auction. Here are some examples:

• Antiques - Furniture - Jewelry - Antiquities - Artifacts - Clocks & Watches
• Fine art - Paintings - Sculptures
• Collectibles - Stamps - Coins - Books - Postcards - Medals - Print - China & Glassware
• Leisure - Caravan & Camping - Marine - Aviation - Sports Goods
• Property - Houses - Flats - Land - Commercial - Warehouses - Workshops - Studios
• Household - Furniture - Appliances - Electrical Goods - Garden Equipment
• Consumables - Foodstuffs - Wines - Spirits - Beers
• Office - Equipment - Furniture - Consumables - Telecommunication Equipment
• Computer - Home - Business - Parts & Peripherals - Peripheries
• Transport - Cars - Vans & Commercials - Trucks - Motorcycles - Vintage - Motor Parts
• Industrial plant & machinery - Contractors - Engineering - Printing, Chemical - Stock
• Agricultural - Buildings - Machinery & Tools - Livestock - Vehicles
• Government - Armed Forces - Department Stock - Seized & Confiscated Goods