THERE ARE numerous advantages for doing transaction through auction process. Auction can be termed as a publicly held sale at which property or goods are sold to the highest bidder. Selling and buying at auction is a quick, simple and honorable method of selling goods. For centuries this mode of buying-selling has been in vogue. It has the added benefit of facilitating the best return in the shortest time.
Some of the chief benefits accruing both to buyer and seller doing transactions through auctioning process are listed below :
From seller's view point:
- Seller knows exactly when the merchandise will be sold (time-defined sale)
- Seller can provide input on the terms and conditions of the auction
- An auction removes the seller from the "price negotiation" process
- An auction provides an aggressive and accelerated marketing method that increases interest and provides higher profits though enough fair warning is always given before the drop of the hammer
- An auction creates a buying frenzy and stimulates competition among buyers
- Bids are influenced by the judgement of others - meaning that someone else generally wants that same items so drives the price even higher
- Buyers don't have a lot of time to procrastinate; if they do they may miss out on the item that they really wanted to purchase.
- At an auction one can feel confident that he is getting the right price
- Auctions are a quick, profitable and easy way to liquidate anything from personal property, real estate, commercial, industrial, manufacturing or agricultural items.
- Quick disposal reduces long-term storage and carrying costs, including taxes and maintenance
- Buyers come prepared to buy and they want the items being sold!!!
- Competitive bidding often exceeds the expected value and returns the highest net value on a seller's assets
From buyer's view point:
- Smart investments are made at fair market value through competitive bidding
- Buyer knows that the seller is fully committed to selling
- Buyers determine the final purchase price and use their own judgement
- Auctions provide more efficient means to purchase merhandise
- Buyers know they are competing in a level playing field and are on the same terms as all other buyers
- Public intelligence is the best guarantee that one is paying a fair price for the items being sold
The best thing to come out of an auction process is everything is done legally and openly and therefore there is enough transperency in the transactions involved. At times, we do come across public notices in leading newspapers put up by advocates on behalf of their clients notifying that their client had done a deal for buying a property and therefore no claim can be made by a third person in this regard. Such notices and costs involved can be eliminated through transactions done by auctioning process. People who are semi literate and illiterate and who are holding properties or valuable goods for sale can be well advised to sell through auctioning process because it has many advantages.
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