What is Liquidation Auctions?
Liquidation auctions refer to the selling of assets by a company; the assets can be office furniture, unsold inventory or any valuables that the company owns. Liquidation auctions can be voluntary or an involuntary event by a business. The business can have an involuntary auction, because of legal judgment or due to bankruptcy. Just like any other auctions, bidders have an opportunity of snapping-up products at deep discounts.
When it comes to liquidation auctions, companies sell their goods to raise funds for its creditors. However, there are cases where different kinds of auctions are referred to by the same name. For instance, the term liquidation relates to surplus or government auctions. Liquidation auctions is a term used to apply in different auctions as it “means everything must go."
If a business is offering a closeout sale to close down the shop, liquidation auctions are the way to go. An external auction house manages auctions whether it’s a voluntary or involuntary auction.
Products sold in liquidation auctions
Generally speaking, every product that a company owns and is valuable is sold off at the liquidation auctions. The items include; supplies, company’s office furniture, assets that the company has and unsold inventory. Separate auctioning is for items that are of high value such as antiques or artwork.
Proceeds from the auction go to the creditors first; any available left-over funds is shared out among the shareholders. Most people ask whether they can get good deals at liquidation auctions. The auctions provide buyers with good deals on different types of products, ranging from household items to big ticket items to electronics and rare antiques.
Most liquidation auctions allow an inspection period to the bidders, for them to determine good buys. However, when the goods trade-off no returns is allowed; most individuals view liquidation auctions as a business opportunity. This is because; by buying items at low prices, the bidders can resell the items at a profit. Sites like eBay among other online market places have an increasing trend for growing their business by purchasing products from auctions.
For auctions, the attendees have control on the price of items; every single product is negotiable from the start to the end. The bidders are the one determining the cost of commodities; therefore good deals are common.
Risks in liquidation auctions
The items sold off the way they are, goods once sold cannot be returned. The auction service shoulders no liability on any of the products sold. Therefore individuals are required to bid carefully and ensure to inspect the products if possible.
Another risk in liquidation auctions, purchases are too paid for at the end of the bidding process in cash or through credit cards. Learning auction service requirement before attending one is vital as some auctions may need to hold to your credit card or any other form of upfront payment. This is advantageous to the auction house as it encourages serious bidders.
Liquidation auctions offer excellent deals; however, bidders need to be careful not to get caught in artificially driven up prices. In case an organization of public interest goes to bankruptcy, bidders can regard its goods as souvenirs leading to the products selling off more than its worth. Liquidation auctions require notice and are a public record; therefore, auction houses advertise than in prominent newspapers as to when it will take place.
Bidders can also visit auction houses websites to get mailing lists. At Prime Auctions, you can also access liquidation sales of items, don’t be left behind.