Buying or Selling Equipment at Auction? Our Top Tips to Successful Equipment Auctions
For many Texans, your land is as profitable as your equipment allows you to be. So whether you’re selling your land and its machines or starting out farming, you can use equipment auctions.
Auctions are a great way to buy and sell equipment at the best price– but there are things to consider that aren’t part of a typical purchase.
Here are some of our top tips for successfully navigating an equipment auction to get your land up and running at top dollar.
Know What You Want and What it Should Cost
One of the hardest parts about buying equipment at auction is having the price change quickly. You won’t get long to review the equipment specs either, and when everything is happening fast, it’s easy to overbid or get something that doesn’t fit your needs.
So before participating in any auction, ensure you know exactly what you need to buy. Have your specs in mind or written down so you can stay focused.
Then, ensure you know what an acceptable price range is for the equipment, including a range based on the age of the machine.
Plan for “Hidden” Costs
It’s not intended to be sneaky, but auctions often come with additional costs after your final bid. Sellers may have their own premiums and transaction fees. You should expect to transport the machinery yourself back to your land, which may require additional labor or vehicles.
Check the rules of your auction before participating. You’ll learn what buyers are allowed to add to a transaction. Also, ensure you have a clear plan for transport before purchasing any equipment.
Pay Safely
The price for heavy machinery is typically thousands of dollars, so both the buyer and seller have an incentive to ensure the correct payment processes.
Buyers need to check how the seller of their equipment prefers payments. They may ask for a wire transfer or allow checks or cash payments. Many auctions also provide a payment processor to facilitate payments directly with the auction host.
Sellers should have clear directions for payment options, including any bank information required to complete wire transfers.
What About Online Auctions?
While Texas has long hosted traditional in-person auctions, the pandemic created a massive shift to online auctions. And digital auctions have made significant improvements for both buyers and sellers!
Interested buyers have greater access to a broader range of equipment, allowing them to get specialty or high-demand machines much easier.
And with an increased pool of buyers, sellers are averaging higher prices for their equipment.
Need Equipment for Your New Land?
If you need equipment for your land or are looking to auction your equipment, email us today to get started! We've partnered with AuctionTime, a local, authentic Texas machinery auction host. You'll find trustworthy sellers, a wide variety of equipment, and a smooth payment process, so find the nearest auction location today!