Why choose Hoff Online Auctions?
An auction is the most pure form of a free market. The seller offers an item to
an interested group of buyers. They decide the true value of that item by
bidding against each other until only one buyer is left. This way the true
market value is attained. The item is not offered for sale at too high of a
price without any interested buyers; nor, is it sold too low and loses potential
profit. The auctioneer not only acts
as the intermediary between buyer and seller, but in today's environment is also
responsible for attracting
those interested buyers. Attracting interested buyers is the key to a successful
auction, and in today's fast paced, always changing, global economy it isn't
always easy. For this reason it is crucial to choose an auction company that has
experience with the equipment that is auctioned.
Hoff Online Auctions only auctions Industrial and Commercial machinery.
That is the market where we can best serve our clients. Our experience in used
machinery appraisal and sales is an invaluable tool in holding successful
auctions. We know the market values of machinery, the appropriate audiences and
the least expensive ways to reach them. This helps eliminate unwanted surprises
and insures a positive outcome for everyone.
Auctions happen for a wide variety of reasons; each situation is unique. That is
why we provide a variety of auction services and formats. This flexibility along
with our experience allows us to construct an auction agreement that will most
closely meet the needs of the seller and maximize the value of their assets.
Types of Auctions
There are three main types of auctions. The main difference is in the
auction company's compensation.
The first is a Commission Auction. In a commission auction the seller
receives the most money. The auction company is paid from a buyer's premium
(usually 15%) collected above the selling price, plus a predetermined amount for
expenses related to the auction. The seller receives all funds less sale
expenses. This is the oldest, truest method of auctioning.
The second type is a Split Auction. In this method, the auction company
guarantees the seller a predetermined amount of money. If the auction brings
less than that amount the auction company has to pay the seller, and if it
brings more, the seller and auction company split the overage. In this type of
auction, the auction company still collects a buyer's premium and expenses, plus
any overages. This is a safe way of guaranteeing the seller a predetermined
amount of money.
The third type is the Guaranteed Auction. In this type of auction, the
auction company reviews the value of the seller's assets and simply purchases
them at an agreed amount. The auction company then conducts an auction sale of
these assets. This type of sale results in the least amount of proceeds to the
seller. A substantial deposit is paid upon the signing of the contact and
the balance due is paid prior to the auction sale.