Advantages of Auctions

  • The auction process is the most positive and effective method of realizing the highest price the market is prepared to pay for a particular vessel at a given time.

  • The owner of the boat displays to the public that he or she has a genuine intention to sell and is not just testing the market.

  • Extensive advertising is required whether a sale is by private treaty, Tender or by Auction. It is preferable that such advertising should lead to a positive point. This being the auction day, when interested parties must attend and bid to have the opportunity of purchasing.

  • The seller and the auctioneer are in a dominant and controlling position, and the seller sets the terms on which he wishes to sell at auction. This avoids the situation of purchasers making offers subject to undesirable conditions.

  • The seller is not required to decide on a reserve price until the day of the auction or for that matter until the final bid has been received.

  • The boat is sold "as is" and in its current condition.

  • A major feature of auction is that a price is not advertised and the onus is placed on the bidders to out bid the other parties and communicate their offers to the auctioneer by bidding against each other forcing up the price.

  • Competition between purchasers at auction may result in an inflated price being obtained. Only through the auction process can the competition between purchasers be fully capitalized upon.

  • On the day of the auction, the successful purchaser is required to pay a deposit and execute an unconditional contract of sale.

  • Potential purchasers of any type of vessel are more inclined to investigate the purchase of a boat when they believe it is genuinely For Sale as they must invest considerable time, effort and money investigating the suitability of the boat. Most potential boat buyers are more inclined to do this if the boat is offered for sale by Public Auction.