Went to first ranch auction - surprised

   #1  

dalroo

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I'm not sure if this is the proper section, but kind of related to pricing, so will start here.

I am somewhat new to this ownership thing, and yesterday attended my first ranch auction. There were several items I was interested in, for the right price. The process was entertaining, and I learned a lot, but many of the items seemed to be going at premium prices. There were a few trailers, a couple of tractors, and many others things of interest, but from my research beforehand, almost everything that I attended for went for near retail values. In advance, I did some research on one of the tractors, and felt the value probably to be 18 or 19,000, and maybe less if motivated seller and a strong negotiator buying. The one at this place, I think because I had quit paying strict attention, went for roughly 21k, but also required a 10% premium, so 23 and change. And that was just one example of many.

There were also a number of guns - rifles and shotguns - that seemed to be going for very nearly retail prices. Guns I kind of get as the market is pretty volatile right now, but still kind of surprised on a lot of these that sold.

Not trying to knock what anyone purchased or the prices they paid, maybe they were needed items and the buyers were very motivated, and I was maybe there with the wrong motive - looking for deals on items I could flip, but I didn't see any real "deals". For those of you who go to these regularly, is this the norm? Or do you just have to go to many, and be at the right price at the right time?

Congratulations to the auctioneers and seller - they achieved their goals of getting the most value out of the items auctioned, ............and maybe I'm just cheap.
 
   #2  

Fallon

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I've watched people pay $175 for beat up stock panels when people are in the back looking at the catalog for Stockyards Ranch Supply that has them new for $150. Same for tractor implements. Seen 3pt PHDs & an auger go for $800.

When going to an auction & bidding on something always know the value new, used & it's value to you. Never bid above any of those. Figure out those values before you start bidding & stick to your guns. To many people get caught up & try to beat the other guy. They don't realize they aren't actually "winning" they are loosing.

Sometimes you can get a great deal, sometimes not.
 
   #5  

lamanated

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Just look at the back row of the auction,, if you see eyes roll as stuff gets bid on,,STOP Bidding,, drink the coffee eat the donuts and sit back there with us and enjoy someone else pay through the nose.. Seen it time and time again...
 
   #6  

mapper

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I stopped going to auctions when all I saw was well used items going for brand new prices. I was also at an auction where the auctioneer had members of his company bidding stuff up, he then got irritated with me because I quit bidding on a lot of stuff when it exceeded what I was willing to pay.
 
   #7  

jeff9366

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Auctions are the purest method for balancing supply and demand, and therefore price, of used goods.
 
   #8  

George2615

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I stopped going to auctions when all I saw was well used items going for brand new prices. I was also at an auction where the auctioneer had members of his company bidding stuff up, he then got irritated with me because I quit bidding on a lot of stuff when it exceeded what I was willing to pay.

I saw the same thing and stopped going to auctions. I went to several when I was looking for a tractor, trailer, attachments or any other items I was interested in and found the bidding often went over what I could buy new for and these used items needed repairs. The auctioneer did his job getting the sellers the most money for their items. I just couldn't believe people were paying more for used than new. Apparently they didn't research ahead of time. I also agree the auctioneer have their own people bid on stuff because I was approached twice by the auctioneer's people after the auction telling me the buyers offer fell through and they would accept my offer. I told them no and saw the same items for sale at the next auction.
 
   #9  

ultrarunner

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I went to one and bid on a pallet of assorted tools... old large pipe wrenches and similar.

Wanted to take it with me but was told as it was late in the day I would need to pick up early AM... the fork lift was not available to simply place the two pallets in the bed...

Well I was there when the gate opened and my lot had been pilfered... enough value was still there... just not what I had bought... didn't have picture so it was my word alone.

That was my first and last auction.
 
  
  • Thread Starter
#10  
OP
dalroo

dalroo

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Brookesmith, TX
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Auctions are the purest method for balancing supply and demand, and therefore price, of used goods.

Yes, I do agree with that - it is like anything I guess, the value is what someone agrees to pay for it. As I said in OP, this was my first big ranch auction, and I think my expectations were different than reality. No problem, I learned a lot, and as mentioned by Fallon, I had done some research beforehand, and knew that if the things I was interested in went over $X, I was out.

I wasn't interested in it for my place, but there was a Kubota BX2660 which went for about what I expected. It was low hours, had a loader, and looked fairly well maintained, and it went for about what you might see from online sellers. It was probably the only large item auctioned that I actually was close on my estimate.

Maybe I'm not cheap, but just a lousy forecaster!
 
 
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