Prince’s guitar is set to go on auction on June 24. The opening bid is priced at $30,000. Considering the legacy Prince left behind, and the number of people who would want to have an item that belonged to the legend in their possession, the auction is expected to be a success. Who knows how much the winning bid would be?
Determining the Starting Price
Auction companies can only predict how high the bid could go. It depends on several factors, really. If there’s someone in the crowd who has the means to outbid everyone else, it could be an interesting auction. The opposite can also happen if the property simply doesn’t interest anyone.
Those auctioning trucks and salvage equipment will have to valuate the item on auction to have an idea of how much it could potentially sell for. Publishing the starting price is a wise move, especially for property auctions, to give participants the opportunity to gather their funds and prepare.
According to an expert from Pickles Auctions , the help of valuation service companies come in handy. As the market shifts, prices fluctuate. There’s also the consideration of the item’s usefulness and novelty. Prince’s guitar could fetch a handsome price, but an unknown person’s guitar, even if it is the same model, might not do so well unless collectors are in the crowd.
The Appeal of Auctions
In theory, anything can be auctioned. But why is this a popular means of buying or selling items? There’s a huge number of stores in Australia, and there’s no shortage of products for sale online. These offer fixed prices.
Still, people flock to auctions to get their next car, bed or even a house in Australia's price locations. Even billionaires auction their properties. What’s the deal?
You have the rare finds to thank for that. Any unusual item, or the feeling that one is getting more than his money's worth, is enough to close auction deals.
Some people have something in mind when they go to an auction, whilst others are in it for the surprise. And for many, they don’t go home disappointed.