Considering an offer below reserve after the auction
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A below-reserve offer is worth considering when its likely net proceeds compare well with your remaining options. The original reserve matters as a decision already made, but it does not remove the need to assess new information after the auction.
First confirm the offer is real, what is included, any conditions and when it expires. Ask the auctioneer how acceptance must be authorised. A discussion about price is not a substitute for a clear written instruction.
Compare the future from today
Leave costs already incurred out of the choice unless they differ between the options. Include future costs that would change if you wait. Avoid comparing a firm offer today with an optimistic gross price from a possible later sale.
The following figures are invented solely to show the calculation. They are not fee quotations or estimates of equipment value.
| Item | Accept current offer | Attempt another sale |
|---|---|---|
| Gross proceeds assumed | £7,000 confirmed offer | £8,000 hypothetical outcome |
| Future selling charges | £700 assumed | £800 assumed |
| Extra holding and preparation | £0 assumed | £900 assumed |
| Net from this decision | £6,300 | £6,300 |
In this example, achieving £1,000 more at the next sale produces the same net amount after the assumed extra costs. If the later price were £7,000 instead, the net would be £5,300 using the same £800 and £900 assumptions. Actual charges may vary with price, so replace every figure with the applicable terms.
The table excludes VAT, tax and any cost shared equally by both choices. Deal with those separately where relevant. See how to compare offers on a consistent basis if two buyers include different collection or payment conditions.
Fill in the missing columns
Money is only half the worksheet. Add these four lines beneath your calculation:
- Certainty: what remains conditional in each offer or estimate?
- Time: what is the latest acceptable payment and collection date?
- Evidence: what new buyer interest or market evidence supports trying again?
- Fallback: what happens if the next attempt also fails?
Be specific about the evidence. 'It should make more' is a hope. A corrected description, restored viewing access or an identifiable interested buyer gives you something to discuss. None guarantees a sale.
The offer and valuation comparison helps test whether both figures use the same scope and assumptions. A valuation is not a promise of the next auction result. Review the reason for the original reserve and note what has changed since it was set.
Give a complete answer
If you accept, identify the lot, agreed amount, included items, conditions and person authorised to convey the instruction. If you decline, record the next route and deadline in the unsold-lot log. An unexplained refusal simply postpones the same conversation.
UK Auction Group can help compare a post-auction proposal with the practical alternatives. Ask for the expected net outcome and the assumptions behind another attempt, so you are deciding between two defined options.
Explore the auctions and private sales guides.
Sources
- UK Auction Group: asset disposal Checked
This guide gives general information. Equipment-specific, legal, tax and safety decisions may need a qualified adviser or competent specialist. The guides do not promise sale prices, fees or results.