Selling equipment privately – risk and liability included

When it’s time to sell equipment, private sale is often the first, or “go to” choice for many people. If all goes well, the selling process can be quick and painless, and the seller gets the price they want. Unfortunately, that scenario is usually the exception, not the rule. With so many moving parts in the sales process – from listing your equipment to dealing with potential buyers – it can easily get derailed. But regardless of whether the selling experience is a smooth ride or a bumpy road, the real risks remain. Here are some to keep in mind:

Time risk – the clock is ticking

Often sellers are in a time crunch. It could be self-imposed or external – there are jobs coming up, a location move, money is needed elsewhere in your business, or the bank is waiting on payments. Either way, sellers can find themselves facing a ticking clock and risk running it down without selling, as there’s no guarantee of a sale date when selling privately. You’re at the mercy of the markets and buyers, and if money is still owed on your machines, the bank’s deadlines for loan or financing repayments.

Personal liability – the blame game

One risk of private sale that’s often overlooked revolves around liability. If your equipment is on your property, and in the process of inspecting and testing it out a potential buyer injures themselves, someone else or someone else’s property, you could be held liable. In the best case scenario, most businesses would have insurance to cover something like that, but regardless, dealing with an insurance company is likely a headache and hassle you don’t need. And in the worst case, someone could decide to pursue an injury or property claim against you through legal channels.

One way to avoid this risk is to sell through a company who offers storage on their property. Ritchie Bros. Auctioneers equipment yards are secure and staffed, and there’s no charge for pre-sale storage. The other route is to make sure there’s enough info, photos and/or video online so potential buyers don’t have to inspect your machine in person.

Financial risk – deal collapses and bouncing checks

The biggest risk in selling privately, of course, is the financial one – specifically the risk of not getting paid. This can simply take the form of a buyer backing out at the last moment or disappearing altogether before the deal is closed. The more serious risk is the actual transaction going awry, and after the equipment’s changed hands, the money doesn’t. And with heavy equipment worth significant amounts of money, it’s doubtful you’ll be able to ask for a cash payment to avoid bouncing cheques or fraud of some sort.

Marketplace-E, the better alternative to selling privately

Compared to private listing sites, Marketplace-E offers a no-hassle selling experience with a combination of expert price guidance, comprehensive marketing, secure transactions, and professional online listing management. Here’s how it can help you:

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Faster

Marketplace-E sellers get optimized Price Guidance that helps you sell faster using industry-leading data.

Easier

You don’t have to do any marketing. Sit back and leave the selling to the experts, focused on finding buyers and getting you the best results. They also handle the invoicing, lien searches, payout coordination, sales documentation, escrow services and taxation. 

Safer

Your transactions are secure and information protected online for a de-risked selling experience. The transactions and payments are handled for you, so you can be sure you’ll get your money.

Plus, Marketplace-E online inspection reports – backed by IronClad Assurance – deliver a faster sale by providing buyer confidence. IronClad Inspection reports offer:

• Standardized listings with key info buyers count on 
• No in-person buyer inspections required
• Protection from future liabilities
• Guaranteed by Ritchie Bros – not by you – and we handle any disputes  

Find out today how you can get a faster, safer, and easier selling experience.

See also

A farmer’s checklist for preparing equipment for resale