Buy or Sell Without Getting Ripped Off

At one time or another most farmers have responded to, or placed an advertisement for a piece of equipment “for sale by owner”. Selling a piece of equipment to another individual is often a good way to dispose of good equipment you no longer need. Many of these ads are found in local newspapers, shopper type magazines, and the Internet. Whether buying or selling you have a responsibility to yourself and other parties involved, to keep the transaction honest. Trust your instincts and buyer beware is a good rule of thumb to follow. If something smells fishy, it is usually a message to proceed carefully. Nothing can sour a sweet deal any faster than one of the parties committing a fraud, this can range from a small fib about the condition of the item, to the out-right commission of an illegal act, such as not owning the property you are selling. Know the values, educate yourself before you go shopping or take along a pricing guide, like the Hot Line Farm Equipment Guide, to help identify values on equipment. Ask the seller to provide the equipments documentation and proof of ownership, a legitimate seller should be happy to provide this information. Don’t be afraid to ask to see maintenance records, after all you are investing a good deal of money. Remain skeptical and use good judgment. The Internet has become a popular method of selling equipment, with that comes the unscrupulous, crooks disguising themselves as an individual making an honest transaction. Many of these sales originate from outside the United States, so they can remain less susceptible to U.S. legal action. So in short be wary of International transactions. Not all of these types of transactions are bad, but unless you are a professional import/exporter I suggest you avoid them altogether. A seller demanding cash only, can send up a red flag, however it may also mean he or she has been a victim in the past. I suggest you offer another form of traceable payment such as a certified or cashier check, or a letter of credit from your financial institution supporting the validity of your check. This will help to weed out the likelihood of a bad experience. It is also proof you have taken ownership, and of course you will need it at tax time. When selling a piece of equipment here are some selling tips to make your prospects comfortable and provide an all around good experience. 1. In your ad, provide prospects with a good accurate description. Cover key points that will set your equipment apart from like pieces, such as low hours, full maintenance records, always shedded, etc. 2. Post your asking price and terms, this will answer questions before the prospect calls. Be able to support your asking price with comparables in the area or a pricing guide. If your asking price is well below the average asking price, offer a brief explanation, for example “engine needs work” or “hail damage”. Information such as, will take another piece of specified equipment as partial payment provides the prospect with helpful information that can lead to a sale. Stating if the price is firm or negotiable will save time, for all involved, by pre setting implied boundaries for offers. 3. Make sure all statements you make about the equipment are factual, being careful not to sound deceptive. Bragging up a piece of equipment too much can turn off a buyer by leading them to think you may not be truthful. 4. Offer documentation and personal information pertinent to the sale, such as personal business references up front, and allow the buyer time to check them out. If you appear too eager to close the transaction, like offering a big discount for cash or buying today, you will most assuredly scare off a prospect. 5. When the buyer says yes, getting references is as important as providing them. Make sure the check will clear the bank. So take your time to assure this by using the information provided earlier in this article. If you are the least bit uncomfortable, ask the purchaser to accompany you to the bank to validate payment.