Selling a small asset, especially one that was specifically purchased as an investment piece, is an important and consequential decision requiring considerable forethought and attention. We have compiled a list of the pros and cons of selling a small asset to support you with weighing up the decision and, ultimately, reaching a verdict.
Pros
Immediate Cash Flow
If you are in immediate need of cash, perhaps to pay for an emergency, pay off debt, or fund a new opportunity, making the decision to sell your watch or luxury handbag can give you quick access to cash, enabling you to fulfil your specific requirements. However, it’s important to consider whether this short term financial relief outweighs the long term value of the item, especially if it holds sentimental value or could continue to appreciate over time. If you decide to go ahead with the sale, be sure to research the market value of the asset before the sale to ensure you get the best possible price.
Reduced Maintenance Costs
Some assets, such as electrical goods and other equipment, will have ongoing maintenance costs associated with their upkeep. The cost of these maintenance costs can be considerable, meaning selling your small asset will free up, over time, all of the money that you have been spending on maintenance.
Avoids Depreciation
Some small assets will depreciate in value over time. For example, the coveted tablet you bought brand new a few years ago will become outdated with the passage of time and no longer be worth as much compared to newer releases, or simply newer versions of your specific model that are in a better condition. In these cases, selling your small asset now will help to maximise the amount you can receive for it, as the longer you wait, the more it will depreciate.
Cons
Potential Regret
If the proper planning and care is not taken when selling a small asset, you may find a need for the asset later down the line, or it may appreciate in value once you have already parted ways in the item for a lower price. This is colloquially known as seller’s remorse.
Alternatively, you may not regret your decision to sell the item, but the way in which you went about the sale may become a point of regret instead. In particular, online sales and auctions are both a minefield in their own ways, and many people unfortunately turn out to regret selling in these ways. Be sure to do your research before the sale to ensure you have chosen the right option for you and your small asset.
Emotional Attachment
It is only natural for us to form an emotional attachment to our small assets. However, ultimately, when assets are purchased as an investment, there will always come a time to sell that asset on. Whilst it’s completely natural to feel emotional about parting with an item you’ve formed a connection to, these feelings can hold you back from selling, ultimately costing you a lot of money in lost profits.
Low Resale Value
Outdated items, or items that are in poor condition, may sell for less than you expected. This can be particularly disheartening and could cause stress if you were depending on getting a certain amount of money out of the sale. To avoid this possibility, always take good care of your items, get them cleaned and, if necessary, repaired before selling, and always do your research to find reputable small asset dealers or asset auctioneers in your area to sell through.