Selling a small asset, particularly one bought as an investment, can feel like a big step. It’s not just about money: the timing, value, and whether it still fits your plans are just as important to consider. Whether you’re decluttering, cashing in, or simply changing direction, it’s worth pausing to weigh up the pros and cons of making a change like this. 

To help you along the way, we’ve put together a list of pros and cons to help you with coming to a decision. So, without further ado, read on for a bit of friendly guidance to help you determine what’s best for you.

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, will have ongoing maintenance costs associated with their continued upkeep. The expense involved in these maintenance costs can be considerable, meaning selling your personal asset could free up, over time, all of the money that you have been spending on maintenance thus far.

Avoids Depreciation 

Some small assets will depreciate in value over time. For example, the coveted sports accessory you bought brand new a few years ago may become outdated with the passage of time and no longer be worth as much compared to newer alternatives, or simply younger versions of your specific accessory that are in a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. 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 respective 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 asset.

Emotional Attachment

It is only natural for us to form an emotional attachment to our personal 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 regularly and, if necessary, repair the asset before selling. Always do your research to find reputable personal asset dealers or asset auctioneers in your area to sell through.