Turn “problem assets” into proven market value—fast.

“Depressed asset” is one of those phrases that sounds like it belongs in a textbook…until it becomes personal.

It might be a piece of equipment that’s been sitting idle since the last production change. A commercial building with deferred maintenance that makes buyers nervous. A property that needs more work than most retail buyers want to tackle. Inventory that’s technically usable, but no longer fits your operation. Or assets tied to an estate, a transition, a downsizing, or a business closure where time matters as much as price.

In all of those situations, sellers often feel boxed in:

“If I list it at a normal price, it won’t move.”
“If I discount it, I’ll leave money on the table.”
“If I wait, I’m paying storage, insurance, taxes, and ongoing headaches.”

That’s exactly where an auction can change the outcome—because auctions are built to solve uncertainty through competition and price discovery. (Price discovery is the process where buyers and sellers meet the market and arrive at an actual traded price—distinct from a theoretical valuation model.)

At Krueckeberg Auction & Realty (KJ Auctions), our job is to take an asset that feels “stuck” and create a selling environment where qualified buyers can compete with clarity and confidence.

As Josh Krueckeberg, owner, auctioneer & real estate broker explains: “Depressed doesn’t mean worthless. It usually means the asset needs the right buyer and the right process—and an auction is designed to bring both together.”

What qualifies as a “depressed asset”?

Depressed assets are typically undervalued because of condition, complexity, uncertainty, or perceived risk. Common examples include:

Real estate

Deferred maintenance, outdated systems, or functional obsolescence
Fire/water damage (even after remediation)
Vacancy, code concerns, or complicated property histories
Commercial or specialty properties that don’t fit a retail buyer profile

Business, industrial, and fleet assets

Idle or surplus machinery, lines, and shop equipment
Vehicles and rolling stock with heavy use
“As-is” inventory lots
Assets from closures, consolidations, or reorganizations

In plain terms: these are assets that don’t perform well in a “simple listing, wait for the right buyer” model.

WHY AUCTIONS ARE A STRONG FIT FOR DEPRESSED ASSETS

1) Auctions create a deadline—and deadlines create action

Unlike open-ended sales processes, auctions are built around a defined marketing period and sale date. That structure can reduce the drift that happens when a listing sits and buyers wait for the next price cut. The National Auctioneers Association (NAA) highlights “speed and certainty” and a set sale date as a core advantage of the auction method.

Trevor Gray, vice president, auctioneer & real estate broker, puts it this way: “When a seller needs a plan—not just a listing—an auction creates a real schedule. You know the marketing window, you know the close date, and you can plan around it.”

2) Auctions reduce the carrying-cost bleed

Depressed assets often cost money just by existing—especially vacant property and idle equipment.

In real estate, “carrying (holding) costs” commonly include items such as taxes, insurance, utilities, HOA fees, mortgage payments, and sometimes property management. When an asset is dragging value every month, the “best price someday” can become worse than a strong price on a predictable timeline.

3) Auctions are purpose-built for price discovery

One reason auctions are widely used in many markets is that they’re effective mechanisms for price discovery under competition. This matters most when pricing is uncertain—exactly the scenario depressed assets create.

Here’s the strategic takeaway: you don’t need a perfect asking price; you need qualified bidders and a transparent process.

Economists have long emphasized that bringing in more genuine bidders can be more valuable than bargaining power in a thinly competitive negotiation.

4) Auctions expand the buyer pool—often beyond your geography

Depressed assets frequently have non-retail buyers: investors, contractors, specialty operators, manufacturers, and out-of-area bidders who know how to extract value from complexity. Auction marketing is designed to reach those buyers with clear terms and a straightforward path to purchase. The NAA frames this concept of “maximum exposure” and broad market reach as a feature of auction marketing.

5) Auctions can be structured to maximize value—distress markets use them for a reason

If you want a proof point that competitive auctions are designed to protect value under pressure, look at how distressed assets are sold in bankruptcy contexts.

In Section 363 sales, competitive bidding and auction procedures are commonly used specifically to attract purchasers, generate competition, and maximize value for the estate. While your situation may not be bankruptcy-related, the logic is the same: a well-run competitive process can outperform uncertain, private, one-buyer-at-a-time negotiations.

“MAXIMUM RETURN” STARTS BEFORE AUCTION DAY

A strong auction is not “posted.” It’s prepared.

Professional presentation builds confidence (and confident buyers bid higher)

The goal isn’t to hide flaws—it’s to reduce uncertainty. Better information produces better participation.

KJ’s real estate auction services explicitly emphasize a proactive, start-to-finish approach “from photography to advertising, to the sale of your property.” That matters because depressed assets don’t sell on hope; they sell on clarity and execution.

Stacey Fields, real estate broker, explains the mindset: “Buyers can handle almost anything if they understand it. Our job is to make the asset, the terms, and the timeline clear—so bidders feel confident competing.”

The right format matters: absolute vs. reserve, and smart lotting

For many depressed assets, participation is the lever. Auction terms—whether absolute (no minimum) or reserve (minimum)—can impact bidder confidence and entry.

For business and equipment assets, lotting strategy can be just as important:

Grouping complementary assets to create “ready-to-operate” packages
Breaking out high-demand items to increase bidder count
Using buyer-choice lots for inventory where appropriate

The guiding principle is simple: make it easy for the right buyers to say “yes.”

WHY KJ AUCTIONS IS BUILT FOR COMPLEX ASSET SALES

When sellers come to KJ, they’re often looking for a partner who can handle the operational weight: documentation, cataloging, photography, marketing, bidder support, and coordination.

KJ’s own business liquidation guidance emphasizes that a professional auction firm can carry that workload—handling the complexity so owners and families can focus on what comes next.

And because KJ maintains a full team across auctions and real estate, sellers can match the method to the situation—rather than forcing every asset into the same sales channel.

BOTTOM LINE: DEPRESSED ASSETS DON’T NEED A DISCOUNT—THEY NEED A MARKET

“Depressed” usually means misunderstood, underexposed, or too complex for a conventional sales approach.

An auction doesn’t create value out of thin air. It does something more practical:

It creates urgency through a clear timeline.
It reduces uncertainty by publishing terms and making the process transparent.
It unlocks price discovery through competition—especially valuable when pricing is hard to pin down.

As Josh Krueckeberg summarizes KJ’s approach: “Our job is to move sellers from uncertainty to a documented result. When the asset is complex, the auction method is often the most direct path to a true market outcome.”

Unlocking Value: How to Sell Depressed Assets at Auction for Maximum Return