Search All Listings
Search by Real Estate Listing #
Search Site
Search All Listings
Search by Real Estate Listing #
Search Site
Talk to Us
Call Us Facebook Twitter LinkedIn YouTube Instagram
Email A Friend
Talk to Us
Call Us Facebook Twitter LinkedIn YouTube Instagram
Email A Friend
Land Auctions Deliver Results
You are here:   Blog  »  Agricultural Real Estate  »  Land Auctions Deliver Results

September 24, 2018 

 

When a landowner is considering how to sell their agricultural land, they have several options. One popular and effective method of selling land is through a public auction. Working on behalf of the seller, the auctioneer and broker set the terms, dates, and particulars of the auction sale ahead of time that are well publicized to the public. The seller maintains the most control with an auction sale when compared to a private treaty listing in which the buyer or buyers will have the opportunity to negotiate most terms and aspects of the purchase. The auction also sets specific dates for the sale as well as the closing of the transaction which is normally advantageous for the seller.

The most important reason for a seller to use an auction is that many times, the competitive and open bidding of an auction brings a higher price than expected for the land. One example of an auction bringing a better price happened recently at a Farmers National Company auction in Iowa. An average or below farm sold at auction for 50% above the price that everyone thought it would go for. Effective marketing of the property and knowing who the buyers could be helped get the extremely good price for the farm. Another example comes from a Farmers National appraiser who, as a matter of normal practice, researches the details of land sales in their service area. They note that auction sales of similar types and quality of land normally sell for $500/acre more than private treaty listed sales.

Public land auctions have many advantages, both in the price received for the land and in the control of the process. But, there are times when the circumstances of the sale or the influence of the local area would indicate to use a different method to sell land. A good land broker will know the area, the potential buyers, and will be able to give a sound recommendation on which sale method will work best for the seller.
 

  

Randy Dickhut 

Senior Vice President - Real Estate Operations  

All News  Category: Agricultural Real Estate News
Blog Home  Blog Home
Back to Top
Print Show Printable Page
Search Listings and Website
Search All Listings
Search by Real Estate Listing #
Search Site