Questions to consider when selecting an auction company:
- Does the auction company specialize in real estate? The expertise required to sell farm real estate is very different from that required to sell a prize steer or an antique table at auction.
- Does the auction company clearly define fees, and do those fees reflect the capabilities and experience of the company? If you remember the old adage, “you get what you pay for,” then the lowest price may not be the best. The goal of the auction company should be to maximize the net dollars for your land. Saving a few hundred in fees could cost you thousands in proceeds.
- Does the company know how to promote the auction among qualified potential buyers locally, regionally, and nationally?
- Will the auction company provide you in advance with a detailed written marketing plan for your property, complete with specific costs, schedules, and recommendations?
- Will the firm market the property to outside investors or institutions that may be aggressive buyers?
- Is the firm experienced in auctioning similar properties?
- Does the firm have expertise in the multi-parcel method of sale, where properties are divided into smaller tracts to increase the buyer base and enhance the sale price? Remember, few auctioneers offer true multi-parcel services. Sale price will be maximized only if bidders are allowed the flexibility to bid on any tract or combination of tracts they choose, and if bids on the tracts, combinations, and the whole can compete throughout the auction.
If you can't answer "yes" to all these questions, contact Loranda Group and we'll help you analyze the potential of your property.