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Auction Strategies

Maximizing Your Return

Knowing whether an auction sale is right for your property depends on your goals for selling, features of the land itself and current activity in the local and national agricultural real estate market. Selecting the right auction company can also make the difference for a successful sale, so be sure to ask yourself the following questions:

  • Do you have time for a lengthy negotiation process or prefer a more immediate sale?

  • Is there any risk of setting the list price too high or too low?

  • Do you need to control more terms of sale than a brokered deal will allow?

  • Is your farmland in a financially distressed area that might diminish the returns from an auction?

farmland auction multi-parcel sale Loranda Group ag real estate auction

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.

  • Clearly define fees that reflect the capabilities of the company? The auction company should maximize the net dollars for your land and working with experienced market professionals can sometimes save you thousands in proceeds.

  • Promote the auction among qualified potential buyers locally, regionally, and nationally?

  • Provide you in advance with a detailed written marketing plan for your property, complete with specific costs, schedules, and recommendations?

  • Market to outside investors or institutions that may be aggressive buyers?

  • Have experience in auctioning similar properties?

  • 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? Few auctioneers offer true multi-parcel services. Sale price will be maximized only if bidders are allowed to bid on any tract or combination of tracts, and if bids on the tracts, combinations, and the whole can compete throughout the auction.

Read more about our farmland auction expertise, or contact The Loranda Group for more help in determining whether an auction is right for your farmland sale.