Auctioneer, Land Broker, Appraiser
Jason is an Auctioneer and Land Broker in northwest Iowa at Storm Lake and Mason City. Jason and his Iowa farmland team specialize in farmland sales primarily serving the heirs to family farms. Today's report details the current land market in Iowa for land being sold at auctions.
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5 Things To Consider When Selling Your Farm
Auction or Listing? Online Auction or Live Auction?
When choosing to sell your farm, there are a variety of options to consider when it comes to the method of how you sell it. You can sell land with either a listing or an auction. However, each farm can have different marketing strategies that work best for it. The best fit can depend on CSR, productivity, income ratio per acre, type of property, time frame for selling, and more. Typically, selling farmland at auction is pretty straightforward with less frustration and time commitment from the seller. However, they might not always be the best option for certain types of land such as hunting properties. As previously mentioned, there truly are several factors that can contribute to which method is right for you and your farm.
When it comes to types of auctions, we have four signature methods. We have Live In-Person Auctions, Live Auctions with Online Bidding, Timed Online Auctions, and Webcast Auctions. Similar to the idea that there is an ideal method of selling based on different types of properties, that same concept is true when it comes to choosing a type of auction. Each scenario is different, and sometimes multiple types of auctions can be utilized to benefit the seller. However, some of this confusion can be cleared with the help of a professional salesperson. They can be a very valuable resource when it comes to assessing your situation.
Presentation of Your Property
Think about the concept that “you never have a second chance to make a good first impression.” When marketing your land, potential buyers want to see your land at its best. Whether that means fixing fences, mowing or trimming overgrown areas, or just doing a general tidying up, you want to get your property “market-ready.” It can also be beneficial to try to increase the percentage of tillable acres on your land, as well. Doing those types of things can be advantageous for your marketing materials, as well. This way all of your photos, videos, and drone footage will be more alluring to potential buyers.
Dividing Your Property
Something else to consider when it comes to selling your land is the question, “do I sell the land as a whole or do I divvy it up into tracts?” Sometimes, separating your land into multiple tracts can result in a higher total selling price. It can allow more flexibility for the seller, as well. Smaller amounts of land can be more affordable for buyers and can save them time and risk, in the end.
If You Have a Tenant
We often see a lot of confusion when it comes to this. You can, in fact, sell your farm with a tenant. The only difference is that the buyer will be your tenant’s new landlord. Most states have laws regarding farm tenancy that address giving a tenant a notice that they will no longer be farming the farm. Most farm tenancy laws have a deadline of September 1st, of that calendar year. Giving your notice before or after this date can determine whether or not that tenant will be farming the land for that year’s crop season. However, sometimes the tenant is willing to negotiate the timeline for terminating a tenancy. Each scenario is different, so it all just depends on the factors and parties involved.
Choosing an Auctioneer
There are a few different variables to think about when it comes to choosing an auctioneer. You want to choose someone who is going to give you the “biggest bang for your buck,” but also someone who is going to make decisions with your best interest in mind. You’ll want to look at things like their personality, network, marketing platform, competence level, commission levels, as well as analyze their claims and the total value of their services. Unfortunately, auctioneering is an unregulated industry, so you want to make sure to do your research before deciding to do business with someone. You don’t want to accidentally expose yourself to unnecessary danger by choosing an unreliable auctioneer. It can be highly beneficial to hire a professional that is a licensed real estate broker since they will have the training, education, knowledge, and skills to create a successful plan for you.
If you are interested in learning more when it comes to selling your farm, we offer free phone and video consultations! Our team will give you a call to collect farm details before we complete our report. We will research your property and complete a free market analysis of the value of your land. We will then meet with you by video or phone conference to discuss your land’s value and what your selling options are! If you prefer to meet in person we can do that too! Find out what your land is worth today!
What's Your Farm Worth?
Click Here Our team will give you a call to collect farm details before we complete our report. We will research your property and complete a free market analysis of the value of your land. We will then meet with you by video or phone conference to discuss your land’s value and what your selling options are! If you prefer to meet in person we can do that too!