Auction Options 101

There are numerous benefits to selling your farmland at auction. As a seller, there’s less frustration, they are contingency-free, you can control every aspect of the sale, and you save a lot of money! Since you set the terms for the sale ahead of time, you only have to negotiate one contract, one time. Additionally, auctions are exciting and create urgency and competition which can result in a higher selling price.

When you choose to sell your farmland at an auction, you have a few different types of auctions to choose from. Here at DreamDirt, we have four signature methods. We have Live In-Person Auctions, Timed Online Auctions, Live Auctions with Online Bidding, and Webcast Auctions. We have found that there is an ideal auction method for different types of properties. Additionally, multiple types of auctions can be utilized to benefit the seller.

Live In-Person Auctions

Live In-Person sales are pretty self-explanatory. With live auctions, bidders attend the auction in a predetermined location at a predetermined time. To place a bid, bidders will hold up their hand or a card for the auctioneer’s ring to acknowledge as the auctioneer cries the sale. Buyers will compete for assets until a bidder places a bid and nobody else bids. At the end of the auction, the winning bidder will sign a purchase agreement with the seller, and place an earnest deposit with the real estate brokerage’s trust account.

Timed Online Auctions

Also known as Internet Auctions, Timed Online Auctions follow the same structure as live auctions except for the fact that all the bidding happens online. This type of auction uses ascending bidding against a descending countdown, which will control the closing of the sale. With online auctions, there is no official starting time, only a closing time. This means that auctions can accept bids for 30-45 days. DreamDirt created BidCapture, a software designed exclusively for online land auctions. This software allows us to control every aspect of the land selling process in the best interest of our seller.

Live Auctions With Online Bidding

This is a “combination” auction. You get the best of both worlds with all the perks of both a Live In-Person Auction and a Timed Online Auction. A live auction is still conducted, but potential buyers have the option to bid from home, online. As the auctioneer cries the bid, our Online Auction Coordinator simultaneously updates the bid site for online bidders. Additionally, the auctioneer will update the live crowd if someone places a bid online. In the end, the item or land is sold to the highest bidder, whether they are in-person or online. We have found that this type of auction increases bidder participation since it allows for maximum exposure of their assets.

Webcast Auctions

This is a live outcry auction that uses the internet to take bids. Both the auctioneer and the bidders are remote, but the auction occurs over a Webcast platform. Bidders follow along with the live stream and place their bids online. Once someone bids and nobody bids against them, the auction will end and the item or land will go to the highest bidder.

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!

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