Farmland Auction Commission Rates

Nov 12, 2019 | About DreamDirt

Call, text or email to have a confidential conversation about commission fees.  Jason Smith Cell phone 515-537-6633

We sell all types of land via auction or private listing.  Our company and team are advanced land auctioneers.  We aren’t the typical “do anything for a buck auctioneers”. Land sales is our sole business and we are good at it.  We are licensed to sell real estate in Iowa, Missouri, Minnesota, Nebraska, South Dakota and North Dakota.  We offer our marketing services through real estate broker and partner auctioneers in Illinois, Wisconsin, Kansas, Oklahoma, Arkansas, Ohio and Indiana.  

With many years in the industry, we’ve received a wide array of questions from potential clients. We find that most of our clients’ initial question is, What do you charge for an auctioneer commission?” We realize the importance of this question when selecting an auctioneer for the sale of your farm. In this blog, you’ll learn about DreamDirt’s auctioneer commissions to sell a farm, farmland real estate and even farm equipment or machinery for you!

First, to be completely fair and avoid any confusion or ambiguity, DreamDirt charges commission only. No hidden fees, period! We do not charge closing fees, advertising fees, or per bid fees. Because of this, our auction commission is much more of a value to our customers. In fact, many times our farmland auctioneer commission is the most competitive in the market for these services. Additionally, DreamDirt is not a general auctioneer; rather, we are a specialized farm and land auction company. Thus, the resources you are getting from paying us commission allows us to take the measures necessary to maximize the value of your land.

Now, there certainly is no pressure to utilize this method, but when clients elect to use our real estate services, live auctions or online auction platform there are many benefits. We feel they not only are using an optimal environment for the most aggressive bidding, but also they are eliminating additional expenses that come with other companies that charge marketing and administrative fees. Clients using our online farmland auction platform will find we are able to charge an even lower commission (for an equal, if not better auction experience) without the added expenses of venue, printed material, refreshments and travel..

Typically, we charge commission as a percentage of a sale; but, we can also set up commission structures with caps on them or with just a basic flat fee. Our commission is negotiable and always based on what we are asked to deliver.  We want our clients to feel comfortable and understand what they are paying for. More importantly, we want our commission to be a fair representation of what we deliver and not a windfall. Our main goal is for our clients to realize MORE value from paying a commission and we believe that paying experienced auctioneers will result in a higher net to the seller even after paying commission. We believe our commission also helps relieve sellers of stress and ensures that your farm auction is done RIGHT. The easiest way to explain it is this: think of paying commission sort of like paying for insurance. You get a piece of mind that all the bases are covered and, in the end, you walk away satisfied everything is proper and there are no lingering concerns or fears.

Schedule a Time to Meet Online & Get an Auctioneer Commission Quote

Farmland Auction Fees

Auctioneer Commissions

Auctioneers Commissions for farm and farmland real estate are typically between 1% and 5% depending on several factors.  You can see our full schedule of auctioneer fees.

To start, it’s important to know that with a farmland auction, the commission can be paid by either the seller or the buyer. DreamDirt does not charge a buyer’s premium unless our client directs us to. We elect to leave the option open to the seller to decide if they wish for the commission to be paid “from the bid” – which is a seller’s commission, or “in addition to the bid” – which is a buyer’s premium. Any combination of the two that still achieves our stated commission is acceptable. For example, if our commission is 1%, a seller may decide to pay half, and have the buyer’s premium set to pay half. In many cases sellers will split the commission fee with the buyer.

With an auction, regardless of the type of auction, you are typically only paying the auction company rather than two brokers to sell the land resulting in lower fees. This isn’t always the case, but you have the option to control it. When you hire an auctioneer, you can actually choose to pay additional commission to compensate hiring a buyers agent that introduces a buyer to the auction but that fee is an additional cost. Depending on the scenario, there are many benefits to hiring a buyers agent! To read more on that topic, click here. At DreamDirt, we let the seller decide whether they want to pay additional commission to any buyers agent that registers a buyer. No matter your decision, we will help guide you through the process.

Auctioneer Commissions can vary based on the type of auction you choose to have.

  1. Live Auctions with Simultaneous Online Bidding: This is our most popular option for farmland auctions. You can look at this as the “full plate” of auctioneer and settlement services for your farmland real estate transaction. This option also includes full advertising and marketing of your farm property.
  2. Live In Person Auction: A live auction without online bidding may limit some bidders but we find that they will adapt to whatever you offer them for bidding options.  Live auctions are time tested and get our full marketing efforts.  Our staff of live auction professions are among the best.  Every team member that conducts your auction will be highly trained professionals, licensed to sell real estate and certified by the Professional Ringmans Institute.
  3. Online Only Farmland Auction: There are some really incredible seller advantages that have developed with the launch of our online only farmland auctions.  We have offered this type of auction for over 10 years and they have become increasingly popular becasue of the convenience and incredible results.  Our online only acutions receive full marketing efforts and are identical to our live auctions except all bidding is done online using our proprietary land software which offers a very safe seller experience as well as significant savings in auctioneer commissions.  

Free Farmland Auctioneer Commissions Quote

We are ready to secure the best price for your farmland property, equipment or machinery! DreamDirt auctions work – and we are ready to work for you to have your farm auction done RIGHT!

Jason Smith

Jason Smith

Auctioneer, Land Broker, Founder

Jason is an Auctioneer and Land Broker in Iowa and the surrounding states.  The DreamDirt team of auctioneers, land brokers, and realtors specialize in farmland sales primarily serving the heirs to family farms all across Iowa and some surrounding states.  Today's report details Iowa's current land market for land sold at auctions.

Email: Jason@dreamdirt.com | Phone: (515) 537-6633

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