Selling Farmland Using An Auctioneer
Selling Farmland in Iowa
When you are selling farmland there are 3 typical options to sell your asset.
1. You can sell it yourself
2. You can sell it by private treaty negotiations through a land broker
3. You can hire an auctioneer to market and sell the property
We are both land brokers and auctioneers so we provide both services but today I want to talk about farmland sales by auction. It is very typical to sell farmland by auction just about everywhere. In fact in Iowa, if you do not sell by auction some people may question why you are listing the farm instead of selling by auction. Buyers trust the auction process and it gives them a sense of security in pricing the property. They know if a person is bidding against them then they are not overpaying for the farm.
Any type of real estate can be sold at auction and it does very well. In fact there are thousands of examples where auctions have moved properties and turned them into cash while neighboring homes or farms languished on the market for months and years to come. A properly marketed auction will always, always, always bring market value and it can do it in 60, on a timeline the seller can count on with no contingencies because at auction we take cash bids ONLY!
So why then do some people choose to list a property instead of use an auction to market it? First let me tell you that an auction is a marketing method no different than a listing is a marketing method. A listing is a “drip marketing” where the property is placed in advertising with many other properties hoping somebody will notice it. An auction is an “aggressive saturation marketing” method where your property only is spotlighted in ads and heavily marketed for a 4-5 week period. During this time we follow a timeline we’ve given you ahead of time, its very methodical and well thought out. It matches your asset and it would be difficult for anybody to not see or ignore it. Listings and auctions are marketing methods, they try to do the same thing in two different ways. So back to the original question why do some list instead of auction? In my experience the word Auction has a negative connotation to those that are not accustomed to them. Today auctions are more popular as a marketing method than ever! Many of the people selling farmland today are located outside of Iowa and they remember the days when auctioneers were often small mom and pop operations often without many resources to touch the world outside the local market. Some people believe that auctions are a last resort, worst case scenario to sell something. They believe that an auction is only used when you have no choice. Some do not want to draw attention to themselves. Some just don’t have faith an auction can achieve what we claim it will.
I’m here to tell you none of those are true! Auctions are not a last resort, they should be a first and final choice. Auctions do always produce market value and create competition for your assets. This breeds confidence in buyers in that they are not overpaying. Today’s auctioneers are more advanced than ever and often cover large geographic areas, they are well versed in marketing techniques and have more resources than ever.
If you have a vision of a man in a cowboy hat, western shirt with ivory buttons and cowboy boots I encourage you to visit us. You are more likely to find a professional in a suit and tie that is well educated from college degree to continuous adult education through organizations like state and national auctioneers associations. If you are the type of person that does not want to draw attention there isn’t much I can tell you, a listing will work for you but you have to weigh the discomfort against the discount you’ll likely experience selling by listing.
Auctions work and auctioneers are professionals. At DreamDirt we supply you with premium marketing products from the copy written for your auction to the photography used to sell your property and we invite you to consider using an auction to market and sell your property. We provide free no obligation proposals for your property for both listings and auctions and we hope you’ll contact us when its time for you to sell any of your assets from machinery to farmland. You can reach us Toll Free at (855)376-3478
Jason J Smith
Auctioneer & Land Broker
Jason is an experienced farmland broker and auctioneer with extensive experience in farmland sales across this Midwest. Jason has worked with hundreds of clients to create advantageous outcomes. If you are selling land schedule a consultation with Jason by calling or using the calendar.
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