Why Selling at Auction Often Gets You More Than a Private Sale

If you’re thinking about selling farmland in Iowa, Nebraska, Minnesota, or Illinois, one of your first questions might be:

“Should I sell farmland at auction or list it privately?”

It’s a fair question and one we hear very often from nearly every landowner in our free consultations. In fact this is what our free consultation is for, helping you understand what is best for you. Many people assume that a private listing is safer or more traditional. Others worry that an auction might “give the land away.” The truth? Auctions are a superior method for selling farmland. It is especially well suited to selling tillable farmland or land that produces income.

Let’s break down why.

1. Auctions Create Competition and Competition Drives Price

The #1 reason auctions work so well is simple: they bring all the buyers to the same place at the same time, and they force them to compete. This strategy is the single biggest seller advantage you can have where a desirable property (all tillable and income producing land) is being offered for sale.

In a private sale, you might get one offer – maybe two. Even more of a slim chance of three or more offers. The disadvantage is that the buyer is in charge of offering you terms and decides what those terms are. Unlike an auction, each failed negotiation results in your going back to zero dollars and starting over. At an auction, you can get dozens of bidders and they all know they have to bring their best price, or go home empty-handed. Each time one bidder stalls or stops bidding, you do not go back to zero. In short, an auction always improves on where you are at dollar wise, but a failed negotiation with a private sale sends you back to $0 each time.

We’ve seen this play out again and again across counties in Iowa, Nebraska, Illinois, and Minnesota. Competitive bidding has pushed land prices well above appraised values, especially when multiple neighbors are involved. In fact, when you read the headlines and see record land prices, they were always set at auction.

2. Auctions Set a Clear Timeline and Get You Results Faster

Private sales can drag on for months sometimes longer and their no sale rate is astronomical. Negotiations stall, financing falls through, buyer renegotiate lower, and buyers come and go.

With an auction, you pick the date, you set the terms, and you sell the property to the highest bidder with no drawn-out back-and-forth negotiations.

For landowners looking to simplify their lives, settle an estate, or take advantage of the best market values, the speed and certainty of an auction will be a major advantage.

3. You’re in Control—Not the Buyer

Many people don’t realize this, but auctions give sellers more control than private listings.

At auction, you set the terms, closing date, possession, rent credits, survey requirements, and more. You can also sell with or without a reserve price. Everything is spelled out in advance, and buyers agree to your terms before bidding. Why wouldn’t you want to set the rules for your own land sale? Obviously you would!

Compare that to a private sale, where buyers often negotiate you down on every detail and you lack leverage when there is no competition, or open competition.

4. Today’s Market Is Perfect for Auctions

This current Midwest farmland market has all the ingredients for successful auctions. Strong buyer demand including Investors, farmers, and 1031 exchange buyers are all active—and willing to compete. A limited supply of quality land has made buyers eager and aggressive when the right farm hits the market today. Rising interest in transparent, fair buying processes.

Many buyers actually value auctions because they know where they stand and can see the competition bid against them. In many if not all situations the true price is unknown, knowing others are bidding brings people comfort to know others are in the same value range as they are.

Even in an uncertain political or economic climate, farmland remains a safe, long-term investment and buyers are still showing up ready to pay top dollar.

5. Auction Doesn’t Mean Desperation. It Means Strategy

There’s a lingering myth that auctions are only for distressed sales. That’s just not true especially today. The auction industry has grown so much over the last 100 years. Technology has especially changed how we do business, our ability to reach wide diverse audiences and the use of mobile technology is making participation incredibly simple.

Many of our most successful auction clients are savvy landowners who want to maximize their return, not leave money on the table. They understand that todays auction are a strategic, data-backed approach to selling one that uses marketing, timing, and competition to deliver the best possible price.

Real Results Speak Louder Than Theories

At DreamDirt, we’ve helped hundreds of families sell farmland through live and online land auctions. In many cases, auction results far exceeded what sellers thought was possible and certainly beat previous private sale offers and even pre-auction appraisals.

Wondering If Auction Is Right for You?

Let’s talk. Take us up on our free consultation and learn the best path forward. We offer no-pressure consultations and free farmland value estimates based on real-time sales data, not guesswork. If your goal is to get the best price, in the shortest amount of time, with the most transparency – an auction might be the smartest move you make.

Ready to Get Started or Just Talk More??

• Get a Free Market Analysis for your farmland 
• Schedule a no-obligation consultation, lets talk through the details. 
• Send me an email, we can chat that way too. 
• See our past auctions

Selling your farmland doesn’t have to be complicated—and it doesn’t have to be uncertain. Auctions give you the power to sell with confidence.