A Farm Sale from Soup To Nuts

From the first time a potential client contacts me and right up until the time the auction starts, there is always a sense of uncertainty.

The owners of the farm are curious:

How does the auction work? If we have a bad day and the price doesn't get very high, are we required to sell? How does the online auction work? What if there are technical difficulties and people cannot bid, what do they do? Who will be bidding on my farm?

We have so many questions.

All these issues are addressed when meeting with potential clients before they ever sign a listing contract.

During this meeting, we typically discuss two factors: how a real estate auction operates, and when people are pushed, they usually pay more than they normally would on a conventional listing.

One common worry is whether they are obligated to sell if the auction doesn’t yield a satisfactory price due to unforeseen circumstances. To alleviate their concerns, I reassure them they are not obliged to sell the property if the highest bid falls significantly below market value. It is worth noting that such situations are rare, having occurred only once in my 35-year career.

During our discussions, I also emphasized the benefits of online auctions over in-person ones. We explore how online auctions attract serious bidders while maintaining privacy, as potential buyers prefer not to reveal their intentions. Additionally, the owners appreciate the convenience of avoiding a crowded room with numerous curious onlookers and only a few serious bidders.

 

The listing contract is signed after the initial consultation, and the questions are answered. The auction date is set, marketing materials are manufactured, and the advertising schedule is initiated. I also personally contact neighbors and farmland buyers known to me for a personal invitation to bid on the property.

Auction day is always stressful, no matter if it's an in-person auction or an online auction… we all fear the unknown. Will anybody show up to bid? Will they bid high enough to satisfy the owner? Will the technology work correctly? Will someone get cute and try to game the system?

 

However, it is all worthwhile in the end. Most of the time, an auction will bring more money to the owners than a conventional listing because of the competition it brings.

If you would like to discuss your farm or simply talk about life in general, please feel free to reach out to me at 765-427-5052.

 

Respectfully

Brad Neihouser

Comments

Post a Comment

Popular posts from this blog

A Listening Ear.

Image
  Compassion is a helpful quality in many professions; however, when you think about commercial real estate, compassion may not come to mind.  Let me tell you a story. I was recently asked to visit with a potential seller to discuss a property they were considering putting on the market. Prior to our meeting, I had been briefed on the situation, did some preliminary research, and felt confident I would get the listing and make the sale. When I arrived, the prospect had a different idea. She had just lost her husband, who, according to her, was the face of the business. The conversation centered mostly around the man her husband was, what he meant to her, how much she missed him, and everything he had poured into their business. This woman was looking for a friendly ear, so I listened. How could I not? Towards the end of our visit, we did transition to why I was there and got down to the business of it all. I left with the hope that I was able to provide her with good, dependabl
Read more

A Commercial Building Sale from Soup to Nuts

Image
  Selling a commercial building is not something that is done spur of the moment. There are only a few reasons why an owner would choose to sell a valuable commercial building. #1 Retirement. The owner retired and sold their business and no longer needs the building. #2 Expansion. The owner may have outgrown the building and is purchasing another building. There is an immense about of thought and tax planning that goes into selling an established commercial building. But, once the decision is made to sell, the owner selects a commercial broker to handle the marketing and sale of the property. The next step is to d etermine the asking price with your broker. This is where it gets really interesting… The asking price is crucial for attracting potential buyers. Some brokers may suggest a pie-in-the-sky value just so they can secure the listing (A horrible idea ). However, a more prudent approach is to price the property approximately 15% above the market value to maximize the return. Th
Read more

Prospecting: The Thoughtful Way

Image
Prospecting: The Thoughtful Way In any kind of sales, especially commercial real estate, you will most likely need to do some kind of prospecting for new clients. An old mentor of mine once said that new business doesn’t just walk in the door all the time, and wow, is that true. When you think of prospecting, the first thing to come to mind is probably the dreaded “cold call”. Everyone knows what I’m talking about, whether you’ve received them or done them yourself. The pitch for the latest service, investment, or product always seems to be the same and generally ends the same as well, without commitment. Instead of blind, cold prospecting, what about taking the time to research potential clients, obtain a base level understanding of their property, and make a “warm call”? What would that look like? Try sending an introductory letter or other mailed version of outreach. Perhaps include a photo or map of their property, including comparable sales, other current listings, and/o
Read more