Farm Auction Questions. Answered.



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

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