Written by: Ben Gardiner
Today’s seller has choices when considering how to sell their land – is a live auction, an online auction or private treaty listing right choice? Before you make a decision, take a look at some of the benefits of each method.
SELLING LAND AT AUCTION
Selling land at auction has become mainstream since Reck Agri Realty & Auction conducted our first land auction. The process is efficient and timely, and has many other benefits, including the following.
• Auctions increase marketability and affordability for a larger pool of buyers by offering the property in a variety of ways
• Seller dictates the terms and conditions of the sale
• Allows transparency between competing bidders
• Provides finality with a definite sale date
• Entices buyers to prepare and make timely decisions
• Streamlines the transaction and eliminates negotiations, which can preserve relationships in multiple-owner situations
• Determines current value and allows for fluctuations in the market
Auctions can be conducted as absolute or with reserve. When Sellers choose to put a reserve on a property, it means that if the total bids do not meet or exceed an established price threshold on auction day, the property will not sell. The reserve price is often kept confidential between the Seller and Broker. An absolute auction means that the property will sell at the fall of the gavel – no exceptions. Although it appears risky, absolute auctions will often attract more buyers
because of the certainty that the property will sell.
LIVE VS ONLINE AUCTIONS
A live auction is a publicly held sale of property on a specific date, time, and location. This auction format allows for the most flexibility to offer a property in a variety of ways – multiple parcels, combinations and/or a single unit. Live auctions by Reck Agri Realty & Auction benefit from our proprietary bidding platform
that streams live auctions in real time allowing bidders to bid in-person, online through our website, or by phone call with one of our team members.
An online-only auction is also a publicly held sale of property conducted exclusively through our innovative web-based auction platform during a specified time period – usually 1.5 to 2.5 days. The timed format is similar to eBay allowing bidders to place bids anonymously in established increments (Reck Agri Realty & Auction holds the identities of buyers confidential). The platform utilizes a ‘soft close’ which extends the bidding time until 5 minutes have passed without any active bidding. This ensures that bidders will have ample time to place their bids. It is important to note that this format allows for multiple parcels, but the parcels cannot be offered in any combinations or as a single unit – each parcel sells independently of the others.
When selling by private treaty, the property is offered at a specific price, and terms of the sale are confidentially negotiated between the Seller(s) and Buyer(s) with the assistance of a broker. This method affords the seller(s) control over both the asking price and terms, and allows the seller to consider offers at his/her discretion. It also provides confidentiality due to the ‘private’ nature of the process.
In any situation, you can count on Reck Agri Realty & Auction to work with you to determine which method of sale is best for you. Often the best method of sale is determined by the factors discussed above and the location of your property as well as current market conditions. We’ll take the same comprehensive approach to marketing your property through our vast network, and you’ll enjoy our commitment to customer service.
In any situation, you can count on Reck Agri Realty & Auction to work with you to determine which method of sale is best for you.