Selling farmland is a major financial and emotional decision. For most individuals, it only happens once in their lifetime, and the sale method is one of the most important factors in determining the true market value of their farm. Whether you purchased your farm as an investment or inherited the farm through an estate, the goal is the same – maximize the value of your farmland.
For many landowners, a public auction is the most effective and efficient way to accomplish that goal.
At Midwest Land Management we offer a custom-tailored approach to selling farmland at auction. Our method creates competition, establishes a deadline and allows the market to determine the maximum value of your farm.
Creating Competition
When you sell a farm at auction, competition from multiple buyers is one of the most important factors. The buyer pool isn’t what it used to be. While the prospective buyer is likely local, we look for all buyers. The most likely buyers are local farmers, local investors, outside landowners, 1031 exchange buyers, or any possible combination. We need buyers from all groups to drive a successful sale. Each of these buyers may look at the farm in a different light. For the local farmer, the land could fit perfectly into his operation; the investor could be buying the farm for a well-respected tenant or looking at the investment as a long-term hold. The 1031 buyer may be motivated by their exchange timeline and purchasing the farm as a tax strategy.
At Midwest Land Management, we bring all prospective buyers to the table to create the competition needed. Reach out to hear more about our marketing strategy and how we ensure buyer competition.
Establishing a Deadline
When we bring a farm to public auction, there is a set time and place. The buyers know the terms and when/where the sale will take place. This helps alleviate some of the common problems that come with a private listing. For example, at the auction, the only thing being negotiated is the price. We remove financing and property sale contingencies, delayed timelines, rental negotiations, and any other offers that aren’t firm.
A Midwest Land Management auction also offers transparency, meaning all buyers bid at the same time on the same farm and have the same packet of information. Whether the buyer is in person, on the phone, or bidding online, everyone is afforded the same opportunity to bid. This is often important when settling an estate or dividing a farm that is owned as an undivided interest.
Determine the Maximum Value of Your Farm
Preparation and professionalism matter. Everything from the quality of the mailers to the consistency of the email marketing is important when selling farmland. If any marketing step is not fulfilled, there is a good chance you will not realize the maximum value of your farmland. A reputable firm with a comprehensive marketing plan is the best way for you to achieve the best results. Please feel free to reach out if you have any questions about our marketing approach. We would be happy to put a plan together that is the best fit for your farm.
For landowners considering their options, the best first step is to call a farmland real estate brokerage and have a conversation about your specific farm and wishes. Sometimes an auction is not the best fit, but the only way to know is through a detailed market analysis.
Are you selling farmland? We sell farmland in Iowa, South Dakota and Minnesota. Give Midwest Land Management a call to discuss whether an auction is the best fit for your farm.
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Midwest Land Management where “Land Is Our Business”.