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Selling farmland at auction can seem like a daunting task, but it can be rewarding with the right knowledge and strategy. A smooth farmland auction is a highly successful and profitable experience. Whether you’re a seasoned farmer looking to retire or a landowner looking to liquidate, an auction is often the best way to get the most value for your land.

However, like any other sale, there are certain dos and don’ts that you should keep in mind to ensure a smooth and successful auction process. Learn how to get ready for a successful sale today by reading the dos and don’ts of selling your farmland at auction.

The Dos

Before putting your farmland up for auction, it’s essential to gather as much information as possible regarding the local auctioning process and your property. This knowledge will give you a better understanding of the potential value of your land and help you set a realistic reserve price.

Unfortunately, it’s easy to overlook important steps if you’re new to auctions. Let’s examine a handful of critical things you must do when getting ready to auction a farmland property.

Do Choose a Good Auctioneer

The auctioneer you choose can make or break your auction experience. Make sure to select an experienced and reputable auctioneer who has a proven track record of selling farmland. Your auctioneer will help with marketing the property, organizing materials for the auction, and more. They should also have a strong understanding of the local market that helps them ensure the most valuable results for sellers.

Do Prepare Your Land

Avoid selling your property as-is if you haven’t had a professional inspect the property to assess its value. Just like staging a home for sale, it’s crucial to prepare your farmland before the auction.

Clear any debris or clutter, fix any issues with fences or buildings, and ensure that the property is accessible for potential buyers to inspect. That way, you can present bidders with a valuable property that is worth investing in, not a piece of land that they will need to do major work to repair.

Once you clean or repair areas you know need attention, have a farmland expert inspect the property so you can find any additional opportunities to increase its value. You should also work with a reputable farmland real estate agent because they can help you contact reliable contractors or inspectors before the auction.

Do Market Your Auction

While the auctioneer or real estate agent will handle most of the marketing, it’s important to spread the word about your upcoming auction through various channels.

Consider using social media or newspapers. Talk with the professional working on your marketing strategy about how you intend to market the property to ensure everyone is on the same page and supporting each other’s actions.

Auctions can attract serious buyers, but it’s essential to avoid relying solely on the auction itself for marketing your farmland. Be proactive in promoting your land in many ways to attract a larger pool of potential buyers.

Do Have a Contingency Plan

Despite your thorough planning and preparation, auctions can be unpredictable. It’s always a good idea to have a backup plan in case the auction doesn’t go as expected. For example, you can set a minimum reserve price or have a post-auction negotiation strategy.

Do Be Transparent

Transparency is crucial when selling farmland at auction. Be upfront about any potential issues or restrictions with the land, such as zoning regulations or environmental concerns. The goal is to build trust with potential buyers and earn a satisfying sale price.

The Don’ts

Just as important as the measures you should take when selling your farmland at auction are the pitfalls that you need to avoid. While the auction process can be rewarding, certain missteps will significantly impact the profitability and success of your sale.

The following don’ts of farmland auctions shed light on these potential mistakes. By steering clear of these issues, you can make sure your sale goes smoothly and get the best possible return on your land.

Don’t Wait Until the Last Minute

It’s essential to give yourself enough time to prepare for an auction. Waiting until the last minute can result in rushed preparations and potentially lower returns on your farmland.

Give yourself ample time to complete the aforementioned repairs, as well as general upkeep and organization. Auctions also involve a lot of legal paperwork, including contracts and property disclosures.

Only take legal advice from experts who can work with you directly. Consult with a lawyer before the auction to ensure that all the necessary documents are in order.

Don’t Overprice Your Land

Setting an unrealistic reserve price can deter potential buyers and result in your land not being sold at all. Of course, this doesn’t mean you have to underprice your property, either.

Another benefit of not waiting until the last minute to get everything ready for your auction is that you can effectively determine what your property is worth. Make sure to set a reasonable reserve price based on market research and the advice of your auctioneer.

Don’t Neglect Your Emotions

Selling farmland can be an emotional process, especially if it has been in your family for generations. It’s essential to approach the auction with a business mindset and not let emotions cloud your judgment.

Take time before meeting with any real estate agents or auctioneers to sit down and determine if you’re truly ready to part ways with the property. Working with the right experts makes a big impact on how comfortable you will feel during the auction, so hire professionals who you trust.

Don’t Forget To Factor in the Costs

It’s important to consider all the costs associated with selling farmland at auction, including marketing expenses, auctioneer fees, and potential taxes. Make sure to factor these into your reserve price to avoid any unexpected expenses. Considering this aspect ensures you can accurately calculate how much you expect to make off the sale if the auction runs smoothly.

Prepare for Your Auction Today

There are many dos and don’ts when selling your farmland for auction, and knowing them will prove invaluable when you are getting ready for your farmland sale. Selling farmland at auction can be a profitable and efficient way to liquidate your property.

By following these dos and don’ts, you will ensure a smooth and successful auction process that will result in the best value for your land. Remember to hire the right auctioneer, prepare your land, market effectively, and be transparent throughout the process.

With these tips in mind, you’ll be well on your way to a successful farmland auction. Talk to our experts at Midwest Land Management for real estate land auctions that will help you match your property to the right bidder.