How To Prepare for Attending a Farmland Auction
Farmland auctions help buyers find great properties at great values, which they can use for their own farming needs. For sellers, these events are opportunities to profit from their land, so it’s exciting for both parties. Ensuring the best results requires both parties to prepare themselves ahead of time so they have all the information they need.
Get ready before the auction arrives. With a few easy steps, such as reading the guide below, you can expect a stress-free experience. As a buyer, getting your money ready is certainly important, but there’s more to know before the auction day. As a seller, the lead-up to the big day may feel stressful, so plan your schedule with our tips below. Check out our comprehensive guide to learn how to prepare for attending a farmland auction.
The Auction Location
One of the factors you will encounter at an auction is the location. Farmland auctions come in two common forms—in person and online. This means that one of the key ways to prepare for the auction is by planning your transportation and schedule accordingly. For example, if you have to travel far to attend, then give yourself enough time to get ready and avoid rushing. Make sure to anticipate any traffic. Whether you’re buying or selling the property up for auction, planning the day carefully is key for ensuring you don’t overlook important details. For an in-person auction, find out ahead of time what the address of the venue is and what you’ll need to register upon arrival. Registration is common but not always a requirement, so talk to someone on-site about how to get ready for this specific event.
Once you establish these details, you can begin planning when you’ll need to leave your home, what you’ll need to bring, and where you’re going. Preparing poorly for the drive to the auction can impact your experience before you even arrive. An in-person auction can take place in various types of venues. In many cases, you’ll go to an indoor venue away from the property where bidders gather to give their bids to an auctioneer. Some auctions may also take place on the property being sold, so you have an opportunity to see the land up close before you bid.
Virtual Farmland Options
Online farmland auctions are another common and convenient way to place bids. You can look at the property and place bids from your own home during an online auction, so you don’t have to worry about transportation at all. You may still need to register for an online auction, but you can do that from home before the auction occurs. Online auctions are convenient, but you should get familiar with them ahead of time.
This ensures you can comfortably navigate the website during the auction. Learn about the registration and how the online auction house takes bids so you can focus on the property and avoid making novice mistakes during your first auction. Luckily, good online auctions should be fairly straightforward to navigate, so don’t expect a massive learning curve. Reliable auction businesses will feature plenty of critical details about any property available for auction, such as high-quality images of the area. Both in-person and online auction choices work successfully, so the right choice relies on your preferences. Now that you know how to prepare for the auction location, let’s discuss how to prepare for your specific role on the big day.
How Bids Are Accepted
The venue isn’t the only thing that differs between farmland auctions. These auctions can vary depending on how they accept the final bid. The most common types of farmland auctions include:
- Absolute auction
- Reserved auction
- Minimum bid auction
Preparing for Each Auction
For all three auctions, bidders should have their money ready and attention focused on the auctioneer. The conclusion of the auction is where the biggest differences in each of the bidding options play out. For instance, an absolute auction involves the highest bidder getting the property. This style of auction relies on a time limit, during which all bidders give their offers to the auctioneer until time’s up. A reserved auction means the landowner reserves the right to turn down the highest bid. So, if you’re a buyer, prepare yourself by knowing that even if you place the highest bid, you may not get the property.
This is why a key part of learning how to prepare for attending a farmland auction is understanding what style of bidding they will use. A minimum bid auction involves the land seller establishing a minimum bid. Once the minimum bid is determined, the land won’t sell until that bid is met. It’s critical for the bidders to learn each auction style so they can adjust their expectations accordingly. This is also essential for the sellers to understand because each auction style presents different benefits depending on the seller’s needs. For example, the minimum bid is worth considering because it prevents a property from selling for less than the owner’s proposed minimum value.
Start Preparing Today
As you can see, the experience for the bidders at a farmland auction is fairly straightforward. In both live and online venues, you arrive and register before placing your bids with the auctioneer. Understanding how you obtain the land requires learning the various auction styles, but each option is equally easy to navigate. For the land sellers, this experience may seem daunting due to the many factors you have to account for, such as where the auction takes place, how you register everyone, and beyond. We have good news; you won’t have to worry about a lot of those logistics when you work with a reliable auction business.
At Midwest Land Management, we have an easy way for buyers to find properties and sellers to put their land up for sale. We specialize in Midwest land auctions, and our website features a detailed look at each property so the bidders can start their research with ease. The sooner they can learn about the property, the sooner they can determine whether they’re ready to bid, and how much money they’re willing to put into that bid. Reach out to us today.