Land auction question answer

SHALER · Nov 4, 2018

A couple of pages back you will see a post labeled land auction question. I was stumped because an auctioneer in my area was offering for sale a farm that he chopped in to 6 parcels. This is very common in my area. what is also common is to offer the farm as parcels, and then tally the bids and offer it as a whole if the bid for the whole exceeds the cumulative parcel bids. In this specific case the auctioneer was offering it in parcels ONLY and was not going to try to sell as a whole. I got my answer. One of the sellers family members (that will directly benefit from the sale of the parcels) wants to buy one of the parcels, but has no interest in the entire farm. Therefore they wish to avoid someone buying the entire farm and buying the parcel away from the family member. You may ask why the family simply excludes the desired parcel from the sale. The family has decided this is the best way of determining the FMV of the parcel in question.

tomturkey · Nov 4, 2018

Well that is probably the most equitable way to do it, family member will buy at fmv at auction. The peculiar thing is a portion of his bid will come back to him as his percentage of the split of assets from all parcels sale prices, but a percentage of his/her bid also is paying off the other family members. While this all seems "fair" and "right" seems a shame the "family" could not have determined a price for said parcel and sold it to the family member. Maybe I misunderstood, maybe the family member won't be bidding on his/her parcel. But alls fair in love and estate liquidation. give me my money, and each member will get the same, right down to the penny. gobble

K Effective · Nov 5, 2018

The only hard, fast rules in inheritance are that common sense goes out the window first, communication prior to the event is terrible, and greed makes people ugly.

oldtanker · Nov 5, 2018

(quoted from post at 05:16:43 11/05/18) The only hard, fast rules in inheritance are that common sense goes out the window first, communication prior to the event is terrible, and greed makes people ugly.

Extremely well put! Have seen that all too often.

Rick

SDE · Nov 5, 2018

A land auction that I went to years ago, was different than any other I had encountered. They got bids on all the parcels separately. Then they went back and re-bid all the parcels again. They continue the cycle until none of the bids changed. That way if you did not get the parcel you wanted, you could bid on a different one that you may not have bid on, that was bid earlier than the one you wanted.

Frank 41 · Nov 5, 2018

I went to a sale recently at Mendota, IL that had 3 tillable parcels and a homestead. #1 and 2 had FSA tillable acres, surveyed acres outside the fence line, and selling acres that were up to the fence line. Also #1 and two were adjacent to each other and very similar production numbers, PI 145.3 and PI 143.3. #1 brought $9700 and #2 brought $7750. Capital Ag was the auctioneer for a bank managed trust.

Land auction question answer

SHALER

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tomturkey

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K Effective

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oldtanker

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SDE

Well-known Member

Frank 41

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