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Tractor Talk Discussion Forum

ot selling a farm at auction

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Ray

01-28-2008 13:06:37




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Has anyone sold a farm at auction with the sealed bid system? I'm going to be selling 98 acres this spring and i'm trying to decide which way to go.The local auctioneers want 3% to 4% plus advertising.That could run into 20 grand pretty easy.A local lawyer who does the sealed bid sales said the whole cost would be around $3000.I'm not sure of a sealed bid sale,or if would draw the attention.




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James22

01-28-2008 18:55:13




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 Re: ot selling a farm at auction in reply to Ray, 01-28-2008 13:06:37  
One sealed bid auction I attended, only allowed the top 6 bidders to increase their bid, the remaining individuals with lower sealed bids were excused. A good way to control observers which have no intention to buy.
Unless you have large acreage and/or many parcels, the high demand for farm ground should bring out the necessary bidders without having an expensive auctioneer. Having an auctioneer could be an advantage for advertising large farms to bring in non-local money, or if the desire is to break everything up and sell individually, then subsequently resell in combined groupings, and lastly altogether, with the most money becoming the sale.

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dave guest

01-28-2008 17:43:32




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 Re: ot selling a farm at auction in reply to Ray, 01-28-2008 13:06:37  
Do it yourself with a lawyer unless you are in such a big hurry. Might be easiest money you ever made. I would never use auction except as last resort. Get appraisals, don't give anything away unless you desire to.



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Mark-Mi

01-28-2008 16:50:03




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 Re: ot selling a farm at auction in reply to Ray, 01-28-2008 13:06:37  
Ray
I done one myself for my mother and aunts.Advertised in all the newspapers and called all the big farmers around.News travels fast of a farm selling.Sealed bid got you a seat for the bids to be opened and a chance to bid again.Give plenty of time between bids,lot of money to be spending.Had lawyer finish details.They got out cheap selling a 78 acre farm.Mark



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BC in TN

01-28-2008 14:43:44




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 Re: ot selling a farm at auction in reply to Ray, 01-28-2008 13:06:37  
Ray:
I recently went to a farm auction in West TN.
The land sold two times in two different ways the owner then took the option which made him the most money.
First the land sold at auction in 4 to 10 acre tracts. Next the auctioneer sold the land in much larger blocks; one at about 50 acres and another at just over 100 acres. The land almost doubled at the larger acerages. Most of us figured the land would bring much more broken into tracts - go figure.

This type of auction could be an option for you - something to consider.

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ktheo1

01-28-2008 13:57:17




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 Re: ot selling a farm at auction in reply to Ray, 01-28-2008 13:06:37  
From my experience auctioneers will negotiate the commission.I have never understood why they charge on that basis any way . The way land is selling in central Illinois ,I could auction it off .I would go the sealed bid way .with the lawyer . It doesn't make any sense to me to charge the same rate for selling 40 a. as you do for 160A or 360A. They all use a sliding rate for everything else so why not real estate. Shop around and find someone hungry.

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John (C-IL)

01-28-2008 13:31:21




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 Re: ot selling a farm at auction in reply to Ray, 01-28-2008 13:06:37  
Generally the sealed bid thing goes pretty well. The sealed bid gets you a seat at the auction, then the bids are opened and the high bid is announced. At that point everyone is given a chance to up their bid untill only one bidder is left.

When you pay an auctioneer you are paying for more than the auction. You are also paying for advertising, the mailing list and/or the contact list, the legal work that the auctioneer does and a few other things. 3%-4% may sound like a lot, but as a realtor I probably wouldn't do it for less than 5% and I would want a 6 month listiing.

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James22

01-28-2008 19:05:09




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 Re: ot selling a farm at auction in reply to John (C-IL), 01-28-2008 13:31:21  
At least in Central Illinois,I don't see the need for a giving a realtor 5%. Spend a few minutes reviewing local sales and soil types to figure a price and put up a sign. If it doesn't sell in a couple of weeks, advertise in the AgriNews. If not priced in the stratosphere, it will sell in this market.



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