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What To Expect At Farmland Auctions

Thursday, March 23rd, 2017
property auctions

Farmland auctions are different than an average property auction. Many times, land is sold in separate pieces called tracts. When farmland is divided into tracts, each area is auctioned by itself. All of the farmland tracts will be offered as a combined item afterward. Potential land buyers will be able to bid up the individual tracts or a combined lot in the same auction.

Farmland auctions often have lower sales than a regular auction and bidding requires a particularly keen eye, as things can get complicated. In comparison to the traditional bidding process, buyers are given additional time to call a spouse or their bank before making a decision. The process of selling several farm tracts may take half an hour or more. It is important to know about the types of farmland auctions and factors to consider before bidding at one of these events.

Types of farmland auctions

The first type of farmland auction is referred to as an absolute auction. The farmland is sold to the highest bidder, regardless of the bid price. These auctions offer added excitement and participation, as land can be purchased at unbelievably low prices.

The second type is referred to as a reserve auction or an auction subject to confirmation. This type of sale means the highest bid will be reduced, so it is more like a purchase offer than a sale. The minimum bid will not be published and the farmland’s seller will reserve the right to accept or decline the highest bid.

Things to consider while bidding at farmland auctions

There are several things you should consider before deciding how much you are going to spend and whether or not you should bid at all. Farmland is often quite remote. If the land is too far away from your other property, it may not be worth purchasing. Sometimes, the road leading to the land can be long, winding, and in rough shape, which means you will have to pay for repairs.

Another important aspect of farmland is the amount of tillable acres. Check all the details regarding the acreage before going to the auction. Decide on what you will need to make the land profitable. Take into account the area, the amount of acres you can grow on, and whether you will have to make improvements to the land.

To learn more about farmland auctions, call the experts at High Plains Auctioneers today. You can call us at (806) 244-6776 or Contact Us by email for more information about our services. You can also view our Upcoming Auctions to see what we have available!