Selling Your Farm or Ranch by Auction, Part Three:
Three Factors to Consider When Deciding to Sell by Auction
By J.D. Hewitt
If you’re considering the sale, or partial sale of your farm or ranch, perhaps you’ve thought about the possibility of sale by auction. A lot of time and thought goes into the process of determining when and how to sell, and as a land owner you have a great deal on your mind. Whether you’re considering the sale of a property or are just curious, here are some helpful tips to determine if an auction is right for your property.
What makes your property a good candidate to be sold at auction? There are three main factors that influence the likelihood that a specific property is well-suited for sale by auction.
First, we would consider access to the property and how many access points there are. It can be helpful to have the ability to parcel the property in smaller pieces, and access is a key component.
Second, if the property should be divided into parcels or tracts, the usability of these parcels impacts the ability to provide a varied offering. For example, if a property includes both grassland and farmland, a more diverse crowd might be interested. And the more diverse the audience becomes, and the more individual bidders are interested, more competition is generated.
A third important factor is the local market demand for the specific type of property being considered for auction and the potential buying audience. For instance; What is the age of operators in the area, their financial capacity, size of operations, and the current market conditions that might affect the buying audience? Additionally, it’s important to think about whether these circumstances provide the potential to increase or limit the abilities of the buying audience.
At some point, an outside perspective is needed, and it’s important to have input from a trusted, well-diversified brokerage with experience in farm and ranch auctions. At Hewitt Land Company, we have your best interest in mind. From our values that form the foundation of our philosophy to our deep roots in farming, ranching and business, it’s more than a deal. It’s about ensuring that our clients’ best interests are served.
Please contact us to learn more about whether your property is a good fit for an auction or if you are interested in a no-cost, no-obligation assessment. We would be glad to be of help as you consider options for the sale of your property.
This article follows the second article in this series, “Finding the Best Fit for Your Property,” by Tanner Hewitt, and the first article in this series, “Why Choose an Auction,” by J.D. Hewitt. View this post to catch up with this series.