What could you do with an extra $184,300?
Today we sold land for the Paul McKinney Estate in Ringgold County Iowa. We conducted this land auction as an online auction. Not one, but two independent appraisals were done for a pair of farms and the auction results of each tract beat the appraiser's values.
In the case of Tract 2, the online auction exceeded the farmland appraisers value by $2,150 per acre. The results of Tract 1 beat the land appraisers value by $275 per acre. In total, the two tracts brought a combined $184,300 more than the appraiser estimated the farms were worth!
Now, don't get us wrong, we love our appraiser friends and they do the best they can with what they have. In this case, the appraisals were right and were based on the correct data and arrived at the price they should have. Its important to know that an appraisal justifies a value but it doesn't tell you exactly what something will sell for. When selling, most people want to achieve the highest price possible. Read on and we'll tell you how DreamDirt made that happen.
Nobody can predict when a farm will bring much more than the appraised value. The only way to find out if it can happen is to use an auction as the marketing method you sell your farm. With a listing, you price the farm yourself therefore limiting any potential to capture an upside. With an auction, you let the market price the farm with an ascending bidding process. If the farms had been listed for the appraisal amounts, the seller likely would have gotten near the appraisal amounts, possibly a little less, but definitely not ABOVE. In the case of these two farms, the fact that they sold at auction meant that they walked away with an extra $184,300. Why did they achieve that amount above their appraisal?
Sellers Keys to Success. Why did they succeeed in their land sale.
1. The sellers chose the auction method of marketing which does not limit upside by pricing the farm - they let the buyers decide. We wrote about the use of online auctions vs. live auctions in our last blog - you'll find it interesting!
2. They chose an online auction which limits social pressures and makes the process convenient for bidders.
3. They chose DreamDirt as their auctioneer. The sellers benefitted from our very inclusive and thorough marketing campaign as well as our experience conducting Timed Online Auctions.
We continue to see Timed Online Land Auctions bringing exceptional results for our sellers, and convenience and reduced social pressures for our buyers. This method of land auctions creates a positive situation that both buyers and sellers like. DreamDirt's customizable marketing products for farm real estate make it possible for everybody to bid, even those without access to the Internet. This auction, while it was conducted online, had five offline bidders who were assisted by our team in placing bids.
If you are going to sell land...
Are you researching and learning about selling land? DreamDirt has a myriad of resources to help you learn more about selling. Download our free Ebook and learn the Secrets of Selling Farm & Land Real Estate. You can call me at 515-202-7687 or email Tom@dreamdirt.com
See the Farms that we sold
Here are the preview videos our team created for today's successful auction.
Tract 1 PAUL MCKINNEY ESTATE LAND AUCTION
Tract 2 Paul McKinney Estate Land Auction