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Online Land Auction Brings Excellent Results in Kossuth County, Iowa

By Jason Smith, CAI Auctioneer | Land Broker | Published May 03, 2019

Farmland Auction Kossuth County, IA

Yesterday we felt fortunate to represent the Melville family in the sale of their originally homesteaded farmland in Kossuth County, Iowa. The family chose to have their farm marketed and sold with an Online Land Auction. We were excited to have the opportunity to advertise and represent this farm! We took this listing in late March and were able to get our drone footage completed in early April. The farm included 317 acres of farmland of which 4.75 were part of the original homestead acreage site.

The Acreage Site For Sale

algona iowa land auction real estateThe acreage site was very popular among buyers and nearly 100 people attended the 2 hour property preview and open house just 4 days before the auction! The online bidding lot was viewed 1,903 times - just for the home alone! This was an old home that was built around 1920 with multiple outbuildings in good to poor condition. The home was last lived in in 1991 and was not up to modern standards.  In fact, the expense of installing a septic system was the buyers responsibility. Even though the auction was scheduled to end at 2PM, bidding was extended for 40 minutes because bidders were still competing for this acreage. Our online auctions have a "soft close" which means when somebody bids in the final 2 minutes, the clock is reset to 2 minutes. The home eventually sold to the highest bid of $74,050!

The Farmland For Sale in Kossuth County

farm real estate kossuth county iowaThe farmland was offered in 4 different tracts. Bidders were allowed to bid on any combination of tracts by bidding on the individual tracts of land. In order for a bidder to be the high bidder, they could only bid by the tract and had to keep bidding until they won that particular tract. They are the winning bidder when nobody places any additional bids and the clock runs out.

The farmland bidding was very aggressive in the final hour of the auction - so much so that the high bidder was changing on some tracts every 5-10 seconds. Bidders are allowed to use a 'max bid' function. This function allows our software to place bids for them. Essentially, the computer bids for them the same way they would bid, just 1 bid at a time and just enough to put them to the leading position. It was evident in this auction that some bidders were using that function as challenging bidders were instantly outbid when they used the 'quick bid' function. If you are bidding and this happens to you, that is a sign you are bidding against a bidder with a maximum bid placed in the system.

Kossuth County Iowa Land Auction Results

Tract 1: 96.7 Acres. 82.7 CSR2. $8,600/ac.
Tract 2: 64.2 Acres. 81 CSR2. $8,050/ac.
Tract 3: 69.3 Acres. 81.4 CSR2. $8,000/ac.
Tract 4: 75.4 Acres. 81.6 CSR2. $5,825/ac.
Tract 5: 4.7 Acres. Home with outbuildings. $74,050.

You can view the auction and results: Kossuth County Iowa Farmland Auction

How do Online Land  Auctions work?

Our Communications Manager Kristen Lowe snapped a photo during the auction that I thought told a neat story. When you have never taken part in one of our online land auctions it can be difficult to really draw a mental picture of what it looks like.

First let me say that with an Online Land Auction MOST bidding takes place online. I say 'most' because there are still opportunities for offline bidding because we want every potential bidder to have an opportunity to bid. We find there are really 3 types of bidders:

  • 95% of people already have, and will, bid online
  • 4% of people can't or don't bid online, and will enlist the help of another person to do it for them
  • 1% of people will come to us and bid in-person

It is extremely rare to see the 4% and even more rare to see the 1%. Often the 1% can, and have, bid online - but for another reason want to be in-person with us. Every one of our online land auctions allows for an alternative in-person bidding location. At this location, a person can come in and be in-person with our staff who will place their online bids for them. They will monitor the final hour of the timed online auction and are given the opportunity to place a bid simply by saying "I bid".

The photo below is what it looks like at the alternative in-person bidding location. This is our auction arena at our Farm Auction Technology Division in Mason City, IA. I am at the front of the room at a desk that has 2 computers monitoring the online auction. One computer allows me as the auctioneer to input the live bidders bids into the auction, the other is my administrative computer that allows me to control the auction bid increments and asking prices. In this photo there is only 1 bidder and 3 observers. Our control room is located to the right of this auction arena, and to the left are our business offices and reception area where other staff members are monitoring the auction and contacting bidders by telephone (especially the "out" bidders so they can answer questions and encourage bidding).

Image from iOS (13)

Online bidders in the Kossuth County Auction saw the following image. At this point, there was still around 40 minutes left in the auction but it was during the final hour of the auction when the most intense bidding occured. You can see that a person simply needs to log in and click the 'Quick Bid' button to bid. (The computer this was snapped on was not logged in as a bidder as it was a staff member, so the screen would look slightly different as a bidder). When a bid is placed on one of the tracts of land the tile will light up red and flash so you are aware another bidder placed a bid on that tract of land. We've made the online bidding very simple to understand and even more simple to use. People often remark just how easy it is to bid!

Kossuth County Iowa farm real estate auction

This auction had 21 registered bidders that participated and placed bids on the auction. This generated a total price of $2,417,880.00 on the farm real estate across all tracts.  

SELLING FARMLAND?  LET US GET YOU ACROSS THE FINISH LINE SAFELY

You are one step away from making a very important decision. We offer more advertising, less stress, and great results. There are lots of ways to get started. The easiest is to give us a call and visit about your options. The process will look like the following, from beginning to end:

Typical Land Auction Steps

  • Step 1 Consultation.  Call us at 641-423-6400 or me (515)537-6633
  • Step 2 Valuation
  • Step 3 Marketing Proposal
  • Step 4 Listing Agreement
  • Step 5 Advertising
  • Step 6 Auction Day
  • Step 7 Closing and Settlement

Jason SmithJASON SMITH, CAI     AUCTIONEER | LAND BROKER

(515) 537-6633

Jason@dreamdirt.com 

Jason is an auctioneer and licensed land broker that has represented hundreds of sellers of family farms across the Midwest. His modern approach to land auctions has helped create a smoother buyer and seller journey that benefits both sellers and buyers in meaningful ways. If you want to learn more about selling farmland by listing or auction, contact Jason and see how you can enjoy the easiest and most productive farmland sale possible.

 

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