This is a great question and the answer is that it depends on the goals for your farm sale and the attributes of the farm. A farm sale expert at Halderman Real Estate Services will listen to your needs and recommend the proper path for you.

Auctions were once used to sell financially distressed real estate and many people equated them to a Sheriff’s sale. Today, an auction is the premier way to capture the top market value for farm real estate. Halderman Real Estate Services has been selling farms at auction for more than 42 years. Whether the auction is a traditional live sale with an auctioneer or an online only auction, the resulting competition results in maximum value for the seller. It is the truest form of capitalism.

A private listing is one where the seller sets an asking price and buyers make offers.  Sometimes these offers contain contingencies, like “subject to financing”.  Houses are commonly sold using private listings.

Properties that sell best at auction include those that appeal to a broad spectrum of buyers.  Cropland, woods, recreational land and farmsteads are great examples. Specialized real estate with a limited buyer pool may best be sold with the typical private listing.

Advantages to the seller a public auction:

1. The seller receives multiple offers during the auction.
2. The entire process is transparent which is highly valuable to estate executors, trustees, and others working in a fiduciary capacity.
3. Due to competitive bidding, the seller is confident they received fair market value and maximized their price.
4. The seller knows when the farm will sell and can make plans for the proceeds.
5. By using an auction with reserve, the seller remains in total control of whether they accept the final bid.
6. Large farms can be easily divided into smaller tracts to allow for more competitive bidding maximizing the sale price.
7. The seller sets the terms. There are no contingencies to the buyer’s offer.

Advantages to the buyer at public auction:

1. Transparency ensures they didn’t pay a price that was above the market value.
2. If the auction includes online bidding, the buyer can bid in relative privacy from their home. Many farm buyers don’t want their friends and neighbors knowing they are bidding until after the sale is complete.

If you are considering a farm sale, Halderman Real Estate Services has answers to your questions. Over the past 40+ years, Halderman helped thousands of farm sellers achieve their goals and maximize the value of their farmland asset. Contact us at Halderman.com or 800.424.2324 for more information.  Halderman Can Help!