Land Auctions: What You Need to Know

Land auctions can be a great solution to consider when selling your property. Historically, land auctions took place in person, then graduated to hybrid auctions with both in-person and online bidding. Today, many auctions have transitioned again to online bidding entirely, bringing maximum exposure for your property.

This article walks you through the benefits of having an auction for your land sale, what makes a good auction situation for a seller and how to ensure you get the best bidder turnout.

Benefits of Having an Auction

Auctions are a fast, easy way to sell property. They limit the numerous showings from non-qualified buyers, the seller knows exactly when the property will sell, and holding an auction reduces the carrying costs of that property while it’s listed for sale.

An auction creates competition among pre-qualified buyers and determines a market value for the property. Remember, market value is what someone is willing to pay for the parcel and nothing drives that higher bidder competition. This process takes the negotiations off of the seller’s hands and is meant to make the sale of the property easier on the seller. Negotiations in a traditional sale can be challenging when you get one offer with an expiration date. This puts pressure on you to accept, reject or counter their offer.

What Makes a Good Auction Situation

How do you know if an auction is right for you? Outside of the benefits mentioned above, auctions tend to be favorable for liquidation of an inherited estate, retirement, or if the seller needs immediate cash.

From the property perspective, a good candidate for an auction would be a property that is very unique and extremely hard to value.

Marketing

A big fear in using an auction to sell your property is not getting bidder turnout. A well-planned aggressive marketing campaign is critical in the success of the auction. The marketing of that property along with online bidding can drastically increase the bidder turn out. If you decide to work with one of our American Legacy Land Co. agents, we will market your property through MLS exposure, the vast network of American Legacy Land Co. agents, digital marketing, listing on major land syndicate websites, and a premier partnership with AuctionTime.com.

American Legacy Land Co. has recently partnered with AuctionTime.com to hold a 100% online auction for your property. Their national reach and the local regional reach of the American Legacy Land Co. gives the highest exposure for your property.

Buyers at Auctions

Due diligence is required prior to the auction because when that auction closes, you are on the hook to purchase that property. A buyer's agent can help you in this process to get you ready for that purchase starting with determining a market value of the property. It’s such an advantage to determine a market value prior to bidding and an American Legacy Land Co. Agent can help you determine one. Due diligence also includes lining up financing, understanding what’s included in the property, and helping you discover if the land can be used for what you are hoping for. Reach out to an American Legacy Land Co. agent today to get some help raising your hand at your next auction.