Auction VS Traditional Listing How Will You Sell Your Farmland?

Farms and agricultural land for sale

Placing your farmland for sale is a big decision. Just as important as your decision to sell is how you choose to sell. Selling farm real estate can happen one of two ways: through a farmland auction and through traditional listing with a real estate agent.

For places experiencing an increase in population, farm property for sale is a hot commodity. Montana, for example, is estimated to increase by 14% by 2043. With these growing numbers, buyers and sellers alike have many questions on farmland auctions and traditional listings.

Farmland Auctions.

  • The seller chooses the date the property will sell. Auctions occur on certain days so the seller simply chooses which day to list their property.
  • The seller chooses the closing date.
  • Carrying costs are limited to an average of days.
  • Buyers compete against each other in the open. No third party interference
  • Property is sold “as is.”
  • Final payments are made within 30 to 45 days.
  • Web auctions have access to local, regional, and national markets.

    • Traditional Listing

  • Buyers make the decision of when they want to make an offer on a property
  • Buyer has the option to negotiate the closing date.
  • Until closing happens, cost can carry on for an unknown amount of time.
  • There is little to no pressure for buyers to rush into competing against each other.
  • Buyers have the option of negotiating the sell with contingencies.
  • The average home is on the market for 225 days.
  • Real estate agents work in local markets.
  • Offers and contracts come through real estate agents and not the buyer directly.

    • While the employment of farmers, ranchers and other workers within the agricultural industry are expected to see a 2% decrease by 2024, farming land for sale is still trending. Opposite of what many may think, farm properties for sale in auctions sell just as well as traditionally listings, sometimes selling for more than market value. Not to take away from traditional listings. Agents have the resources to connect buyers with sellers and make some of the biggest deals. A real estate agent could very well be the mind behind Ted Turner’s $20 million purchase of the Flying D Ranch in 1988.

    Now that you know the difference between auctions and traditional listings, you are on one step closer to selling your farmland and a fresh beginning.

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