Top Dollar Way To Sell Farm Land

Top Dollar Way To Sell Farm Land SPECIALTY/SERVICES Specialty/Services 4-6-35 If you're thinking about selling any farm land, you may want to look into Real Auction, a new computerassisted method of selling land that, according to those behind it, offers key advantages to both buyer and seller. Under the "old" or conventional auction method, land is parceled out and each parcel is bid on separately. Then, the tract is bid on as a whole unit. Whichever method receives the highest total price is the one used too sell the farm. The new Real Auction method goes a step further. Combinations of two or more parcels can be bid upon, too. What's more, the entire farm, or any part of it, is available for sale at all times until the last bid is in, as determined by the auctioneer. Since bids on 10 or more combinations of pareels can get confusing, a computer is used to keep track of them and to determine which combination of bids is bringing the highest total return. "Real Auction allows buyers to bid on exactly what they want without getting something they don't want," explains Howard Sturm, general manager of a Real Market system in Cannon Falls, Minn. "For the seller, Real Auction offers greater asssurance of getting top-dollar return." "The real key here is not the computer, but the professionally trained people who set up a Real Auction land sale," notes Sturm. "From four to nine Real Auction associates help recruit bidders, determine the best parcelization boundaries and consult with bidders during the actual auction." At the auction itself, there is no auctioneering cry. Instead, buyers give their bids to auction associates who record the amount of the bid, time of bid and the parcel bid upon. Then, the bid is announced to the auctioneer and recorded on the computer, which gives an instant readout of what the highest combination is-at that point. The highest bids on each parcel are posted on a board near the auctioneer. Working with an auction associate is essential, so the bidder knows where he stands at all times. However, the associates represent only the seller, so trust between bidder and associate is vital, Sturm explains. He notes that the Real Auction method generally brings higher prices to the seller, but not all farm land being offered for sale is suited to the new method of selling. "If we feel a tract really lends itself to Real Auction, we'll tell the seller and suggest using the method. If we don't think Real Auction is the best alternative, we'll suggest other conventional alternatives for selling it." Real Auction was developed by Des Moines, Iowa, realtor Ken Erickson. He has been promoting Real Auction by working on a consulting basis with other realtors. Erickson says Real Auction has had a slow start but is now starting to catch on. "Most people don't know what it is when they first see it, and can't believe it when they do see it; but it does work." Higher land sale prices, in many cases, are the chief advantage of Real Auction, according to Erickson. He says some farms will bring up to 15% more money with Real Auction over private treaty sales. Commissions, for a Real Auction vary, says Sturm, noting that "we have to be competitive, obviously." At a recent Real Auction in Buffalo Lake, Minn., Sturm and his associates Lake, Minn. Sturm and his associates set a record for land prices paid in that area. Says LaVerne Klingensmith, owner of the 120 acre parcel sold: "I think a properly prepared auction like this is the only way to go. Rural people are generally prone to liking auctions, so they feel comfortable bidding. I'm well pleased with the way it turned out." For more details, contact: FARM SHOW Followup, Real Auction, Ken Erickson, Suite 24, 2400 86th St., Des Moines, Iowa 50322 (ph 515 2700159).

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