For many years when brokers and auctioneers evaluate an appropriate sales strategy for farms and ranches, the auction method of marketing has often been considered to be advantageous. Several considerations (motivation, timeline, market conditions, etc.) help determine if the seller and property are a good candidate for an auction, but the method is widely used in the rural land industry today.
Auctions are specifically designed to accelerate the sales process by leveraging high energy marketing campaigns to drive the market to the property. This acceleration creates a sense of urgency through a published sales date & time that draws the entire process to a close on sale day. Buyers come ready to purchase property and sellers offer them the chance to be the new owner, the Day of Auction.
The auction method is one of the oldest forms of transferring property from one party to another, however what do you do when there is “too much property” for the available buying audience in a given market? For example, what if the auction consists of several thousand acres which will command a high enough price point that it takes the opportunity out of reach for most interested buyers in that area. How do you increase demand?
With this scenario in mind the Multi-Parcel Auction Program was developed and has solved an incredible issue for many land owners that want to sell their property, but also wish to maximize the value of the land being offered. The multi-parcel auction method allows property to be offered in defined individual tracts which are most appealing to the majority of potential buyers in a given marketplace. The bidders can participate on an individual tract, a combination of multiple tracts or the entire property being offered at auction. This process allows “everyone” to participate in the auction event at a level they are comfortable and can afford.
We find that a majority of the time, the property will ultimately sale in one (entire) tract to a specific buyer, however the total purchase price paid for the property has been significantly elevated due to allowing an abundance of participation from bidders which were trying to buy one or just a few tracts. This process is completely inclusive for all and allows for maximum participation from a wide range of prospective buyers.
At MMRC we do not see a downside to the multi-parcel auction process being utilized, as everyone is able to participate with the hope of winning the bid on the property they would like to purchase. The seller wins by realizing a strong market value for their assets, while they maintain control of the sales strategy, terms and conditions throughout the process. We appreciate the opportunity to train and educate both our sellers and the public about the Multi-Parcel Auction Process. MMRC believes this marketing method offers the most fair and impartial opportunity for buyers and sellers, when utilizing the auction method of marketing on premier and high demand farms and ranches. Feel free to call us today for more information about our Multi-Parcel Auction Process.
For more information about Mason & Morse Ranch Company Auction Services, email or give us a call today!
Lead Auctioneer – Mason & Morse Ranch Company