| commissioner - 1/27/2008 17:05
alway wondered how an auction company worked on a large land sell, are they by percentage,and what do they do for all that money in a short time. thanks, dont anwser if its to personal of a question.
commissioner,
1. They advertise auction on their web site
2. They advertise auction via magazines, brochures
3. They visit prospective buyers before auction
4. They put-up auction and tract signs
5. They auction the land
6. They help with legal aspects before auction to avoid problems for all
7. They have "contacts" which can (may not) result in top buyers. My major reason for hiring them.
Thought they could locate 1031 exchange buyers much better than I. Still think that. I know that
very often 1031 buyers will pay much more than most farmers.
Would I sell the land myself if could do over again? Probably.
Was buyer a "1031 guy?" Don't know. Maybe. Will know soon since he will farm the sold land and also land not sold at auction.
I chose to offer farming unsold land to buyer as a "motivator." I think it was a good one.
They charge a 6% fee. With our auction there was also a 3% buyer's premium the buyer had to pay on top of land price. The 3% was a commission to be paid to a participating broker who brings in the buyer. Since this did not happen auction company got 1.5% and we got the remaining 1.5% of this buyer's premium.
Appears to me auction companies might be in it for the money? Well, why not? They force no one to participate. Everyone, including the buyer, is in it for the money. No apologies needed.
Don |
Had our Land Auction yesterday
