Unlike houses that typically have a fixed asking price, farmland is sold in a variety of ways. Selling farmland is many times a once in a lifetime decision and it’s not a skill that you can pick up in an online crash course. We’ve been in the business for decades, and have found the following options to be the most effective ways of connecting the Buyer to the Seller.
Listed Price: This is one of the traditional ways to sell your farmland (similar to the residential housing market). The farmland is advertised with a set asking price and Buyers are able to make an offer to purchase the property. This method works well if the land is located in a less competitive area or during a soft market. It is also an effective means to sell land if there is not a time limitation for the sale to occur.
Oral Bidding: This method of sale typically consists of a written bidding process followed by an in person oral bidding of the top written bidders. This style of sale works well for farmland that will generate significant interest when the land market is strong. As with any bidding strategy, it works best when competition is high.
Online Bidding: In recent years, more farmland sales have moved online with timed online biddings. The benefit of this method is that potential buyers can bid from the comfort of their home or even on their mobile phones. Some bidders also like this method as it is more anonymous than a public bidding format.
Sealed Written Bid: This method typically calls for the potential buyers to make one written bid that is sealed and opened at a designated time. This is one of the easiest types of sales to conduct logistically. It works best when competition for a particular piece of farmland may be limited.
There are other sales formats that can be conducted but these are some of the most common in ND and MN. With each farmland sale we handle, we discuss with the owner the different options and help make the best selection to achieve the best results for our client. Give us a call and set up a meeting so we can discuss with you (and your stakeholders), the best option for your land sale.