Three Misleading Things About Iowa Farmland Auctions

In today’s Iowa land business, we know one thing is becoming a trend, land auctions are becoming the norm for high quality tillable farmland in the state of Iowa and across the midwest region. Over the years, land auctions have ramped up across the state of Iowa. Sometimes trends don’t hang around, but if I was to bet on something, I would put my chips down on Iowa land auctions to continue. Over 90 percent of today’s high quality tillable farms are sold via the auction method when it comes to open market sales. Land auctions are the cleanest way to transfer farms in Iowa and throughout the midwest. 

Along the way, Iowa Land Company has talked to clients from inside the state, to outside the state. Whether landowners female, male, and hires land auctions are derived in all different ways when the topic arise while talking with sellers about their Iowa farmland. Here is a quick read to clear up a few myths about land auctions in general.

Myth 1
I want to make sure I get what I’m asking for my farmland so I would rather list it for an asking price instead of sell it on auction for the price found on auction day.

Myth because:

While selling your farmland on auction you do not have to sell your farmland for what the final bidding price brings that day. You, along with Iowa Land Company, can set a reserve price that our team has to meet for the farm to sell on that specific day. A reserve gives you an insurance coverage on your farmland. If we do not meet that price, the farm simply does not sell. Our intentions are to sell your farmland for the highest possible price. We do not want the reserve to be the price we hit and sell your farm as soon as that price is met. We want to strive for higher values in return leads to more return on the overall purchase price.

Myth 2
I am going to sell my farmland on auction and it will not appraise for the purchase price.
Myth because:

Auctions in general are sold in AS IS WHERE IS condition. When farmland is sold at auction all contingencies are lifted. All buyers must be pre-approved before the day of the sale and are aware that the farm is sold in as is where is form. This style of sale is different from a traditional listing. With a traditional listing, assets that are being bought with financing must reach appraised values.

Myth 3
If I sell my farmland on auction AS IS WHERE IS buyers will think I am trying to sell a farm that needs substantial improvements.

Myth because:

AS IS WHERE IS sale methods are the way the auction industry has done sales for centuries. This could not be further from the truth. This method actually protects the seller from any contingency kick back that could surface along the transaction process. The AS IS WHERE IS method is fully disclosed prior to the day of the sale. This sale condition does not affect the purchase value at all. Note that farmland is not not like a house, farmland is a rather simple asset.

Iowa Land Company hopes this can help you along the way of selling your Iowa farmland. We want to let you know that land auctions are a great way to transfer a farm. Whether you are looking to sell the family farm or sell your current investment and move to another piece of dirt, feel free to reach out and see what we have to offer. We enjoy the land business and the clients that are involved within the sale of Iowa farmland. For a free farmland evaluation, contact one of our land agents in your area. We have a full service auction service that can help you sell your asset from start to finish. Do not hesitate; call today. ( 515-962-5048)