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Started By
Message
Anyone familiar with land auctions?
Posted on 10/7/21 at 3:39 pm
Posted on 10/7/21 at 3:39 pm
I posted this on the money board, but figured it may be relevant here as well.
Looking at a piece of property to buy. It’s 145 acres with about 90 wooded and 40 acres of pastureland. It also has a 15 acre lake with a boathouse. The only dwelling on the property is a small 1 bedroom house with a detached 3 car garage.
My issue is that it is being sold by auction. The property has been divided into 13 separate tracts. The company running the auction says that the online auction will be for each separate tract, and at the end of the auction, they will open up the bids for specific groupings of tracts, or for the whole farm.
I am at a complete loss at what to do as far as bidding for this. Do I try to bid on each tract, or swing for the fence for the whole thing at the end. Wish it just had a price tag and I could just negotiate it, but obviously, the owner thinks this will pull in more money to separate it. Any advice on how to proceed with this would be helpful.
Looking at a piece of property to buy. It’s 145 acres with about 90 wooded and 40 acres of pastureland. It also has a 15 acre lake with a boathouse. The only dwelling on the property is a small 1 bedroom house with a detached 3 car garage.
My issue is that it is being sold by auction. The property has been divided into 13 separate tracts. The company running the auction says that the online auction will be for each separate tract, and at the end of the auction, they will open up the bids for specific groupings of tracts, or for the whole farm.
I am at a complete loss at what to do as far as bidding for this. Do I try to bid on each tract, or swing for the fence for the whole thing at the end. Wish it just had a price tag and I could just negotiate it, but obviously, the owner thinks this will pull in more money to separate it. Any advice on how to proceed with this would be helpful.
8
Posted on 10/7/21 at 3:51 pm to mach316
quote:
The property has been divided into 13 separate tracts. The company running the auction says that the online auction will be for each separate tract, and at the end of the auction, they will open up the bids for specific groupings of tracts, or for the whole farm.
none of that makes any sense since if the individual tracts are auctioned off first, then they are already gone and belong to the new owners, so you sure as hell cant sell the whole tract after that, if bob and betty lou already bought some of those tracts.
i think what they meant was any tracts left not sold individually will be sold as whole tracts but then again you cant sell the whole farm if you already sold off parts of it. i think you need to get a clearer explanation of exactly how its going to be subdivided and sold, because the way you said it was going to work cant be correct.
This post was edited on 10/7/21 at 3:54 pm
Posted on 10/7/21 at 4:05 pm to keakar
It sounds odd I know, but this is a legit auction company. My fiancé is friends with another auction company owner in the area, and he says that’s how some are done. He says that after all the bidding stops on the individual tracts, they will open for multiple tracts, or the whole thing. I’m assuming that is your chance to raise the price if needed for certain tracts. Obviously it’s easier dealing with and individual buyer as opposed to dealing with multiple buyers. Maybe that is taken into consideration.
Again, I am clueless to this kind of thing, but it’s a beautiful property, and I really want to take a shot at it.
Again, I am clueless to this kind of thing, but it’s a beautiful property, and I really want to take a shot at it.
Posted on 10/7/21 at 4:09 pm to mach316
Bid the entire tract .
But that sounds like an arse backwards way to auction it. Has it been legally partitioned/subdivided, with surveys, etc.?
But that sounds like an arse backwards way to auction it. Has it been legally partitioned/subdivided, with surveys, etc.?
This post was edited on 10/7/21 at 4:18 pm
Posted on 10/7/21 at 4:19 pm to White Bear
Posted on 10/7/21 at 4:23 pm to mach316
Beautiful property, I would call or submit "ask the auctioneer" for clarification. That sounds arse backwards.
Posted on 10/7/21 at 4:31 pm to mach316
It's a way for them to see who offers (and make) the most money.
Posted on 10/7/21 at 4:31 pm to Larry Gooseman
I’ve toured the house with him, couldn’t really see the property due to rain last weekend. Will hopefully see the rest of the property this weekend. I will try to get some clarification on how this works.
Posted on 10/7/21 at 4:31 pm to mach316
quote:
sounds odd I know, but this is a legit auction company. My fiancé is friends with another auction company owner in the area, and he says that’s how some are done. He says that after all the bidding stops on the individual tracts, they will open for multiple tracts, or the whole thing. I’m assuming that is your chance to raise the price if needed for certain tracts. Obviously it’s easier dealing with and individual buyer as opposed to dealing with multiple buyers. Maybe that is taken into consideration.
ok that sounds like they arent selling anything and just accepting bids which can be later outbid by someone wanting the whole tract.
quote:
it’s a beautiful property, and I really want to take a shot at it.
well i would say get a real estate person involved to guide you through the process because there are a thousand little details involved in these things from title searches to back taxes and leans, mineral rights, and all sorts of shite you might get blindsided by after the auction
This post was edited on 10/7/21 at 4:33 pm
Posted on 10/7/21 at 4:38 pm to keakar
What’s funny is my fiancé is a real estate agent, but has zero experience with auctions. The guy she knows that does auctions as well said he would go take a look and give his opinion. He’s familiar with the area. Warned us to look for dump sites etc that may be hidden from view.
Posted on 10/7/21 at 4:43 pm to mach316
quote:
Just don’t bid against me
just grabbed it bruh, you didnt see the "buy it now" button at the bottom?
Posted on 10/7/21 at 4:48 pm to cgrand
invite me fishing!Posted on 10/7/21 at 5:11 pm to mach316
quote:
Warned us to look for dump sites etc that may be hidden from view.
thats for sure, you are responsible for any hazardous waste or hazmat cleanup on the property so if they buried a bunch of asbestos or waste oil out there you could be looking at more in cleanup fees then you paid for it
Posted on 10/7/21 at 5:24 pm to mach316
quote:
1 bedroom house with a detached 3 car garage
I like where the current owners priorities are.
Posted on 10/7/21 at 5:41 pm to mach316
So they auction off the individual tracts then take the total of those auction prices and that is the starting bid for the entire thing?
Posted on 10/7/21 at 5:53 pm to civiltiger07
I think they just take bids on the individual tracts first. Then open it up to multiple tracts together, or the whole farm. I suppose you have to outbid each individual tract to be able to get what tracts you want. Again, I’ve never done this. Frustrating as hell IMO.
The auctioneer guy did say I can make an offer on the whole thing at any time prior to the auction. The landowner can simply accept or reject it.
The auctioneer guy did say I can make an offer on the whole thing at any time prior to the auction. The landowner can simply accept or reject it.
This post was edited on 10/7/21 at 6:09 pm
Posted on 10/7/21 at 8:35 pm to mach316
Yes! They just take bids on the individual tracts first. Then open it up to for bids on multiple tracts combined together, then on the whole farm. The property will sell in the manner that returns the most total dollars and that combination of bids will then be accepted. The property being sub divided into lots has no adverse effect on you if your purchase a combination of lots or the whole package.
Posted on 10/7/21 at 9:32 pm to mach316
I’d guess the bidding of smaller tracts will just inflate the price of the entire tract. I most likely not waste my time with that bullshite.
Posted on 10/8/21 at 5:54 am to mach316
How are you supposed to access all the tracts off the road if they bust it up like that?
I’d say there’s a high likelihood they end up driving the prices up on the individual tracts so the whole thing is not affordable. Seems like a good way to end up with a bunch of new neighbors. But you never know till you try, there’s a chance to catch a deal. Good luck, looks like a nice place.
Also, you gotta love the 10% “buyer’s premium”.
I’d say there’s a high likelihood they end up driving the prices up on the individual tracts so the whole thing is not affordable. Seems like a good way to end up with a bunch of new neighbors. But you never know till you try, there’s a chance to catch a deal. Good luck, looks like a nice place.
Also, you gotta love the 10% “buyer’s premium”.
Posted on 10/8/21 at 6:13 am to mach316
If the seller has already gone to the trouble and expense to legally subdivide and gain approvals then he’s expecting a premium. I doubt fair market value for the large whole tract is going to make him happy.
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