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Farm auctions are publicly held sales of tracts of land that usually include a house, barn, and silo. A farm is a place where vegetables or animals are raised, usually for eventual sale. It can also refer to the sale of other pieces of land or bodies of water where there are products cultivated; for example, there are honey farms, oyster farms, and tree farms. Farm auctions can include the sale of any of these types of farms.
A farm auction is a hassle-free way of selling a farm, and can be a good option for an owner who is eager to sell his property. Many buyers gather at one time, negating the need for a real estate agent to do months of showings. Buyers benefit from farm auctions, too. They are often able to obtain quality farms for considerably lower prices than the properties would be listed for under the regular real estate market.
A farm seller contacts an auction agency when he wants to put his farm up for auction. The agency then determines a starting bid, typically by hiring an inspector to assess the property and assign a value to it. This helps in setting a minimum bid price that all parties can agree upon.
If the seller finds the bid acceptable, he proceeds with the auction. Paperwork is then drawn up, in which the seller agrees to sell the farm for the highest bid as long as the agreed upon minimum is met. A farm seller is well-advised to have a real estate attorney review all documents before signing.
Sellers should understand that sometimes a property does not go for more than its minimum. Although this is rare, it does happen. A seller should go into it with modest expectations in order to avoid disappointment.
The farm seller is then given the exact date when his farm will be auctioned. He may choose to attend or be kept on notice. The seller is also given some dates when perspective buyers will come to assess the property prior to the auction.
The highest bidder gets the farm on the day of its auction. The buyer and highest bidder complete paperwork and the buyer pays for his purchase. The bidder hands over the property, and the farm auction is complete.
Some farmers opt to unload their property by listing it on an auction website. This is one of the newer and more unconventional ways of proceeding with farm auctions, although it is growing in popularity and usefulness. A property owner can simply list his property on the site by posting information and photographs.
With an online auction, the owner gets to set his minimum auction price. It must be chosen carefully because a low price can end result in a farm that is sold for a fraction of its worth. A minimum auction price that is set too high, however, can leave the property owner paying listing fees without his farm being sold.
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