When it comes to selling land, most landowners are looking for a fast and easy way to sell their property that also nets them the most amount of money possible. While land auctions have been a staple of Midwest land sales for decades, they’ve only recently begun to gain popularity in other parts of the country as more and more landowners recognize the benefits that land auctions can offer.
This article will outline a few different ways that land auctions can benefit landowners looking to sell!
Faster Turnaround Time
One of the largest benefits of land auctions for landowners is the potential for a faster turnaround time compared to a traditional real estate sale. A traditional real estate sale can take months or even years depending on the property, which might not be a feasible timeline depending on the landowner’s circumstances.
Comparatively, a typical auction takes on average between 75-90 days from start to close. Speaking about the accelerated timeline auctions can provide, AR Land Broker Jeramy Stephens stated during his recent appearance on the National Land Podcast, “When you put a property on the market, you have to take time to market it, solicit offers, negotiate, and eventually close the deal. An auction can accelerate that by months and provide [the landowner] with more visibility.”
More Competition Among Buyers
One of the largest reasons that many landowners prefer auctions is the competitive atmosphere that auctions, especially live auctions, can inspire. Stephens spoke to this, stating, “If you’ve ever taken part in a live auction that’s really rolling, it’s exciting! There’s a lot going on, and it’s fun just to watch all the bidders, the auctioneer, and the ringman. It’s an event.”
By gathering a group of qualified buyers together in one room, live auctions have the potential to generate higher returns for landowners given the competition that often arises as multiple serious buyers try to outbid each other for the same property.
More Eyes on Your Property
Land auctions attract a variety of potential buyers from all over, including serious investors and land buyers. This is because simulcast and online auctions allow prospective buyers to participate in the bidding process regardless of their physical location. These options tend to attract buyers from a much larger geographic area and can reach potential buyers who would’ve been otherwise uninterested in the property.
While more eyes and possible bidders and typically a good thing, a good land auction will only admit qualified buyers to the event. These are individuals or investors who have been vetted beforehand to confirm that they are financially capable of making a land purchase that day. This prevents any time-wasting from unqualified buyers just looking around. So not only can an auction get more eyes on a property, but it also ensures that the people looking are serious about buying and don’t waste the landowner’s time.
In conclusion, land auctions are a great opportunity for landowners looking to sell their property with minimal hassle. With the potential for a faster turnaround time, competitive bidding atmosphere, and wider audience reach, auctions provide a fantastic alternative to a traditional real estate sale!
To learn more about whether a land auction is right for your property, contact your local Land Professional today!