A farmland auction is a perfect way to pick up farmland at a good price. The starting prices are often lower than the actual property value, and with some luck, you can walk away having saved thousands. You also get to see the competition right there in front of you, and once you win, you get the property in 30 days and there aren’t any oddball waiting processes before closing.
However, they’re a little more complicated than just walking into an auction house and bidding on whatever you want.
Let’s take a look at how farmland auctions work. There are a few specific types of farmland auctions you can learn about at Auction Flippers, but we’re going to stick to the most straightforward auction type; one person winning and claiming ownership of the entire property.
Where They’re Held
Farmland auctions aren’t held at the farms being sold. If there are properties for auction organized by the owner, it will typically be in the hands of an auction house, and you’ll have to go to the auction house’s offices for the auction. If it is being auctioned by the local government after being foreclosed, the auction will be held at a courthouse, usually. You can find listings for all the auctions in your area online.
However, the most efficient way to participate in a farmland auction is via our online bidding system. Every farmland auction we host is conveniently located on our app, and you can make bids online or even from a smartphone.
Photographs and various other bits of information are provided regarding the farmland being auctioned off. You’ll have time to review this information before the auction and usually at the auction.
There isn’t much more you have to do before participating in the auction. While you should review your finances and make sure you’ll be able to fulfill any financing requirements later on, Auction Flippers does not require extensive financial checks and other time-consuming processes like traditional auctions do. You simply have to go through the sign-up process, verify your payment information, and get started.
However, don’t be disheartened if you don’t have as much money as necessary. Auction Flippers offers 100% pre-approval for financing, and there are several other options that can help you win the property you’re looking for.
During the Auction
During the auction, there are just a few points you need to know.
First, there will likely be a starting price set. This is the starting point, and all bids must be higher than it. Also, there will likely be a minimum bid limit. For example, you might only be allowed to bid in multiples of $1000. That’s to prevent nonsensical $1 bidding wars that go on forever.
Our automatic bidding system handles all aspects of the bidding process to create a smooth and efficient auction process for everyone involved.
The post-auction process is fairly simple. You’ll typically pay a $299 technology fee to the auction house. You will also have three options to choose from; direct bank transfer, credit card charge, and Zelle payments. Using Zelle does require a $500 deposit, and the rest of the transaction will be processed after the deposit is finalized.
If you’re still not sure how farmland auctions work, contact us today and we will make sure you know everything before entering one.