On September 9, Barnes Realty had a public offering (notice that I didn’t call it an auction) on a nice, mostly Tarkio Creek bottom farm northeast of Craig. (see my last Bulletin Board comments). We had a successful outcome for our sellers (generally we are seller’s agents). In the last few years we’ve been doing more and more of these “public offerings” and we’ve been very pleased with the results we’ve achieved. In this era of high demand for farmland we’ve found that this is generally the best way of selling a good farm (please note the word “good”).
I don’t like to use the term “Auction” to describe the service we offer. To me, an auction is a liquidation, a quick disposal of a particular item or tract of real estate. The auctioneer is trying to instill a sense of urgency as he chants. Buyers are under pressure to buy, and buy right now. Lots of times buyers will just set silently by and watch a property sell to someone else without even making a bid because they are uncomfortable with the speed and pressure associated with the auction. That’s not the way we do it.
Here’s what we do:
Before the sale, Barnes Realty will inspect the property and arrive at what we think is a fair market price. We’ll go over that number with the seller and, with their approval, that will be our minimum selling price on the day of the offering.
We advertise the property for sale, present it publicly and ask for and accept offers until everyone who is there (or on the phone) has bid their best price. There is no pressure, no urgency. I’m not an auctioneer and I don’t know how to chant. Wouldn’t if I could. Everybody knows exactly what is going on. Nobody leans on either the seller or the buyer (well, we do lean on the buyers as much as we can during the sale, its our job to get the best possible price for our sellers, you know 🙂 ). We don’t pull bids out of the blue sky and we don’t let bidders raise their own bids either.
When the bidding is done and the best bid meets or exceeds the pre-determined price, we’ve sold a farm. If the minimum price has not been met, we check with the sellers and see what they think. Its their property and they decide, not Barnes Realty. If they don’t want to accept the best bid, ITS NO PROBLEM! We go to right to work selling the property privately, just like we’ve done for the last 30+ years. And we know how to do that better than anyone as far as I’m concerned!
If you’re selling, you get the best of both sales methods without the risk of having a bad day at the sale.
If you are thinking of selling a farm, give Barnes Realty a call and we’ll talk. Confidentially of course.