# Land Auction



## swmnhay (Jun 13, 2008)

Land auction yesterday.300 acres.200 tillable.100 pasture $4250.

A friend had farmed it for close to 40 yrs.He didn't even know they were going to put it up for auction.He planed on farming it another 3 yrs till retirement.

I didn't go to the sale.It required a pre bid and a $10,000 deposit to attend.

Another neighbor sub leased the pasture and I would bet that goes into a CRP program.

Poorer farm for the area.Needs a lot of tile.It would take 150-200K to do that.


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## TJH (Mar 23, 2014)

I've never heard of having to put up a deposit to attend an auction, probably cuts down on hunting a parking space.


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## Vol (Jul 5, 2009)

I have never heard of requiring a pre-bid just to attend.

Regards, Mike


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## swmnhay (Jun 13, 2008)

It's not common to have a prebid or deposit here either.A management co did the sale from out of the local area.Im sure it kept the looky lews away.It kept some potential bidders away also.

I've seen where a lawyer will do a sale this way also usually without the deposit tho.Put in a written bid and the top 10? Bidders can come to a private auction and raise their bid.


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## stack em up (Mar 7, 2013)

Land auction east of here required a signed letter from bank before a person could get "invited" That land also no-saled.

And no, I was not in attendance.


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## Farmerbrown2 (Sep 25, 2018)

Sound like some money hungry sellers. There are some auction companies around that charge 5 to 10 percent on top of what you bid for auction items. Just turns me off to even go to those auctions


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## endrow (Dec 15, 2011)

Most farm land Auctions around here require a Bank letter to guarantee funds . But then it is just run like a common auction . Sometimes if there is a Big sale of land near by various lending organizations will call me and ask me if I need a letter . I say no those days are behind me.


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## swmnhay (Jun 13, 2008)

I don't recall seeing a land auction that needed a letter of credit from the bank.But they do require a substantial down payment with balance do at closeing.Can't come up with the rest of the money at closeing I would guess you would loose the down payment.

I do have a letter of credit at the livestock auction barn.They started requiring it a few yrs back even tho I had been buying there on a monthly basis for yrs they still needed one.They told me the fat cattle buyers have to wire the money before the cattle leave the yards.


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## endrow (Dec 15, 2011)

5


swmnhay said:


> I don't recall seeing a land auction that needed a letter of credit from the bank.But they do require a substantial down payment with balance do at closeing.Can't come up with the rest of the money at closeing I would guess you would loose the down payment.
> 
> I do have a letter of credit at the livestock auction barn.They started requiring it a few yrs back even tho I had been buying there on a monthly basis for yrs they still needed one.They told me the fat cattle buyers have to wire the money before the cattle leave the yards.


 here's pretty well the industry standard at real estate auction the successful bidder writes a check for 10% of the winning price. For a farm sale in these parts , foremost parts now that's going to be a hundred and twenty thousand and up. When you write the check you almost have to guarantee that those funds are secured by a bank letter or something like that.


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## PaMike (Dec 7, 2013)

Down here I have heard MANY times that the amish guy buying the farm didn't have the needed 10% down, BUT the auctioneer knocks it off to him anyway, and holds the check till the buyer can get things in order. A farm went to auction about 5 years ago here that was predicted to go to 500k. It sold for just over 1 million. The young amish guy didn't have the down money needed but the auctioneer held the check for a couple weeks and the buyer got the down money together...

I know of another farm that sold at auction 12 years ago. The amish guy buying it had the down money but couldn't get financing for the rest of the farm. He ended up asking around his community and another amish guy stepped up and bought it instead. Auctioneer didn't care. Farm when for the same price, just a different name on the other end of the deed....


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## endrow (Dec 15, 2011)

Funny auctiopn story 20 years ago most will remember in this town . Local bank was to sell value at that time half million worth of bank stock . Everyone crowed into the bank . A farmer who thought to be poor , just had a small farm and was more like a handy man and his 16yr old son stood near the front in dirty worn out overalls, and a lady bitched she said there is to many people in the front that are not going to buy they should move to the side room ,so he moved over to the side along with his kid .The stock was to be sold in lots worth approximately $500.. high bidder takes as many as he wants auction is over when all shares are sold .Sale started the old farmers kid stuck his hand threw the side door bid non stop and bought the first lot . The auctioneer asked him how many lots he wanted and the kid said you'll have to ask daddy . At that point some people laughed as the auctioneer suggested to the boy he just take one lot there is a lot more to sell.The kid pushed his way threw the crowd found his dad walked back up to the auctioneer and said will take all of them . And he did .


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## haybaler101 (Nov 30, 2008)

A local farm was up for auction here last month. I think 180 acres. $50,000 to get in the door. No one showed up.


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## swmnhay (Jun 13, 2008)

Copy and pasted this from a local auction flyer.

AUCTION SALE TERMS: All bidders are to register at the auction for a bidding number with driver's license identification. The successful bidder at the conclusion of the auction, will be required to enter into a Purchase Agreement / Contract and shall make a 20% NON-refundable earnest money down-payment the day of the auction. The sale will NOT be contingent upon any buyer financing or any other contingencies of the buyers. All unpaid contract balances shall be due and payable in full on or before March 31, 2017 when clear title will be granted upon closing. The buyer will have possession for 2017 crop year. The buyers shall pay all real estate taxes in 2017 and thereafter. All Properties are being sold "AS IS", with no implied guarantee's or warranties whatsoever, except clear title. Property is being sold subject to any easements including road, drainage, utility or other easements of record. The buyers are solely responsible for all inspections of the properties prior to their purchase and agree that they are purchasing the properties "AS IS". The sale of the land is subject to the seller's approval. Any statements made at the auction may take precedence over any printed information. The seller and auction company reserve the right to offer these properties in any combination they so desire, which may vary from advertising materials.


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## woodland (May 23, 2016)

We are looking at some land coming up at a sale this spring and its 25% down sale day with balance at closing 30 days later. To get approved for financing by the bank requires a loan fee of 0.5% of the principal amount before they look at it. Never bought through an auction and only once through a realtor. Usually here someone stops by out of the blue and you better say yes or else the next stop is the neighbour.


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## deadmoose (Oct 30, 2011)

woodland said:


> We are looking at some land coming up at a sale this spring and its 25% down sale day with balance at closing 30 days later. To get approved for financing by the bank requires a loan fee of 0.5% of the principal amount before they look at it. Never bought through an auction and only once through a realtor. Usually here someone stops by out of the blue and you better say yes or else the next stop is the neighbour.


I recall hearing once the best time to buy land:

When it goes for sale.

You may never see it sell again. Good luck.


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