Benefits of Selling Farms Publicly
Why Publicly Listed Farms Often Command Higher Sales Prices Than Private Sales
Noah Hopp
Iowa Land Specialist | Associate General Appraiser
When it comes to selling farmland, the method of sale can make a significant difference in the final sale price. One of the most common debates among landowners is whether to list a property publicly or to pursue a private sale. While both avenues have their merits, historical data and market behavior consistently show that farms offered to the public often bring a higher sales price than those sold privately. Here’s why.
Wider Exposure Drives Competition
Publicly listed farms are marketed across multiple channels such as online platforms, broker networks, social media, signage, and more. This widespread visibility attracts a broader pool of potential buyers, ranging from local farmers and investors to national land buyers and ag-focused real estate funds. With more eyes on the property, the chance of multiple interested parties increases, which can drive up the price through competitive bidding or negotiation.
In contrast, private sales are often limited to a small circle of potential buyers including friends, neighbors, or a pre-selected list. While this can lead to a quicker sale, it also significantly reduces the competitive tension that often pushes prices higher.
Transparency Builds Buyer Confidence
Public listings typically come with detailed property information. This can include soil maps, yield history, aerial imagery, zoning details, and sometimes even third-party appraisals. This transparency builds trust and allows potential buyers to make confident, informed offers. When buyers feel secure in the value and condition of a property, they’re more likely to pay top dollar.
Private transactions often lack this level of documentation and openness, which can introduce uncertainty and lower offers as buyers hedge against unknowns.
Professional Representation Makes a Difference
Farms sold publicly are often represented by experienced real estate professionals who understand how to position land for maximum value. These agents use market data, valuation tools, and negotiation strategies to ensure sellers get the best deal possible. They also know how to highlight the unique selling points of a property, whether it’s high-quality soils, irrigation infrastructure, proximity to markets, or future development potential.
In private sales, sellers may forego professional representation or rely on informal arrangements, which can lead to undervaluation and missed opportunities.
Market Timing and Momentum
When a farm hits the open market, it often benefits from the initial “buzz” of a new listing. Buyers who have been waiting for the right piece of land tend to act quickly, especially if inventory is low. This urgency can create upward price pressure.
Private sales, on the other hand, don’t benefit from this sense of momentum. Without the public clock ticking, buyers may feel less pressure to act quickly or offer aggressively.
Access to Financing and Due Diligence Tools
Publicly marketed properties often attract buyers who are already pre-qualified or who have financing relationships in place, making for smoother, faster, and more secure transactions. Lenders also tend to view publicly listed properties more favorably, thanks to their market validation and documented due diligence.
Private buyers may take longer to arrange financing or complete due diligence, which can delay the sale or introduce contingencies that lower the final offer.
Conclusion: Visibility = Value
While private sales can offer convenience and discretion, they often come at the cost of a lower sale price. By contrast, taking a farm to the open market introduces competitive tension, professional marketing, and broader exposure, all of which typically lead to a higher return for the seller.
For landowners looking to maximize the value of their property, the evidence is clear: putting your farm in front of more buyers isn’t just smart, it’s profitable.
Do you want to learn more?
Are you thinking of selling your land and don’t know where to start? Reach out to a local High Point Land Company agent. For more questions regarding land real estate, visit our YouTube Knowledge Center!
Growing up in New Hampton, IA Noah was the youngest of four brothers. Noah took every opportunity he could to spend time outdoors and was very involved in athletics. He attended Iowa State University, where he developed a love for farm ground. Noah married his 7th Grade sweetheart and moved to Cedar Falls, IA where he currently resides. Noah primarily focuses on helping Families handle estate sales and selling row crop ground located in Central Iowa. If you are looking to buy or sell farmland in Central Iowa or would like more information about the current market conditions, Noah looks forward to helping you reach your goals.
