Land Auction vs Listing?
There are many factors to consider when deciding if a land auction or traditional listing is the best choice to sell your real estate. The questions we start with before we get into the pros and cons of each sales process are;
1) Is this property going to be sought after by more than one person?
2) Does it currently have an established value? and
3) Does the seller have time to wait?
“A real estate auction can be a very lucrative sales process when executed properly”; says Jacob Hart, Land Auctioneer with High Point Realty and Auction in Decorah, IA. “We often sell property at a much higher price at auction than we would ever traditionally list it at”, says Hart.
The auction process starts with the property being marketed with the seller’s terms established so buyers can set the price based on those terms. Many times, this is easier and favored by buyers due to the level playing field and ease of a take it or leave it transaction without complicating things. When the auction marketing starts the date and location are set for the sale, terms published, and all interested buyers are sent a very nice package of pertinent information. The auction may be a sealed bid, private or public sale depending on what process is best suited for the property and seller’s intentions. When auction day arrives, we start at the opening bid and go up from there.
On traditional listings sellers start with an asking price set at the market value and typically sell there or offers come in below. Land real estate is a very in-depth market and the farms we sell often times have not been sold for many generations. Attempting to put a listing price tag on something that has not been available most times in any buyer or sellers lifetime is a hard thing to do.
An auction also allows the seller to have a definite date when they will have the property sold to move on. An average sale is scheduled 45-60 days out and closes 30 days after the auction. This gives sellers a schedule for planning their next move and may save them taxes, interest, and maintenance at the same time verse waiting 6 plus months to sell their property.
A land auction verse traditional land listing has many benefits for the right property or owner’s situation. If you have questions about a land auction as a sales method for your property. Give one of our offices or land agents a call. They would be happy to give you their honest knowledge about which sales process may be the best to sell your property.
Did you know an IRS Code 1031 Exchange can be used to purchase land?
Land is an income producing piece of real estate in most cases. If you have an apartment complex, rental property, or commercial property that has increased in value it may be a great opportunity to sell and exchange tax deferred into a hunting farm or tillable land investment. The exchange between commercial income producing property and land can be the same, as they can both be viewed as “income producing, non homestead, Real Estate.” Well what about land that doesn’t have any income through buildings, CRP or tillable acres you might ask. Land that doesn’t have any income today may very well have long term income opportunities in timber or other sources and the property doesn’t have to necessarily be income producing at the time to be exchangeable. The 1031 Exchange has long been one of the best opportunities to buy and sell Real Estate tax deferred and the real estate that you own can be enjoyed in many different ways, whether you get enjoyment from fixing a broken pipe or having to hang that darn deer stand is a choice you will have to make for yourself!
– Broker Jacob Hart
Get in Close
The first thing you need to do is locate a gobbler. That means either roosting them the night before, finding them roosted first thing in the morning or finding them in their strut zones glassing. Either way, once you have found them I like to get as close to them as I can before I start calling. It makes it a lot easier to convince a longbeard to commit and come to your calls if you are nearby.
The biggest key to success while turkey hunting is always being mobile. One of the best assets I have in the turkey woods is a good turkey pack. It allows you to set up in seconds with or without a tree while being comfortable and in great shooting position. If you are set up on a tom but they are being stubborn. Don’t be afraid to be quiet for 15-20 minutes and then make a move on them to get closer, or just to add some movement to your call. Even if you move away from the turkey you can still add that movement and end up pulling those stubborn birds in for a shot. If you can’t get that turkey to commit that day, leave them be and don’t push them too much. If you have the luxury of hunting a large tract of land or other property, let that turkey be and go try and find another one that is more active and use that bird as an option another day when he’s feeling more aggressive or possibly not hen’d up.
Don’t Over Call
Once you get the longbeard to start responding to your calls and you hear him getting closer, ease up on your calling. The worst thing you can do is over call. The turkey will be much more likely to hang up out of range and make you (the hen) come to him. Once I know the tom is committed to coming I quit calling, even when he continues to gobble I will rarely call back to make him come looking.
Enjoy the Moment
Once the longbeard is in your effective range, then it’s time to hit him hard with the calls if you can. There is nothing I love more than to get a turkey hammering at 10-20 yards in your face. As long as he’s being calm I like to sit back and enjoy the show they put on. Once you can’t take it any more its time to click the safety off or clip on your release, take aim and take him!
I hope that this quick read will help you this turkey season!
– Minnesota Land Specialist Lucas Mestad
Located in Mower County, Minnesota, this 160 acre parcel is the classic flat, black and square tillable tract. The property has CPI’s in the mid 80’s, drains well and features patterned tile throughout the entirety. The property is located just a few minutes southeast of Blooming Prairie and is located just off of a blacktop road with an access road that goes to the middle of the property for easy access. The property is currently not rented out and is farmed by the owners.
Come on down to Forestville State Park at 5:30 tonight for a field day. We will be learning about “Using Fire for Vegetation Management” which will include topics like comparing a regularly burned woodland with one that has not, evaluating the benefits burning has on local wildlife, and creating a firebreak and understand the permitting process. There will be a light supper served before hand as well!