Spend no time attempting to sell your land on your own. Contact a specialist to assist you with the procedure and relieve you of some of the research and legwork. You can sell your land for the most money this way. Keep in mind that you don’t have to sell conventionally. Land auctions are a great alternative and frequently enable you to sell for more money than you would on the open market. But how do you determine the ideal land auction company to work with? Here are some key considerations:
Value prediction for your land
An auctioneer may give an exaggerated value to close the agreement. But a reputable land auction company Bureau County, will provide a realistic sale estimate after reviewing your land based on recent market trends and their expertise. The auction business must set realistic expectations for the auction for the seller to make decisions that are in their best interest.
Compensation
Is the auction company on your side or not? Your signature on the contract could decide this. As the land seller, you should carefully consider the method of paying the auction company. There are numerous ways to pay auctioneers. Examples include straight commissions, outright asset purchases, guaranteed bases with a split going to the seller and the auctioneer, guaranteed bases with the auctioneer getting anything over that, and flat fee structures.
An established straight commission system should be ideal. This puts the onus on the auction company to deliver the best result for all parties. The auction company has the incentive to put up a lot of effort on behalf of both parties, organize and conduct a professional sale, get the highest offer, and sell every item in the inventory.
Auction expenses
In most land auction contracts, the seller pays all associated costs. If the auction land covers the costs, it will increase commission rates. For instance, the cost of an auction advertisement is often the greatest. The auction company must design a marketing strategy that will best promote the sale while not overspending.
There should be a signed contract outlining all expenses in advance. Examples of typical costs include advertising, labor, legal fees, travel, equipment rentals, security, postage, and printing. A credible auction organization like LandProz real estate LLC will be able to predict all costs based on their prior auction expertise.
Buyer’s premium
The buyer’s premium frequently surprises those who are unfamiliar with auctions. They see it as a shady scheme by the auction corporation to increase its profits. Reputable auction companies will make all disclosures in the auction contract, publicity, and bidder registration.
A typical practice of an auction company is to charge online bidders a higher proportion of the buyer’s premium than those who attend an auction in person. The seller benefits from online and live auction bidders competing on an even playing field.
Wrapping up
Profitable land auctions result in a stronger bottom line for the seller and the auction company.