Selling farmland can be a significant decision. The right partner can help ensure you get top dollar for your land and make the process as smooth as possible. Here are four tips for choosing the right partner from Kyle Worner, Senior Associate at Murray Wise Associates (MWA).
1. Choose experienced professionals
Farmland auctions are distinct from other types of auctions. Partners for land auctions should be able to estimate the potential value based on current crop markets, the farm classification and the value to local buyers.
An experienced professional should come to the table with this knowledge, Worner said. For example, MWA auctioned thousands of acres last year alone, which helps give both sellers and buyers a realistic outlook.
“We understand the market well,” Worner explained. “We have a great depth of knowledge in agriculture and can help sellers who are less familiar with farming understand the potential value and market price for their assets. I personally focus on Illinois farmland and spend each day meeting with both land sellers and potential buyers to find opportunities for both groups.”
2. Get an honest analysis
Setting a fair market price for farmland is one of the most crucial aspects of auction preparation. Not all farmland is priced the same. Excellent and good quality farmland has been more insulated from declines in land prices, according to a survey conducted by the University of Illinois.
“I always give an honest and fair representation of what I think the farm is worth in the current market,” Worner said. “I am confident we can get the best deal because our company helps auction a large number of acres. It really allows us to develop relationships with potential buyers of all kinds.”
3. Pick a partner with relationships
Land doesn’t sell itself. Marketing is important even for land! More bidders will result in a more competitive bidding process. Potential buyers must be aware of the purchase opportunity and have sufficient time to explore financing options. MWA begins marketing six to eight weeks prior to the farmland auction.
“We use every avenue available to make sure everyone knows about an upcoming auction,” Worner said. “We use signs on the land itself, notices on websites, mailers, e-mails and personal calls to our list of thousands of potential buyers. Plus, we have relationships with different fund managers and even specific farmers in the area that may be interested in purchasing the land.”
A partner with deep relationships in the community is particularly important when auctioning inherited farmland. In these cases, landowners might not have ties to potential buyers. The right auction partner can help make those connections — which helps result in the best possible price.
4. Select a hybrid farmland auction
Online auctions have been increasingly popular during the past five years. Yet, Worner said that in-person auctions are still a great way to get potential buyers together. The best method is to choose a hybrid model.
“We feel like the best way is a hybrid model that includes both in-person and online options because we can get the best of both worlds,” Worner said. “Online provides confidentiality, anonymity and easy access because there’s no travel required.”
Farmland may be one of the largest assets you own. The right auction partner has experience in the region and carries a reputation for success.
Discover how MWA can help you make the right decision for your farmland at murraywiseassociates.com/contact.