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Wednesday, 13 July 2016

North Dakota Land Auctions Are Good For Sellers

By Kimberly Smith


Selling your property can be an emotional experience. Sometimes it is just a business deal, but at other times it involves drastic lifestyle changes and much soul searching. At times like these, you not may feel like divesting the real estate on your own and need a professional. You may decide to hire a Realtor to handle the transaction for you, or you might call in someone like a North Dakota land auctions company to help you make the transition.

There is nothing new about auctions. People have been buying and selling using this method for hundreds of years. You may already have attended an auction or two and purchased something for yourself. If so, you will already have some idea of how they work. Just make certain that whichever company you hire has a sterling reputation.

There are many differences between a private treaty sale and a public auction. If you opt for a private sale, you will be required to sign a listing agreement with the selected real estate agent. Most private treaty agreements will tie up your property for at least six months. The realty company will most likely advertise the land on several online sites at no expense to you.

While real estate agencies will offer your property as one tract of land, an auctioneer often advises you to offer to sell large acreages divided into smaller tracts. This often yields a higher return for the seller. As the owner, you will be as involved as you want to be in the process of advertising and marketing your prime investment.

The auction company will work with you and explain exactly how the property will be advertised. There will probably be a plan involving various advertising venues such as signage, internet, brochure, newspaper ads, and radio and television spots. The real estate pros may recommend that you auction your land utilizing an online bidding system, or they may recommend an onsite auction only. They may also discuss using a two pronged approach with both online and onsite bidding.

The addition of a ten percent buyer's premium to the highest and best bid is traditional for most auction transactions. Instead of you paying a commission from the proceeds of the sale, the ten percent will be given to the auctioneers as compensation. The buyer's premium information will be prominently displayed in all advertising and will be announced prior to the auction.

Another decision you, as the property owner, will have to make is whether or not to offer the real estate at absolute auction or with reserve. Absolute means that you will accept the high bid regardless of what it turns out to be. If you decide to sell with reserve, you will have the right to accept or reject any and all bids.

The auction method allows you to find out exactly what your property is worth to the buying public on a given day if you live in Cando, ND or anywhere else. There is no prolonged listing period, and you are not usually responsible for paying any commissions out of your proceeds. It is a quick and easy way to sell property for a fair price.




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