North Dakota Land Auctions Are Popular With Many Property Owners

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.

Auctions work much differently. You will still be required to sign an auction listing agreement, but most last sixty to ninety days depending on the length of time needed to adequately advertise the property and get it ready for auction. Acreage tracts are often divided into smaller lots in order to bring the highest dollar to the seller. Most of the time, the advertising costs are the seller's responsibility.

For a number of years, many auction companies have instituted an in-house online bidding platforms. Depending on the type of property you are selling, their recommendation may be that you offer the land online. They may also suggest a combination of auctioning online and on the property simultaneously. The logistics will be clearly outlined in all advertising.

It is not unusual for a ten percent buyer's premium to be added to the high bid price in order to obtain the selling price. This is a tool that is very familiar to seasoned auction goers and does not deter them from bidding. By utilizing this technique, you avoid paying any commissions from your proceeds. The buyer's premium goes to the auctioneers at closing to pay their fee. Of course everything is negotiable, and whatever you agree to and put in the listing agreement will be the binding terms of the sale.

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.

Cando, ND residents, as others throughout the United States, buy and sell real estate all of the time. An easy way to divest yourself of property quickly and efficiently is by using the auction method.




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