I was looking at the most recent edition of a regional farm paper. I saw an ad concerning farm real estate which was described as selling in an auction setting. Upon reading the terms the sale certainly was not in the context of a normal auction which would imply the ability to make counter bids. Bids have to be turned in ahead of the "auction" date which would in turn allow a "bidder" to be present upon the day of the "auction." I guess I would have no issue if the seller put their conditions in plain terms. It really sounds like they are seeking sealed bids that would be revealed upon the day that the sale is to take place. The party with the highest bid would be entitled to make the purchase pending seller approval which is listed among the sale terms. Further, the seller retains the right to reject all bids which requires no explanation of itself. It sounds like the whole process here is a big tease with no assurance a bidder has a sure chance to purchase anything.
- Thread starter NY 986
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jeremy in NE
Member
That is common here for real estate. You submit your bid by a certain date and then they take the top 5 or 10 bidders and have them bid against each other in an auction.
Those terms are not unusual, and they are straightforward. Lets interested parties participate, without a crowd of onlookers.
In the 70s, a couple brothers where I grew up submitted bids of "ten dollars per acre more than the highest bid submitted"...they got a few farms that way before auctioneers put a stop to it ahead of time.
In the 70s, a couple brothers where I grew up submitted bids of "ten dollars per acre more than the highest bid submitted"...they got a few farms that way before auctioneers put a stop to it ahead of time.
I went to a couple of auctions here in Michigan something like that, but worse. In one, there were quite a few parcels divided out of a couple of single parcels. Most were nice pieces of 5-10 acres, IIRC. Bidding was normal, with the auctioneer soliciting and accepting bids. People were excited about winning a bid. After all the lots were "sold", the auctioneer then said they'd take bids on COMBINATIONS of lots. :shock: If the combos went for more than what the individual lots brought, bingo, new high bidder for those parcels. It was the most confusing thing with people scrambling to figure out what just happened. Even some people who won a combo package were outbid when someone pieced together a different combo and in one case I recall someone who lost a piece in a combo bid, got it back when someone put a new combo together, then they lost it again in another combo. I swore to never attend one of those again.
Andy Martin
Well-known Member
So I was at a conventional (I thought) auction bidding on 140 acres. I was the high bidder (and would have paid more). The seller was an institution which had inherited the land. At the point I thought I had won the auction the auctioneer said they were stopping the auction. Thanks for coming. I got angry and left. In retrospect i should have asked what they wanted for the land, since they didn't want to auction it. I since learned that most auctions don't have to go to the highest bidder.
tractorguy2
Well-known Member
I've never heard of land auctions conducted that way. The auctions I have been to. The auctioneer starts out high and comes down till he gets a bid and then goes up till no more bids. Just like selling a tractor.
olgentdc
Well-known Member
That is how Beckort here in southern ind sells land ,,.it is confusing ,. in the end everyone gets what they were
willing to pay for. the farm up the road stayed together for one buyer, rather than being hacked up into yuppi
hideaways
willing to pay for. the farm up the road stayed together for one buyer, rather than being hacked up into yuppi
hideaways
That has to be spelled out in the auction add that they will do each individually and then combine to see what brings the highest price. Common and legal if anounced before hand. If it has not been advertised that way and in the opening anouncements then I don't think they could get away with it.
BarnyardEngineering
Well-known Member
- Location
- Rochester, NY
A sealed bid auction is still an auction.
Auctions don't have to be some guy in a cowboy hat sitting in the back of a truck yammering away on a microphone in front of a crowd of people.
Auctions don't have to be some guy in a cowboy hat sitting in the back of a truck yammering away on a microphone in front of a crowd of people.
steve terplak
Member
NY986- if I remember right- you are in the Cobleskill area? Who is the auction house you are talking about?
A sealed bid "auction" is still more out in the open than the way this is being described. It seems to me that in a sealed bid situation all bids get reviewed out in the open on the sale day to know no shenanigans are being pulled such as one bid being discarded. My concern is that there is nothing indicating that a counter bid will be accepted by all parties attending this "auction" with counter bidding making an auction what it is. Otherwise the seller might just as well say "land sale" by invitation only.
I have only been to a few land auctions but I do believe that's the common way of doing it in Mi. Sell it all separate first, then combine it all up as one. They add all the parcels up and then ask for a bid over that amount. If they get a bid it is then sold as one lot. Just like a tractor with a loader or a combine with headers. They take separate bids then combine them and if someone bids a higher price then they sell it all together as one. I have seen on a tractor loader combo where they ask for a combine bid of maybe 10% over the total of the separate prices before they will sell it together.
Andy, that has become the common land 'auction' around here, they hold an auction to discover the price everyone is will to pay, then stop the
auction and negotiate to get another $500 an acre out of someone.
Or, they have a buyer in line, the auction is just using the neighborhood to set the price for the pre arranged buyer.
Doesn't really pay to go to a land auction any more, there are no rules and there is no real 'auction.'
Paul
auction and negotiate to get another $500 an acre out of someone.
Or, they have a buyer in line, the auction is just using the neighborhood to set the price for the pre arranged buyer.
Doesn't really pay to go to a land auction any more, there are no rules and there is no real 'auction.'
Paul
Reading your post, it kind of makes me wonder why you have to show up on any particular day. If you have to send in a bid, they could just let you know if they would sell it at that price.
And if you never hear from them, then your bid was too low or they backed out or whatever.
And if you never hear from them, then your bid was too low or they backed out or whatever.
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