Remodel, No-Sales, & Reserves
It has been an interesting week. We are currently bringing our office out of the 80’s and into 2017. New lights, wall coverings, new kitchen, and more. I spent last Friday from 7:00 AM to 6:00 PM, on a ladder. I had a lot of aches on Saturday, but back on the ladder that day as well. Trying to make it more comfortable and relaxing for our customers when they come to our office. We welcome you to stop by and see the progress, or come see it when it's all done.
I read an interesting article this week on no-sales. This usually happens when a reserve is established on a property and if the property does not attain that price, the property does not have to be sold. Unfortunately , when a no-sale occurs, no one wins. The seller does not get a farm sold, the buyer does not get a farm bought, and the agent does not get a sale.
An auction with a reserve can work very well. I strongly feel that it is the agent's job to educate the sellers on what their property is really worth and not what they read in the paper, hear on the news, or what is being said at the local coop or implement store. The buyers already know what the farm is worth. We have the most educated buyers of farm real estate that we have ever had. An agent needs to do research and inform the sellers what the market is doing, what buyers are looking for, how the buyers may see the sellers' farm, and numbers to support what the agent and the buyers feel the farm is worth. Too many agents give the sellers no information and walk into a recess at an auction and say “Do you want to sell your farm or not?” The sellers need numbers such as total sales price, dollars per CSR point, hits on the website, etc. If you are thinking of selling your farm, we can go through those numbers, get you some realistic information as to the value of your farm, and why a reserve auction could work for you. We have over a 98% success rate over the past 5 years on reserve auctions. Have a great week!