Top 50 Questions about Farmland
If your farm does not meet the reserve price at auction, you still have clear and effective options. These paths provide flexibility while keeping your goals front and center. Most importantly, they allow you to continue working toward a successful sale.
Options After Not Meeting the Reserve
- List the Farm for Sale:
In most cases, sellers choose to move forward by listing the farm immediately after the auction. The listing typically runs for the next six months. At this stage, we already know the interested buyers. Therefore, the process shifts from bidding to direct negotiation. Because buyer interest is established, many farms sell within this timeframe. Meanwhile, we continue working with qualified parties to reach a price that works for everyone involved.
- Opt Out:Alternatively, sellers may decide not to proceed with a post-auction listing. In that case, you can opt out of the agreement entirely. The only requirement is reimbursement of marketing expenses. As a result, the auction company avoids financial loss, and you retain full control over your next steps.
Why Reserves Matter
Reserves play an important role in protecting sellers. They prevent a farm from selling at an unfavorable price. However, not meeting the reserve does not end the opportunity. Instead, it simply opens the door to additional strategies designed to find the right buyer at the right value.
Key Takeaways
- If the reserve isn’t met, the farm can be listed for sale to attract additional offers.
- Sellers who choose to opt out only need to cover marketing expenses.
- Reserves provide a safety net while still allowing flexibility after the auction.
Need help navigating post-auction options? Contact David Whitaker – Iowa Land Guy for personalized guidance and support!
David Whitaker | Iowa Land Guy
