7 replies to this topic

[PaMike]

So I came across this auction company in central Pa that is selling quite a few farms in the central PA area (Bedford/Huntington) at auction.  They have a rather different way of doing it, and I was curious if anyone else has seen this done. To be honest their procedure rather irritates me, but I know why they do it.

 

Auction #1

  They come in and split the farm into typically 2 to  4 parcels. They then auction off "choice" of parcels with the high bidder taking 1 or all the parcels. Typically 1 parcel will contain "farm buildings" while the other parcels will be perked for a home/building lot. So they now pit the bidders all against each other because no one knows which the other bidder wants.  They then offer the property as a whole and if someone advances the bidding more than the sum of each individual piece then  they take it..

 

Auction #2

  This auction is 14 parcels, 954 acres total. Same as above. High bidder takes choice, then when they have high bidders on all 14 parcels they will do combinations. You put bid on 2 pieces, if you can advance the bid price you now get it UNLESS, someone wants 3 parcels that contain your parcels. If they can advance the bid then they get them...so forth and so on..

 

Maybe its just me, but it sure seams like a real slick way to squeeze every penny out of something while adding tons of confusion and uncertainty.  Buying high dollar land is stressful enough without games like that...

[somedevildawg]

I hate auctions of any type unless sealed bid....if the sealed bid is a tie then a standard auction between those two is in order. I’ve had that happen before.

[Vol]

PaMike, auctions here have been doing that here for as long as I can remember. The difference here is that if one person buys two parcels, you cannot group them out of just one parcel, the grouping must include both his parcels. This can get very confusing sometimes in an auction that has many parcels.

 

Regards, Mike

[PaMike]

PaMike, auctions here have been doing that here for as long as I can remember. The difference here is that if one person buys two parcels, you cannot group them out of just one parcel, the grouping must include both his parcels. This can get very confusing sometimes in an auction that has many parcels.

 

Regards, Mike

Interesting, It must be a geographic thing. Never heard of that in our area of PA.  I feel like if I was one of the last 2 bidders duking it out I might just walk up to the other bidder and ask what parcel they want... I bet that would make the auctioneers face turn red!

[RockmartGA]

Maybe its just me, but it sure seams like a real slick way to squeeze every penny out of something while adding tons of confusion and uncertainty.  Buying high dollar land is stressful enough without games like that...

 

I've often said if I wanted to sell the farm, I'd go the auction route.  Every land auction I ever attended, which, I admit is not too many, seems like they sold for a premium.

[paoutdoorsman]

Yep, have seen that done in our area already.  Like you said PaMike, a good way to sell at the highest possible value, (and highest commission to the auctioneer).

[endrow]

Does that mean prior to the auction. Someone has surveyed and prepared a sub division and re titled with new deeds for all the parcels. That would be an additional expense.A subdivision here is a real dog and pony show even the local burrow had to sign off and the local planning committe, than the county.Can take a bunch of money and time

[PaMike]

Does that mean prior to the auction. Someone has surveyed and prepared a sub division and re titled with new deeds for all the parcels. That would be an additional expense.A subdivision here is a real dog and pony show even the local burrow had to sign off and the local planning committe, than the county.Can take a bunch of money and time

No, the owner and his father "collected" all the parcels of land over the last 70 years. Some of the parcels were landlocked so they grouped parcels into a tract to sell. So that every tract can be sold and have access to it. Makes it real goofy cause you now have parcels of land that are grouped in very odd ways...

    I know what you mean about subdivision cost and time however in the more rural areas of PA there are very few rules on subdivision and storm water.