Selling a rural property at auction requires a lot of planning and attention to detail, experts in the field suggest.
According to rural sales and marketing specialist with Elders at Dubbo, Richard Gemmell, auctions are considered the most effective way of marketing a property within a given time frame.
“A well considered auction campaign will address timing, market conditions, presentation, advertising, target audience and inspections,” Mr Gemmell said.
Present perfectly
Mr Gemmell said presentation was probably the most important aspect.
“Farm presentation for auction is crucial when it comes to creating a lasting impression”, he said.
“A well presented farm will demonstrate many positive attributes and provide it with every possibility to achieve the best possible outcome”.
This view was supported by northern Australian sales manager for Ruralco Property, Andrew Adcock. who said presentation was the key to any sale and vendors should ensure that elements that appealed to the purchaser were kept neat and tidy.
"If you have any animals on the property, make sure that husbandry is spot on - no fly blown sheep.
"Make sure all the watering points are in good working order," Mr Adcock said.
"Have good maps for the purchaser to understand what they are looking at".
Stick to the facts
Mr Adcock said also that when promoting the virtues of the property, vendors should stick to the facts and not seek to sell its potential.
"There is always a huge cost to a purchaser to realise potential.
"Sell what the qualities of the property are - not what they may be".
Mr Adcock said sellers should also provide the correct information on areas and other details such as fertiliser history of the country and water licences.
Know your market
Both men emphasised the importance of vendors having a close look at the market before setting a reserve price.
"The agent and the vendor should discuss the 'target' price at the start of the process,” Mr Adcock said.
"But unfortunately the vendor and the agent normally differ at this point and the agent does not get the sale because the vendor has an over-inflated idea of value.
"Property is unlike the share market as each property has its own qualities".
Mr Gemmell said that if a farmer wanted to consider pre-auction offers, offers should be communicated to the vendor in writing with clear instructions sought on how they wished to proceed.
He said properties could be sold before, during or after auction depending on the circumstances and the vendor’s instructions to the agent.
Mr Gemmell said timing of an auction was mainly determined by the vendor’s requirements which might involve factors such as seasonal conditions, market trends, economic circumstances, debt and pending retirement.
Mr Adcock said the timing of an auction was normally not a major issue, unless there had been a major catastrophe that had not been foreseen.
However, it was important to avoid election periods because they always caused a lack of activity.
