What Happens if We Don’t Meet the Reserve at an Auction?

Top 50 Questions about Farmland

If your farm doesn’t meet the reserve price at auction, there are two primary paths forward. These options allow flexibility and ensure the best outcome for the seller.

Options After Not Meeting the Reserve

1. List the Farm for Sale:

   • The farm is listed immediately for the next six months.
   • By this stage, we know the interested buyers and sellers; the focus shifts to negotiating a mutually acceptable price.
   • Most farms sell within this timeframe as we continue working with the parties involved.

2. Opt Out:

   • If you decide not to proceed with a listing or further efforts, you can exit the agreement.
   • The only requirement is to reimburse the marketing expenses, ensuring no financial losses to the auction company.

Why Reserves Matter

• Reserves are designed to protect sellers from accepting an unfavorable price.
• Not meeting the reserve simply means taking additional steps to find the right buyer and price.

Key Takeaways

1. If the reserve isn’t met, the farm can be listed for private sale to attract more offers.
2. Sellers who choose to opt out only need to cover marketing expenses.
3. 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