Online Only Auctions, Residential Real Estate, Land
Often times the most profitable method to sell land is by auction. Land auctions provide the seller with more options in offering their property to buyers. At auction, a tract of land can be offered as a whole or divided into sections so that more buyers have the opportunity to bid. For example is you list an 80 acre tract for sale the traditional way, you omit people who want only a part of it to make offers. If you auction the 80 acres it can be offered in the following manner.
1. as a whole
2. 2 forty acre tracts
3. 4 twenty acre tracts
4. 8 ten acre tracts
5. 16 five acre tracts
6. A combination of the above
People wanting smaller tracts will often times pay more per acre than an individual buying the larger tract. At auction you can offer choice of lots and make various combinations of tracts to insure the seller that the most has been bid for their property. Also if a tract is located next to a major road close to a city, the front tracts can be subdivided in to smaller lots and the back of the tract sold in larger units. A land auction can attract farmers, developers, investors and home owners. Only at a land auction can a seller be sure that his tract was offered to buyers in the most profitable way.
If we are selling lots in a subdivision, the auction allows individuals to bid on choice of their lots which causes the price to increase depending on the demand.