MULTI-PARCEL BIDDING PROCEDURES
- All bidders must register with the auction company and obtain a bidder’s number acknowledging receipt of a Bidder’s Information Packet.
- Parcels are described in the Bidder’s Information Packet.
- Parcels will be offered individually, and then offered as combinations. A combination is any bid with 2 or more parcels.
- After the individual round, any bidder can bid on any individual parcel, or combination of parcels at anytime.
- All bids will remain active, or live, until the bidding is complete and the AUCTIONEER closes the bidding and or announces the farm sold. Bids are compiled on laptop computers using the JBS Multi Parcel Software System. Ring personal or auctioneers can provide instantaneous information as to the combinations, prices or possibilities of bids when asked.
- ROUND ONE – INDIVIDUAL PARCELS
Individual parcels offered resulting in a bid on all individual parcels. All bids will remain live until the auction bidding is closed
- ROUND TWO – COMBINATION BIDS
Combination bids are open to all bidders, and must be on 2 or more parcels. Bids will be taken on any combination of parcels, AND raises on the individual parcels by anyone who decides to bid. All bids will remain live until the auctioneer closes the bidding.
- BID INCREMENTS
Bidding will be “BY THE TOTAL DOLLAR”. Acreage Estimates will be posted, and if a new survey is required, purchasers will pay for actual acres purchased, with a plus or minus allowance of .25 of an acre. Minimum bid increments will be $1000 per tract. In the remote possibility of a tied combination bid, the auctioneer will be the sole determent as to the accepted bid.
Kramer & Kramer’s staff will continuously post all bids on the following boards, which can be viewed by all bidders
- Individual Board – Shows current best bid on each individual parcel.
- Combination Boards – Shows current best bid on each group of parcels that have been combined into one bid.
- Set Boards – Usually three to five boards marked numerically showing the best “sets of bids”. The best “sets of bids” is made up of the highest individual bids and combination bids. One board will clearly be shown as the “leader” group of bids and the other set boards show the runner-up “set of bids.”
In a nutshell, you can bid on any parcel (individual bids), any groups of parcels (combination bids), or the entire farm, at anytime. A Multi-Parcel Auction does not eliminate a portion of the market. The market will determine which option produces the best combination of parcels.
This offering of land can be confusing to buyers. However, it is a progressive technique which allows the Buyers to put parcels together the way the Buyer wants, not just the way a seller or auctioneer decides. It also allows, in some cases, a neighbor to purchase a small tract of land.
What is a Swing Parcel?
A Swing Parcel is a tract of land that cannot be sold as an independent or individual parcel. This could be due to either the parcel being land locked, or being too small in size to meet zoning requirements for acreage minimums. In other words, it cannot sell by itself, only to an adjoining parcel or property owner.
How do I bid on a Swing Parcel?
As a combination. If you are bidding on an adjoining parcel, you can bid on the Swing Parcel “in combination” with the adjoining parcel. However, if you do not want the swing parcel, do not bid on it.
Why have a Swing Parcel?
In some cases, when a Seller offers a farm in parcels, it is difficult to decide just where the property lines should be established. So rather than the Seller dictating where the line is, we create a Swing Parcel, so the Buyer decides which way the parcel is sold.
Does a Swing Parcel create more options?
A Swing Parcel creates more options for the Buyer, and lets the Buyer decide how a certain tract should sell.
What about neighbors?
A Swing Parcel allows a neighbor to add small acreage to their land. In the case of a neighbor, most zoning codes will require the neighbor to encompass the new Swing Parcel into their overall legal description. This usually means the neighbor will have to survey their entire land to add the Swing Parcel.
Creating a Swing Parcel allows that parcel to be purchased by a neighbor, or to the buyer of an adjoining parcel of land.
WHAT YOU, THE BIDDER, CAN EXPECT
Questions which we are asked most frequently are: “What can I expect at the Real Estate Auction?;” followed closely by “How do I bid?;” “What is the property worth?”; plus various questions on terms and conditions.
It is our hope and goal that this Bidder’s Information Packet (BIP) will answer all your questions and also address your concerns. We have attempted to compile much of the necessary information for you.
How do I bid?
It’s easy. Truthfully! Once eye contact is made, your body language will usually tell the auctioneer you are interested in bidding. After that, a simple nod of the head, raising of your arm or bid card number, or any other intentional movement will be fine. Your best advise is to talk to one of the auctioneers prior to the bidding and express your desire to bid.
What is the property worth?
It is worth what a ready, willing and able Buyer with knowledge will pay a willing Seller. Our job is to provide you the information you need to determine how the property compares to other properties that have sold in the area or similar market. Our BIP will show “recent area sales” which provides you, or your banker, the information needed to formulate your own appraisal. Our advise is two-fold: (1) Decide what the property is worth to you, and (2) be sure you have access to the funds, with a loan confirmation if necessary.
What can I expect at a Real Estate Auction?
You can usually expect the property to be sold. Over 95% of our Real Estate Auctions result in sales, therefore be prepared to bid your price.
Multiple parcel real estate auctions are similar, but the bid calling can take one to six hours, with 1-1/2 to 2 hours being normal. We have a special handout on Multi-Parcel Real Estate Auctions.
Our procedures are pretty well established. We will start the real estate auction at the time advertised and spend ten to fifteen minutes going over the Bidder’s Information Packet, and clarifying any possible changes.
Then we have the out calling of the live bids (the auction, if you will), which will last anywhere from five to ten minutes. Usually within fifteen to twenty minutes we are done, then the signing of the documents (all of which are in the BIP), will take a few minutes longer.
Last of all, you can expect to be treated with respect in an honest and ethical manner. The Agency Disclosure Statement describes the legal relationships, but we desire to create or continue a life time relationship. Buying real estate at auction is easy and no different than buying a $2.00 box lot.
Decide what it is worth to you.
Assure you have the adequate funds.
Bid your price!