How Does a Land Auction Work?

You might have seen signs around Northeast Ohio advertising upcoming land auctions. Perhaps you have wondered, “Who buys land at an auction?” or “How do land auctions work?” To start, anyone who has an interest and the financial means to purchase the land can do so at an auction. As for questions about how land auctions work, we have some details to clarify the process:

  • Preparing land for an auction is very similar to the process of preparing a home for auction. The auctioneer will visit the land to evaluate the property. He will take a number of pictures and notes about the property. Combining his knowledge about the land’s size, location, future use potential, and comparable land sales nearby, he will assign a value to the plot of land. This value may or may not be what the land is eventually sold for at auction—the final price could be higher or lower, as the price will be driven by the bidders.

Home Auction Gavel

  • After the land has been valued, the auctioneer begins to plan for and advertise the actual auction. The goal of every auction is similar: To attract the greatest number of prospective buyers as possible on auction day. A high number of prospective buyers leads to an increase in bids, driving up the final price of the land. The auctioneer will prepare a comprehensive marketing plan to advertise the land to buyers who are most likely to be interested.
  • The benefits of selling land at an auction are also similar to the benefits of a property auction. One of the largest advantages is having an audience of serious, qualified prospective buyers. Your auctioneer will spend a great deal of time and effort to attract prospective buyers to the auction, so that on the day of the auction, those who are there will be genuinely interested in potentially buying your land and are qualified and ready to make a bid. This is much easier on the seller than a traditional buying and selling process, as they know on auction day, they are likely to sell their land.

Are you interested in buying or selling land at auction in Northeast Ohio? If so, give the O’Reilly Team a call to learn more.