Farmland Auctioneer Talk

January 20, 2022

I have a ton of topics running through my head currently about farm real estate. So here’s a brain dump on this COLD Iowa winter day!

Banana Bread Muffins and Walnuts from Grandma’s Farm

Okay first, I just have to start by sharing that I made banana bread muffins the other night. Since I had ripe bananas. As I was eating one this morning, the muffin reminded me of when I would make banana bread with my mom when I was little and how my grandma would always pick her own walnuts off the farm! There was something so heart warming about this and of course delicious! Does anyone else have memories linked to objects or things like this? It’s crazy how just a muffin can trigger such emotion!

Who Will You Trust To Sell Your Farm?

My broker (and boss) Jason, shared this video with me recently. It really made us think about what makes a person hire a certain land company to sell their farm. Is it the so called performance statistics that draws sellers to hiring a certain auction company or listing agent? Such as number of acres sold, dollars sold, number of clients served, and claiming to be the leading farm real estate auctioneer or agent business?

Or do sellers look for someone who they can trust? Someone who has the qualities, knowledge, and tools to guide them to a successful sale. Even though that auctioneer or agent might not be the “top dog?” Here’s the video for reference:

Farm Real Estate

For someone that started in the farm real estate business just a few years ago, I often compare myself to the “top dogs”. Ones that have sold thousands of acres, millions of dollars, and always seem to be having a new auction. The scary thing though is that the auction business in Iowa is not regulated. It may surprise you but there are no licensing laws to becoming an auctioneer. Anyone in Iowa can wake up and say, “I’d like to be an auctioneer”. However, there are laws and licensing requirements to being a realtor in Iowa.

Are You the Seller the Number One Priority or is the Buyer?

From someone who works in this industry, I’m warning you that there are some high performers that are very un-trustworthy. Just like the video pointed out above. When it comes to selling your most valuable asset, make sure you’re hiring someone who can back up their statistics, provide evidence, and hire someone who’s full interest is helping you as a seller. There are some sneaky deals that have happened with other Iowa land companies. For example, I’ve seen deals where a buyer benefits more from the sale than the seller. This happens more than you think. At DreamDirt though, sellers are our number one priority. We are here to provide you a safe, stress and worry-free farm sale. While achieving the highest result for you farm auction or listing!

Auctioneer School

I’ve taken all the classes and tests to be a salesperson (realtor) in Iowa. Currently, I’m working on becoming a broker as well! This helps serve my auction clients since I have the knowledge of real estate law that many auctioneers who are not licensed real estate agents do not have! In March, I’ll start my second year of CAI (Certified Auctioneer Institute) school. This 3 year program is a pristine designation for auctioneers that want to learn more about the auction industry. Even though it’s not required by law.

Full-time Farm Real Estate Auctioneer and Agent

Along with all the continued education classes I’ve taken, I honestly learn something new every single day by working closely with the DeamDirt team. My full-time job is farm real estate. Many other auctioneers and agents only help clients as a side hustle or part-time job on their free time. I’m involved in farmland transactions, advertising, client calls, customer help, and more all day – every day! One of my first farmland auctions was back home in Dallas County, IA. Just down the road from where I grew up in Adel. The client was a mutual friend. They put a lot of trust into me being a young professional in this industry. Her testimonial still means the world to me!

“Thank you Rachel Hoy. We have been friends with Rachel for several years and don’t let her age fool you, she knows her stuff and is a true professional. We appreciate all her help from start to finish.” – Mandi Orman, Dallas County, IA

You Never Know Who’s Watching You

I received a message the other night from someone I went to Iowa State saying she had inherited land with other co-heirs and had been following me since I started after college in 2018. Honestly, I was a little surprised to see her message since I often don’t get a whole lot of feedback on my facebook posts, blogs, or some videos. She said she had read my most recent blog about 6 easy steps to selling farmland and that made me so excited! I have a ton of great free resources for anyone interested in selling land in Iowa and want to help as much as possible! I love answering questions from my clients and sharing how I can help them through the land seller journey.

I spend a lot of time on TikTok. Probably more than I want to admit but it’s a great place to learn about topics you’re interested in. Lately I’ve been sharing videos about recent farmland sales in Iowa and average per acre prices for the 99 counties in Iowa. I’m trying to provide valuable content that can help someone better understand the farmland selling process and the farmland market in Iowa. With a little entertainment here and there showing my background of growing up on a farm in the mix!

If you’re thinking of selling farmland, now is a great time of year to do so! To get started, fill out my contact form below or click here.

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How to sell the family farm

How To Sell the Family Farm

August 24, 2021

Deciding to sell the family farm is one of the most difficult decision to make. I grew up on our family farm in Iowa that my grandparents bought back in the 1940’s. I enjoyed following my grandparents around doing chores while I was young, riding in tractors, and playing in the dirt. Now that it is just my dad and I running the farm, I could never imagine selling it. I know the emotional connection you have with your family’s farm and how hard this decision can be. However, sometimes it’s the only choice and what’s best for you and your family.

Inheriting a Farm with Multiple Family Members

Being an auctioneer and realtor, I’ve heard time and time again, “our mom/dad just passed away recently and now my brother/sister(s) want to sell the land we inherited”. Most often, the sibling I talk to is the one in charge of the estate or the sibling that has been farming the land and doesn’t want to agree to selling. Not only do I understand what it’s like to grow up on a family farm but also the, “I’m the only sibling that has interest in farming or does all the work” feeling. I was definitely the “tom boy” growing up between my younger sister and I. Even though my sister enjoys hanging out on the farm on the weekends and checking cows, she just doesn’t have as much passion and interest in farming as I do. Which is okay.

How to Decide if You and Your Siblings Should Keep the Family Farm

I know we are not the only siblings this way. It can be frustrating when it comes to deciding wether to keep or sell the family farm you now inherited. Or if you are reading this and deciding whether or not to sell your land or pass it on to your family, here are some secrets and tips.

Having the Important Conversation Now

I wish more families would talk before the passing of a loved one. My grandma got sick fast and passed away quickly, leaving the farm to her only living son, my dad. We know that her and grandpa’s wishes are to keep the farm running. If we ever get into financial troubles then it’s okay to sell a certain part of the farm. My dad and I know keeping the farm is best for us right now and we enjoy having it.

What is your plan?

However, this isn’t always the scenario for other families. I’ve seen siblings fight over what to do with the family farm and tear their relationship apart. Most often because of greed and other conflicts. I know that this is not what their parents would want. This can easily be avoided and save relationships if settled before the land owner passes. No one is promised tomorrow. It’s critical to have the conversation of what will happen with the family farm and have a plan. So what are the options you have for transferring the farm to your kids or other family/friends?

Farmland Transition and Estate Planning

How’d the conversation go with your the rest of your family? Do you know who would continue the farm? Do you know if some of your children could use the money now instead of owning land? Are any of the kids interested in owning the family farm? Are medical bills pilling up? Would you like to enjoy your hard work of farming over the years and retire? Depending on how you answer these questions, more than likely I would suggest selling now or dividing the land to inheritors now.

But you’re only saying this because you’re an auctioneer!

No, I’m saying this because of the drama that comes once you have passed. When there is no clear plan of what happens once your family inherits your land, this causes frustration, anger, and confusion. I see it all the time being an auctioneer. When more than one person inherits the farm, there’s always tension between members and emotional stress. My best advice is to sell your land now or divide the land to have only one owner. Here’s why.

Benefits of Selling Farmland to Avoid Family Conflict

Let’s continue with the scenario of one sibling wanting to keep the farm and continue farming and the other sibling does not and would rather have the money. As the landowner/parent you are faced with the difficult decision of deciding to sell now or let the kids figure it out when they inherit it. To avoid family conflict, I recommend selling now. Money from selling the farm can easily be split up compared to splitting the farm between multiple family members. If you’re worried about your child that still would like to keep the farm, as auctioneers we can help sell land to family members. We can do this by giving family per bid discounts. This allows them to have a fair chance at purchasing the land at a discount.

Dividing Farmland

Or you could divide the land first. Then each sibling can better decide what they want to do with the part they inherit. You could even keep the part of the farm your child who farms currently and is interested in keeping for future years, and allow them to rent it from you. That way you have still have income during retirement years. Selling the farm now could also allow more flexibility of where each kid would like to farm.

The Family Farm is Not Everyone’s Dream

Have your children moved off the family farm and staring their own farmstead across the state? Would they like to re-invest the money into farmland closer to where they live now with a 1031 exchange? Are they trying to start their own business or need the money to cover expenses? Emotions play a great role when selling a family farm. Realistically, money can be split more evenly. Which won’t cause the family to tear each other apart compared to dividing the land. Everyone has their own passions and dreams. It could be very well that the family farm is not someones passion. As I mentioned above, I have the passion for continuing our family farm but my sister does not. However, I know she still deserves to enjoy the benefits to the family farm. She should earn income or money from it just as much as I do.

Continuing the Family Farm

Many of my clients who have inherited the family farm have said that they grew up on the farm in Iowa, but now live in a different state. It’s often difficult to let go of things that meant so much to you and your loved ones. If you don’t have interest in farming and nervous about the idea of selling and letting go, I encourage you to think of all the memories you have of running around on the farm as a young kid and write them down. This often helps my clients realize that memories will continue forever. Even if the farm doesn’t continue on in the family and share these memories down the road. You could also continue the family farm by renting out to someone interested in farming!

Farmland Buyers

As an auctioneer, we can set up an auction for rent instead of selling the farm. It may surprise some people that our most common farmland buyers are still farmers themselves and not investors. If you’re thinking about selling, you could give the chance to a farmer looking to expand his operation. Or help a beginner farmer start his/her dream! The possibilities are endless and I’m here to help you through the process. I will listen to your ideas and wishes.

Helpful Resources for Transferring and Selling Farmland

Fear of what will happen to the family farm doesn’t need to cause you stress. There are several free resources to help you through the process of transferring the family farm. Iowa State University Extension and Outreach has several great resources to learn from for transition and estate planning. Resources can be found here. As someone who also understands grief and farming, I’m always here to answer your call or message. Don’t know where to start? I can make the process easy and comfortable for you. Let me handle all the details and answer your questions. I might be an auctioneer, but more importantly I will be your listening ear through everything. Whether you would like to vent or share memories, you can call me any day!

Rachel Hoy 515-954-8063

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Iowa Farm Lease Termination

How to Terminate Farm Tenant and Lease in Iowa

August 20, 2021

Steps to terminating a farm tenant

If you are thinking of selling farmland in Iowa in the upcoming year, it’s best to terminate your farm tenant now! This is because when the farm trades hands after selling, the new owner will now have rights to the next year’s crop. As long if the farm lease has been terminated properly. You can still sell farmland with a tenant. However, it is typically more appealing to farmland buyers if there is not a tenant the year they take possession of the farm. I can help you structure your land auction to provide rent credits and possession rights to the high bidder if you decide to sell during next year’s crop season with a tenant. Follow these easy steps to terminate a farm tenant in Iowa. If you have any questions email me at rachel@dreamdirt.com.

Be aware of September 1st Deadline!

In Iowa, as a landowner you have to give notice to your farm tenant that you are terminating the lease on or before September 1st of the current year. You can either serve the termination by certified mail or in-person directly to the tenant.

Print this Farm Lease Termination Letter from Iowa State Extension to terminate farm tenant

Click on the photo to open pdf document of this farm tenancy termination notice letter. Fill out respected fields and sign.

Mail the letter to current farm tenant through certified mail

Keep your receipt from post office showing proof that you sent by certified mail

Farm Tenancy will end the following March 1st

If you do not meet the September 1st deadline, the farm lease will automatically re-new under the same conditions and terms of your current lease. Once termination has been given on or before September 1st, the tenant will have tenancy possession till March 1st.

Next steps for selling farmland in Iowa

Are you thinking of selling farmland in Iowa? Fill out my questionnaire and get started on learning how to sell your land today!

I’m interested in learning more!
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Iowa Farmland Auction Results

June 21, 2021

Week of June 14 – 20

Several land auctions in Iowa took place this week! I’m an online auction coordinator for DreamDirt, and we had two auctions this week that were very successful! Our sellers have been extremely happy with the results of our online auctions and we’re looking forward to seeing what the rest of the year brings! I also want to mention that if you own land in Iowa but live out of state, reach out! We meet with out of state land owners all the time over zoom. If you live here in Iowa, I’m more than willing to drive and meet you anywhere or meet over video on zoom as well! I provide free consultations and want to help you get your questions of selling farmland answered! Start today by filling out my questionnaire!

Story County, Iowa Auction

  • 360 acres sold in 3 parcels
  • Near Nevada, IA
  • Virtual live auction online only bidding
  • Near 100% tillable
  • Tract 1
    • 80 acres
    • Sold for $16,100/acre
    • 84.9 CSR2
    • $189.63/CSR2
  • Tract 2
    • 120 acres
    • Sold for $16,100/acre
    • 86.30 CSR2
    • $186.56/CSR2
  • Tract 3
    • 160 acres
    • Sold for $14,500/acre
    • 84.90 CSR2
    • $170.78/CSR2

Chickasaw County, Iowa Land Auction

  • 79 acres
  • Live and online auction held at the Alta Vista Hall in Alta Vista, IA
  • Sold for $8,400/acre
  • 85.5% tillable
  • 75.72 CSR2

Fremont County, Iowa Farmland Auction

  • 186.8 acres
  • Located near Sidney, IA
  • Online Only Auction
  • Sold for $4,750/acre
  • 59.1 CSR2
  • 80% tillable
  • $80.37/CSR2

Winneshiek County, Iowa Farmland Auction

  • 24.80 Acres
  • Online only auction
  • Located near Calmar, IA
  • 80.3% tillable
  • 68.4 CSR2
  • Sold for $10,000/acre
  • $146.20/CSR2

Buena Vista County, Iowa

  • 25.10 acres
  • Online only auction
  • Located near Alta, IA
  • Sold for $13,311/acre
  • 96.4 CSR2
  • $135.37/CSR2
  • 100% tillable

O’Brien County, Iowa Auction

  • 80.15 acres
  • Live auction held at Primghar Golf and Country Club
  • Located near Primghar, IA
  • Sold for $17,200/acre
  • 94.8 CSR2
  • $181.43/CSR2

Poweshiek County, IA Land Auction

  • 150 acres
  • Live auction held at Montezuma Memorial Hall
  • Located in Montezuma, IA
  • 87 CSR2
  • Sold for $15,000/acre
  • $172.41/CSR2

Palo Alto County, IA

  • 236.3 acres
  • Live auction held at Mallard Community Center in Mallard, IA
  • 97% tillable
  • 82 CSR2
  • Sold for $11,800/acre
  • $143.90/CSR2

Greene County, IA

  • 304.80 acres sold in 3 parcels
  • Virtual Live Auction Online only bidding
  • Located near Bagley, IA
  • 83.9 CSR2
  • 92% tillable
  • Tract 1
    • 200 acres
    • Sold for $11,600/acre
    • 81.1 CSR2
    • $143.03/CSR2
  • Tract 2 80 acres
    • Sold for $14,400/acre
    • 88.6 CSR2
    • $162.52/CSR2
  • Tract 3 24.8 acres
    • Sold for $12,200/acre
    • 86.20 CSR2
    • $141.53/CSR2

Carroll County, IA Land Auction

  • Live auction with online bidding held at Carroll American Legion Hale in Carroll, IA
  • Tract 1
    • 91.11 acres
    • Sold for $16,200/acre
    • 95% tillable
    • 84.1 CSR2
    • $192.63/CSR2
  • Tract 2
    • 160 acres with steel machine shed and bin
    • Sold for $15,100/acre
    • 94% tillable
    • 61.4 CSR2
    • $245.92/CSR2

Shelby County, IA Land Auction

  • 420.28 acres sold in Three Tracts
  • Live auction held at Therkildsen Center in Harlan, IA
  • Tract 1
    • 152.20 acres
    • 71.3 CSR2
    • 80% tillable
    • Sold for $8,125/acre
    • $113.96/CSR2
  • Tract 2
    • 150.08 acres
    • 69.6 CSR2
    • 40% tillable
    • Sold for $5,550/acre
    • $79.74/CSR2
  • Tract 3
    • 118 acres CRP
    • Sold for $5,550/acre
    • 65.9 CSR2
    • $84.09/CSR2

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5 Ways to Save Money When Selling Farmland

June 18, 2021

Farmland owners! Are you thinking of selling some farmland real estate and concerned about how much it will cost to sell? You can certainly try to do for sale by owner. I’m not stopping you from trying but there are some dangers that come with FSBO. Instead, try these 5 cost saving tips when choosing to sell by auction or listing! Save your money!

Want to save over half of commission costs? Hire an auctioneer instead of realtor!

I come from an auctioneer and realtor background. I’ll be the first to tell you that hiring auctioneers will save you thousands! Typically, realtors will charge you twice as much in commission costs compared to auctioneers! Realtors will often split commission with a buyers agent so you are paying 2 agents instead of 1.  You are paying for your agent and also the buyers realtor! To compensate for the cost of the additional brokerage coming from the buyer’s side, a listing realtor will typically charge more than double! In-case they need to split the commission 50/50 with buyer’s side. This is why hiring an auctioneer can save you over half of commission!

At DreamDirt Farm and Ranch Real Estate where I work, we don’t offer cooperative brokerage for auctions in most cases. It’s not necessary and does not serve our client well. We are dedicated to finding buyers for your property. Since your auction is open to the public, and with our exceptional marketing and advertising, buyers are able to find your land auction and are welcome to bid! Realtors often ask us to share commissions on our auctions hoping to bring the buyer. However, we’ve found that with our advertising on Zillow and many other aggregation websites the buyers are already exposed to the listing. Buyers agents never serve to improve the outcome of your auction . This helps you save money on commission costs since you are only paying us and not the buyer’s agent. Our commission is typically 1-5% for land auctions, which is considerably low compared to 5-10% realtors charge. 

Choosing an Auction over a Listing for Sale can save you money and time!

If the first money saving cost tip didn’t convince you to market your property by auction, here’s another reason! 

Our auctions typically take 60 days to complete. This includes 30 days of having your auction open for bidding. Followed by 30 days following for closing process with new buyer. We have found 60 days to be extremely effective! The 30 days gives us time to get marketing and advertising out the door. This gives bidders plenty of time to arrange financing. When compared to a listing, auctions create a sense of speed and urgency to get bids in on the property.

Listings don’t have a date attached. This gives buyers more time to dwell on the idea if they want to put an offer in or not. Some buyers like to wait the seller out and wear them down.  Some of our past sellers have even mentioned they have tried selling their land to neighbors. The neighbors said they had interest, but the sellers never got a clear answer or offer right away. Once they hired us to do the auction, then the neighbors saw the sellers were serious about selling! Bids were placed before time ran out for opportunity to purchase neighboring land.

The 60 day time frame is also a huge plus when it comes to costs and saving money!

When selling property, you need to keep in mind that you continue paying taxes, insurance, and maintenance in the time period of selling. With a 60 day auction process, you can save thousands when compared to if your listing took longer than 60 days. Imagine if it took an extra 6-12 months to receive an offer. You’d be done paying on taxes, insurance, and extra costs months ago if you did an auction!  Not only do you save that money, you put it to use earlier on something which contributes to more saving.

One last tip for choosing the auction method, is to have an online only timed auction! Live auctions where bidders come to hear an auctioneer chant are typically more expensive to the seller. This is because you’re incurring more costs for more peoples time, costs of the venue, travel, refreshments for the crowd, printed items, insurance, and set-up fees. Hint: Ask to have an online only auction to save more in commission and fees. 

Choose the right marketing package! Do you need the whole works or just want a little advertising?

This is where you can save some GREEN! Advertising cost add up fast! At DreamDirt we charge no marketing and advertising fees for properties valued over $250,000. If you’re curious of how much your property is worth contact me today! Other companies may charge you for newspaper ads, flyers, drone video, postcards, digital ads, etc.! If a company you are interested in charges for marketing, make sure you understand where exactly your money is being spent. Some of our past sellers who didn’t meet our free advertising offer have decided to have us use photos instead of a video, and digital ad instead of print advertising.

When deciding how much advertising you want done for your farm, also take into consideration the quality of the marketing. Does the company produce appealing flyers and videos? Do they make it all in house or hire a third party? DreamDirt’s advertising is done all in house which makes it more affordable for our sellers!  

Commission costs still too high for you as a seller? 

Have you heard of Buyer’s Premium? It’s a way you can save on commission cost by charging the buyer a percentage on top of his final bid. This helps pay for costs of the auction. The auction serves the buyer and seller both.  With a 4% commission for example, you could pay for 2% and charge the buyer the other 2%. It’s completely up to you as a seller how you offer the property. 

With an auction you set the rules and the buyers bid accordingly. The buyer’s premium may reflect in the amount bidders are willing to bid. Bidders know they’ll owe and additional percentage on top of their bid and some it may not. We see it some in Iowa but other states and areas it’s more common. We just finished this auction with a 2% BP in Buena Vista County, IA and have also sold land in Kansas with Buyers Fee of 5%.

Compare several companies and don’t be afraid to negotiate costs and fees!

Most landowners only get one shot at selling land in their lifetime. My biggest piece of advice is to become educated on the process! Also interview companies you are interested in hiring to sell your most valuable asset! If you’re nervous about paying commission don’t be afraid to negotiate! It may surprise you what we can come up with. I’ve had sellers choose less commission percent but pay for marketing up front. The have set up a commission scale depending on what the farm sells for. Most choose the no risk option of only paying commission once the land is sold. At the end of the day, I want you to be comfortable with hiring me as your auctioneer at a price we can both agree too. I offer a free consultation and proposal for interested sellers to get started with the land selling journey. Start here today!

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Iowa Farmland Sales Update

May 31, 2021

May 27th – May 31st

Let’s wrap up May Iowa farmland sales! According to, the Land Talker Jim Rothermich, there were 2,418 acres auctioned in May 2021 in Iowa which is more than the last two years in May. More Iowa landowners are looking to sell since prices are strong and high! It’s looking like June will bring many land auctions. I’m guessing the next few months will bring record breaking prices for farmland sales. Check out these recently sold farmland auction prices!

Palo Alto County, IA 80.43 acres Farmland Auction

  • City: Ayshire, IA
  • Live and online auction at: Ayshire Community Center
  • 80.48 acres
  • 97.6% tillable
  • Sold for $11,800/acre
  • 79.1 CSR2
  • $149.18/CSR2

Dallas County, Iowa 149.01 Acres Farmland Auction

  • City: Woodward, IA
  • Online Only Auction
  • 149.01 Acres
  • 94% tillable
  • Sold for $12,500/acre
  • 86.60 CSR2
  • $144.34/CSR2

Cherokee County, Iowa 109.33 Acres Farmland Auction

  • City: Cherokee, IA
  • Live Public Auction held at Cherokee Community Center
  • 109.33 acres
  • 100% tillable
  • Sold for $14,300/acre
  • 95 CSR2
  • $150.53/CSR2

Crawford County, IA 515.42 acres Farmland Auction

  • City: Denison, IA
  • Live auction held at Denison Livestock Auction
  • Sold in 5 tracts
    • Tract 1 – 153.34 acres
      • Sold for $14,500/acre
      • 100% tillable
      • 84.7 CSR2
      • $171.19/CSR2
    • Tract 2 – 61.84 acres
      • Sold for $12,000/acre
      • 75% tillable
      • 73.3 CSR2
      • $163.71/CSR2
    • Tract 3A – 79.74 acres
      • Sold for $11,200/acre
      • 91% tillable
      • 67.2 CSR2
      • $166.67/CSR2
    • Tract 3B – 18.51 acres with CRP
      • Sold for $92,000
    • Tract 4 – 114.74 acres
      • Sold for $7,600/acre
      • 84% tillable
      • 70.4 CSR2
      • $107.95/CSR2
    • Tract 5 – 87.25 acres
      • Sold for $6,800/acre
      • 75% tillable
      • 59.7 CSR2
      • $113.90/CSR2

If you’re curious about selling land and want to learn more – fill out my questionnaire to get started today! Recently, I wrote a blog about 5 ways you can save money when selling farmland that you might be interested in reading too!

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Farmland Auction That Was So Quiet You Could Hear Crickets!

April 9, 2021

Awkward Silence During Auction

Have you ever heard an auctioneer chant before? My guess is you have and think it’s amazing to listen too! If you haven’t here’s a video of one of my favorite auctioneers – Iowa native auctioneer, Emily Wears Kroul. Have you ever been to an auction where it was so quiet you could hear crickets though? Probably not, but I have and I was the auctioneer conducting it!

This story gets even better though! One of the sellers of the farm was playing the cricket noises from his phone – talk about awkward silence!

Online Auctioneer

On April 7th, we gathered at the community shelter house in Kiron, IA to sell 115.60 acres of farmland in Crawford County, IA. This wasn’t your typical land auction you might be picturing though. It was an online only auction, but we offered a bidding location to help bidders register to bid on their phone or device. Unlike a live more traditional auction where you would expect a big crowd and auctioneers chanting, the room stayed silent and the bidders watched the auction on their phone and hit the bid button on their own.

Kiron, IA Farmland Auction Results – Rachel Hoy Iowa Land Auctioneer

In a previous blog, I wrote about how I’m an auctioneer but I don’t know how to chant. During the auction, I called out each time a bid was placed and announced the current bid, asking bid price, bidding increment, and the $/CSR2 amount without actually chanting. As the time ticked down, I announced the amount of time left to place one more bid. Our timed online auctions are set to close at 2pm. and are open for about 30 days. Bids could be placed anytime up till April 7th at 2pm.

The seller’s confirmed the sale of the auction and lifted the reserve around 1pm that day. This encouraged bidders to bid even more since they know knew the farm would absolutely sell to the highest bidder. Even though it was set to close at 2pm, extended bidding happened till 2:06pm. This is because when someone bids in the last 2 minutes it extends out for another 2 additional minutes. Giving everyone a fair chance to bid until no more bids have been placed.

Social Pressure During Live Auction

Little did we know, the winning bidder was in the room with us. If it was a live auction, we all would have known the whole time who was bidding and winning. If you put yourself in the shoes of a bidder though, imagine the stress and social pressures you would feel bidding in front of your peers, the seller, banker, etc. This is why our online only auctions work so incredibly well. It takes all the social pressures away allowing the bidder to bid to his/her maximum potential without feeling judged. Their name stays anonymous online and that is why we didn’t know the winning bidder was in the room!

Our team of auction professionals call each person who registers and bids on our land auctions. They all have to accept the terms and conditions that the seller sets in order to participate in the auction. Even though it was surprising the winning bidder was in the room, we had talked to him earlier in the week to make sure he was set-up to bid online. Each bidder had their own account and participated from their own device.

We simply had a bidding location set-up to ensure extra help in-case someone struggled with using the internet. It may surprise you, but we only get a few people that call and ask if they can bid over the phone. Now a days, farmers use technology every day and we have been selling land online for the past 10 years! Online only auctions are the most powerful way to sell your land now and the most cost-efficient!

farmland in Crawford County, IA auction results

Online Only Land Auction Boone County, Iowa

We sold a farm the next day, April 8th in Boone County, IA without having a bidding location or live auction. It was completely online only! The sellers of the 75.99-acre farm near Boxholm, IA also confirmed the sale of the auction prior to 2pm. The auction extended all the way till 2:57pm!

Sold farmland in Boone county, Iowa price

Auctions Create Competition!

Auctions create competition! You can definitely see it when two bidders go back and forth bidding against each other for almost and hour! The seller’s confirmed the farm would sell and trade hands prior to the auction closing. This encouraged the bidders to keep bidding knowing they had a chance of owning the farm.

Are you curious how our online auctions work and what they look like? View the recording of this past auction here.

Free Auction Consultation

If you are thinking about selling land in Iowa, now is a good time! I offer free consultations! Let me help you get started on the right path to selling your most valuable asset. Contact me at 515-954-8063 or email Rachel@DreamDirt.com to request your free consultation.  

Auctioneer Rachel contact at 515-954-8063
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Farmland Auctioneer

March 30, 2021

When I first meet someone and introduce myself as an auctioneer I get some strange looks. My family and friends also have troubles grasping the fact that I’m an Iowa farmland auctioneer. Why is this? When most people hear the word auctioneer, they picture someone chanting. I don’t have the talent to do so or know what words to say in a chant. However, I am an Iowa farmland auctioneer and here’s why.

Definition of an Auctioneer

According to the National Association of Realtors, an auctioneer is,“The person whom the seller engages to direct, conduct, or be responsible for a sale by auction. This person may or may not actually call or cry the auction.”

There are several auctioneer schools around the country that offer different types of classes and designations. World Wide College of Auctioneering in Mason City, IA helps those who are interested in learning how to chant. I know many auctioneers that have been to this school. However, I knew it wouldn’t be the right fit for me. I wanted to learn more about the business side of the auction industry and strategies to best serve my clients.

Jason Smith and Tom Bradley, (brokers, and auctioneers of DreamDirt), both suggested I attend Certified Auctioneers Institute (CAI) School. CAI is hosted by the National Auctioneers Association. It is a three-year program and covers auction methods, improving business skills, staying up-to-date with technology, networking, and becoming a leader.

I couldn’t wait to sign-up and get started on my CAI journey after hearing what all it has to offer!

Certified Auctioneer Institute School

Even though CAI was going to look different this year due to COVID, I still wanted to attend. Typically, the class is held in Bloomington, Indiana at the University of Indiana. With COVID gathering limitations, the NAA decided to host the class virtually. I’ve used Zoom before when meeting with clients. Yet, I didn’t know what to expect from taking this class over a period of 5 days all online. CAI starts on a Sunday and goes through Thursday. By the time Thursday came, I was familiar with everyone in my class! I was able to network even from my own home office!

Using Zoom for Online Class
CAI Class of 2023 meet over Zoom our first year! Here’s a few of my classmates!

During our introductions on Sunday, I quickly realized the majority of my classmates come from an auction family. Which made me sit back and think, do I know anyone in my family that was/is an auctioneer? The answer: no. Wow! I am a first-generation Iowa farmland auctioneer and the only one in my class from Iowa! What also surprised me was out of the 40 auctioneers in my class, there are only 8 of us females! We also represent 17 different states and specialize in selling all different types of assets. My class consist of a wide range of benefit, personal property, commercial real estate, farm machinery, and land auctioneers. We all specialize in selling different assets, but are still helping each other!

Auction Proposal

Besides listening to our speakers, we also worked in groups to present an auction proposal. My group’s assignment was to compose a professional proposal to present to the seller’s of a brewery. Since we were all working over Zoom, we built communication skills and showed our strengths through group work. This group proposal was practice for our individual work which includes submitting an auction proposal by August 1st. A proposal is required in order to advance to CAI Class II next year.

CAI 2022 Benefit Auction

While working on our proposals, we will also be planning to host the CAI 2022 Benefit Auction. I’m the administrator of the executive team and will be handling communications between our committees for the coming year. I’m excited to help coordinate the best benefit auction for next year!

Licensing Requirements of Real Estate Salesperson versus Auctioneer in Iowa

After become a licensed salesperson in Iowa, I found it odd auctioneers in Iowa don’t need a license.

I’ve been in the auction industry since late 2018 and have seen a lack of professional and educated auctioneers. Yes, I’m an auctioneer in Iowa because there is no licensing requirements in this state. Even so, I wanted to become educated and more knowledgeable about auction business. This is where CAI school comes into play.

Taking Action!

I decided to enroll in CAI school to help set myself apart from the rest of the industry. Less than 850 professionals currently hold the CAI designation and I want to become one of the elites. I will stay up to date with the best practices in the auction industry, laws, regulations, and conducting business. I’m taking it upon myself to invest into furthering my education in order to protect and best serve my clients

I’m here to help!

Selling farm assets is a very complex process. I suggest hiring a professional who is willing to dedicate their time into becoming the best Iowa farmland auctioneer. I can explain the auction process and guide you along every step of the way. Not just calling for bids and chanting.

Contact me at 515-954-8063 or rachel@dreamdirt.com to get started with a free consultation. Get to know me more my watching this video!

Selling land by online auction
Photo was taken of me after our Live and Online Auction for the Larry Schenkelberg Estate Land Auction consisting of 813 acres in Carroll and Greene County, IA
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Land Auctions vs. Listings

December 15, 2020

So, you’re thinking about selling your land, but not sure if you should have an auction or list the farm.

Selling land is a huge process and you only really get one chance at it. Should I start with an auction first or listing? This decision is important to make sure you get the most money for your land and done correctly the first time. 

From my experience of helping landowners, I would recommend an auction first. Does the word auction scare you? Do you feel that it is a last resort option and your land will sell for cheap? What price should I list my farm at?

I’m going to lay out the key differences between auctions and listings to give you a better idea of why you should not feel nervous about having an auction, and why I think they produce the best results for you. 

How Land Auctions Work

When I was younger, I would picture the word auction as people gathering in a room and eating donuts and drinking coffee while getting ready to raise their hand and bid when the auctioneer started chanting. Today though, I picture auctions differently.

Online Land Auctions

I think of bidders competing against each other bidding to their maximum potential and producing incredible sale results. Not necessarily done in-person. Online land auctions are becoming more popular than ever before! When done correctly they are the most powerful way to sell land. 

Be careful! When deciding what auction company to use, make sure you are choosing someone who has done online auctions for several years. With the world pandemic and the chaos of 2020, several auction companies have switched to online only auctions. Which is totally okay, as long as they understand how to properly conduct online land auctions.

Land Auction Company

Tip – look for a company that has several past sale results from online land auctions, own their own software (don’t use a third-party bidding platform), and have testimonials from previous sellers who have decided to sell their land by online only auction.

I have helped sell thousands of acres online and work with a team of auction professionals who are truly the pioneers of online land auctions. If you are curious how online land auctions work, I can send you a video of what your land auction would look like on our online bidding website!

Whether you decide to have a live in-person auction, or online only auction, these key features apply to both. 

1. Auctions have a set date

Unlike a listing, auctions have a set date and time where bidding will either begin for a live auction or when bidding will end for an online timed auction. This can give you and the bidders an idea of when the farm will sell and create momentum to get bids in. 

I know if I were a seller, I would prefer to know what day my land was going to sell instead of waiting around for an offer to come in for a listing which can take up to several months depending on buyer’s urgency. We all live busy lives, and by setting a certain date and time for your auction you know exactly when you need to be available to watch your auction and accept the bids. Offers for listings are not planned and can create stress if you are planner like me!

2. Let bidders’ price your farm

How much is your farm really worth? What if your listing price was lower than what a bidder would actually pay for it? When you put a price on your farm you are creating a cap of what you are wanting for your land. With an auction, bidders can go beyond the price and can produce results you wouldn’t have even dreamt about! How do you know what others think your land is worth? Maybe they have had an eye on your farm for several years and would pay 2x as much as what you think it’s worth. This is why auctions are the best at determining what your land is really worth and letting bidders determine how much they are willing to give. 

Prime example – I witnessed an acreage consisting of 19 acres and a house sell for $70,000 more than what the sellers thought it was worth and what they would have listed it at. They had no idea bidders were willing to go that high. Iif they did a listing, they would have shorted themselves $70,000! I don’t know about you but that’s a lot of money! The sellers were extremely happy with this online land auction that I helped coordinate. 

Auction Ladder

They way auctions work is similar to climbing a ladder. You start low and work your way up. Every time someone bids the next person has to be higher – next step on the ladder. Bidders can only work up and never back down to $0 which can happen with listings. Listings, a buyer can offer a price anywhere on the ladder and other buyers have no idea if they have to be higher or if they can submit a lower offer. If you as a seller decided to reject an offer on your listing – you start back at $0 until someone comes in with another offer. 

You also have the right to accept or reject the last bid on your land auction and to confirm the sale. This is another hefty topic though, and I wrote a separate blog dedicated to this topic, “5 Secrets to Setting an Auction Reserve”.  

3. Terms and Conditions of Auctions

One of my favorite parts of auction is – sellers get to set the terms and conditions.  You decide everything from how much earnest money is due, the closing date, auction date, selling as-is where-is, possession of the farm, and more! With a listing, buyers can present all of the terms and conditions and often have contingencies attached that you either have to accept, reject, or counter offer as a seller. An auction lays it all out on the table of what you are willing to accept from a bidder. You make the rules. 

Terms and conditions are extremely important and protect you as a seller. Experienced auctioneers like myself, understand what needs to be included, and how to tailor set terms and conditions to your land. 

4. What if no one bids on your auction?

It’s highly unlikely no one will bid. If for some reason you don’t agree to the highest bid on auction day, I ask my sellers to move into a 60-day listing to achieve the price you are looking for. This is why having an auction before a listing is critical. Remember how I said auction dates create bidder momentum? We now have a better understanding of how the rest of the world sees your land and who is interested.

Negotiating with Bidders

Even if no one bids, or the last bid is too low for you to accept, I now have a list of people who have expressed interest and have called with questions. It’s my job to work for you, and reach out to those who had sparked interest. I will continue to negotiate with potential buyers to reach a sold price. 

The majority of farmland I have helped sell doesn’t reach this point. Sellers often confirm the sale of their auction even before bidding ends. The farm trades hands to the highest bidder on auction day. There are secrets to how this works in your favor to achieve top prices. You can read more in my blog, “5 Secretes to Setting and Auction Reserve”. 

How Land Listings Work

What do you picture when you hear the word listing? Is it different than the word auction?

I bet you are imaging driving by a For Sale sign in the yard with a number to call or seeing a piece of land on a website with a price listed. 

1. Choose a Licensed Real Estate Land Agent

If you read, How Land Auctions Work, you should have an idea of why I recommend choosing to have an auction versus a listing. I do want to mention some of my past sellers have used a listing. I’m licensed to do so in Iowa. Be careful – some auctioneers are not licensed real estate agents and don’t have the ability to sell your land by listing! 

2. Who Buys Listings?

The buyer pool who most likely is interested in seeing listings, is investors and 1031 exchange buyers. Now this doesn’t mean they don’t bid on farmland auctions. Some investors calculate their return and cap rates based on the listing price and what they are willing to offer. 

3. Record Breaking Results!

Something to look at is what land has been selling for in the county your farm is located in. Are auctions producing the best results or listings? It’s rare you will see record breaking results from listings – they are simply set by auctions. 

4. Why it’s not a good idea to have a listing first 

Many sellers believe they can list the farm on the market for a few months to see how it does. Then switch to an auction. By listing land first, you price the farm and people will bid with that figure in mind creating undesirable results for your auction. By selling at auction first, bidders are allowed to truly discover the fair market value of your land with no preconceived notions. 

Choosing a land auctioneer or farm real estate agent 

Once you have decided the route you want to take, reach out to several auctioneers or real estate agents and get to know them. Still not sure if you should have an auction or listing? Schedule a free consultation with me! Being a land auctioneer and land real estate agent in Iowa, I can help answer any questions you have about either method. 

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5 Benefits to Having an Online Land Auction

November 22, 2020

Yes! Land is sold online and is safe, powerful, and real! Online land auctions have many benefits when compared to a traditional live (in-person) auction for both bidders and sellers!

I’m an online auctioneer and land broker with DreamDirt Farm and Ranch Real Estate, LLC. We have been doing online land auctions for about 10 years now! DreamDirt was the pioneer of moving land auctions online. Unlike other real estate and auction companies who are just now adding online bidding to their services. 

Yes! We still conduct traditional live auctions; however, there are so many benefits for you as a seller if you decide to sell online only. Here’s why:

1. Place bids and view the auction from anywhere!

Instead of showing up to a community building, church, or office on auction day, bidders and sellers can view the auction from their phone, laptop, tablet. Anywhere at any time!

A live auction is set for a particular day and time. With an online auction, the bidding is open for roughly 30-45 days and bidding can happen at any time up until the time runs out. 

Imagine bidding on a farm while watching your kids’ sports game, or sitting at home from the comfort of your couch. This is so helpful to bidders and in the end benefits you as a seller since it doesn’t limit a buyer to taking time out of their day to show up on auction day in-person to raise their hand and bid.

Online auctions are the safest way for people to bid and sellers to watch auctions. This keeps everyone healthy, and off the roads during winter weather when farmland in Iowa is commonly sold. If you are an absentee landowner this is a great way for you to still be a part of your auction. I enjoy being on the phone or video call with my sellers the last half hour of their online auction to answer any questions they have and seeing their reaction when the bids come in online!

2. Mitigate Social Pressures

Picture this – you are a farmer walking in to the live bidding location, you see other neighboring farmers, your banker, the family members of the farm, tenant, and other people you are around every day. The friction and stress you would feel I would imagine would be very uncomfortable. Would you be nervous bidding against a tenant or family member? Would you bid to your full potential? Probably not. 

As an online auctioneer, I work for you as the seller. When you decide to use an online auction, you take away those social pressures’ bidders would face in a room full of people. Instead, your online land auction can help you achieve top dollar because bidders often say they can’t quit hitting the bid button since names remain anonymous and they feel more comfortable bidding from their home by themselves without the pressure of others watching.

3. Reduced Fees and Commission

Online land auctions can help sellers save money on commission compared to traditional live auctions. You will be able to save money by not paying for a venue, refreshments, printed material, ring man labor, and/or travel expenses for the auction company. When comparing land auction companies, ask what they charge for both live or online auctions. Be aware of any hidden fees for traditional live auctions some companies might hide!

4. Speed and Urgency

Some might claim a live auction creates an up-beat atmosphere that bidders actually enjoy more. I disagree with this especially due to the social pressures they feel which I covered in benefit #2. 

With an online land auction, you can watch the bidding increase as the time ticks down. The online auctions I help conduct are typically are set up so bidding happens over a span of 30-45 days up till auction day, which ends at 2pm during a week day. Many times, bidders want to beat the clock on an online auction and get their high bid in ahead of time which creates the sense of speed and urgency. If a bidder tries to bid the last second, our bidding software extends for 2 more minutes to give everyone a fair chance to bid one more time until the time runs out and no more bids have been placed.

5. Are online bidders real?

You might be wondering if the bidders online are real and the answer is yes! With our online bidding software, I call them as soon as they register to make sure they are approved to bid on your farm! I also still help bidders who don’t use technology, bid over the phone and keep them up to date with the online bids coming in. 

As an online land auctioneer, I understand how bidders react to the time ticking down and when to reduce bidding increments to mimic a live auction. As bidding increase, the bidding increments get smaller to encourage bidders to keep placing bids resulting in powerful sold results. 

Go to bid.dreamdirt.com to see all of our current and past online land auctions. It’s very rare we have a live auction because of the benefits online land auctions provide. Past sellers have really enjoyed the process of having the convince of an online land auction. 

If you’d like to see what your online land auction would like, message or call me today! I can send you a preview link which is private and we can discuss if an online auction is the right option for selling your farm. 

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