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.

Read More >>

An Inheritance is a Gift Not an Entitlement

January 7, 2022

While cleaning out our office desk at the farm, I came across a piece of paper with my grandma’s handwriting on it saying, “An inheritance is a gift, not an entitlement.”

I’ve been thinking all week about that phrase and how I can apply it to my own life. Being a farmland auctioneer and land agent, time and time again I’ve seen the greatest number of tears, arguments, and confusion come from inheriting parent’s personal possessions and property. Especially when inheriting the family farm with siblings and family members.

Inheriting the Family Farm

My Grandma Hoy passed away in December of 2020. My father inherited the family farm since he is the only survivor (besides my sister, half-brother, and I). Even though there were no fights over settling her estate due to only going to one heir, I can’t help but think what it would’ve been like if my dad’s brother was still alive. It makes me sad when I see families torn apart after their parents pass due to fighting over their inheritance gifts. It may surprise you but it happens more often than you think! Especially if there is already tension between siblings.

I’m extremely lucky and grateful for having a family farm! In 1944,mMy great-grandpa Ed bought our farm in Redfield, IA. My family has worked hard to keep it in the family ever since. My grandpa Hoy was the youngest of his siblings. After returning back from serving fro our country, my great-grandpa sold the farm to him. In 1958, my grandparents got married and two years later had my dad – a baby boomer. In 1964, is when my uncle was born but he passed away when he was 20.

I’ve seen my dad and grandparents work 24/7 on our farm. I can’t help but think what my life would’ve been like if I didn’t grow up as a farm kid. Agriculture has always been a big part of my life and my dream is to keep the family farm going. From the disputes I’ve seen between co-heirs, it makes me nervous for what will happen (God willing) when the farm is passed on to my younger sister, half-brother, and I. We all get along so extremely well currently! I don’t think the farm would ever tear us apart, but it’s always good to talk to one another about what will happen and Dad’s wishes for us.

Inheriting the Farm with Siblings

How to sell the family farm

Between my siblings, I’m the most involved on the farm. My half-brother lives in North Carolina with his family and my sister doesn’t have the passion like I do for livestock and agriculture – which is okay! However, I do want them to enjoy the family farm and inheritance just as much as me without any fights. My half-brother and I often talk now about how we will do anything to keep the farm going. He loves riding dirt bikes, hunting, and having a place to escape and be free. This all makes my worries of ever fighting over the farm low.

Continuing the Family Farm After Inheritance

We are in the process of making sure Dad’s will is detailed. It will describe the roles and responsibilities of my siblings and I’s part of the farm after he passes. This will ensure the family farm continues and how we will receive his inheritance.

Talking about wills and what will happen after your parents’ pass is no one’s idea of fun. However, a well-planned, well-executed will can prevent family conflicts after a loved one passes. Again, FAMILY FEUDS OVER INHERITANCE HAPPENS MORE OFTEN THAN YOU’D LIKE TO SEE!

For many, it is not all about the money. Some are okay with having memories of their parent’s belongings. Others will argue over china sets, photo albums, tractors, and more. These fights are ugly and can split families forever unfortunately. You don’t think it will happen to your family and loved ones until it comes down to deciding who gets what and greed that sets in.

Arguments over inherited items and property can last for well over a year. I’ve seen this first hand as a farm real estate agent and auctioneer. Many of the fights are not over the items and land itself but working out old issues with each other and sibling rivalries.

You can easily picture siblings say things like “sibling a has always walked all over us” or “sibling b has always gotten the better deal”. It’s so expensive to fight these family disputes over family possession in court. Some people wind up spending MORE on legal fees than the estate is even worth.

Farm Estate Planning

Dying without a will or with a poorly drawn will can produce some truly awful results for your family. Even worse, your money and property can wind up in the wrong hands or in unexpected hands. How can you avoid these difficulties? I recommend hiring an experienced estate attorney to draft a comprehensive will. Iowa State University also has great resources for estate planning which can be found here.

Aging parents should ask their children what things they want most. Then make a hand written addendum to the will, bequeathing the most financially or sentimentally valuable items to specific individuals. Heirs might not get exactly what they want, but allowing people to speak their piece goes a long way towards PRESERVING family ties after the surviving parent passes away.

An inheritance is a gift not an entitlement. It’s not something you should take for granted. Those who do, can get themselves into deep financial trouble and cause long term family fights. Wills, lawyers, and deceased parents do not shatter family bonds. Survivors do or don’t depending on which they value more their brothers and sister or dollars and property.  

Inheritance Problems with Farmland

If you’re struggling with co-heirs over inherited farm real estate, reach out. I understand the situations you might be in and can provide some relief. I also provide tips on how to sell the family farm. If that is your goal and wishes you can read more here. Feel free to contact me with questions by emailing me at Rachel@DreamDirt.com or call me at 515-954-8063.

Read More >>

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
Read More >>

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. 

Read More >>

5 Secrets to Setting an Auction Reserve

November 22, 2020

I understand you don’t want to give your land away, and I have a solution! A reserve land auction is where you as a seller set a minimum price where you feel comfortable selling your land to the highest bidder. You also have the right to reject or accept the highest bid unlike an absolute auction where you would have to sell regardless of the price. Reserve auctions are more traditional, and protect you as a seller! Here are a few secrets you should know when it comes to setting your auction reserve price. 

1. Talk to an Auction Professional First

“What do you think my land is worth?” Is one of the most common questions I receive when landowners call me. When you first start thinking about having a land auction, this is a great question to ask a land agent or auctioneer. I look at what the land market is doing daily, and can educate you on what I think your land is worth. If you don’t have a price already in mind, this will guide you on setting a reserve price. 

2. Reserve price = Expected Value x 75%

So, you have a good idea of what your land is worth now. The best advice I can give you next is to take 75% of the value to calculate your reserve price. 

Why not 100%? Here’s the secret. You might be feeling uneasy about your reserve price from my calculation, but this is key for bidder momentum and achieving maximum results.   

3. Announcing, “Farm will Trade Hands”

Have you ever bid on an item and wondered if you were actually going to get it? This is how bidders often feel during a reserve land auction. Farmers, investors, and other buyers understand majority of farmland is sold with a reserve. 

Your reserve price should really stay between you and your auctioneer – no one else (especially neighbors, friends, and family members) until the bids have reached your reserve price during the auction. It’s at this point I like to confirm with you as a seller that you are willing to confirm the sale of the auction and the farm will trade hands to the highest bidder. 

This creates bidder momentum. Typically, bidders will feel more relieved and react by placing more bids after you make the announcement since they know if they are the high bidder, they will get the farm which creates competition. The next few bids that are placed are how we achieve the expected value or more!

The lump in your throat feeling will slowly start to go away as you watch the next few bids be placed and continue to climb. 

4. Accepting or Rejecting the Last Bid

I want to make it clear – you have total control of your auction. Don’t worry. With a reserve auction, you have time to accept or reject the highest bid and confirm the sale even after the auction is complete. I’ve had sellers include in the terms and conditions of their auction that they have up to 4 hours or even 24 hours after the auction to accept or reject the highest bid. Although not as common as secret #3, it’s still a safe way for you to sell land stress-free. 

5. Absolute vs. Reserve

There are two different ways to sell your land by auction – absolute or reserve. I’ve talked a lot about setting an auction reserve, but I want you to be aware of how absolute auctions work. 

No matter what, if you have an absolute auction your farm will sell to the highest bidder regardless of price which can come with risks. This could be dangerous if only one bidder shows up to your land auction and there’s no competition to raise the price. 

I’m thinking worst case scenario though, and it would be very unlikely for a bidder to walk away owning farmland for $1. Remember how I said bidders appreciate knowing they can own the land if they are the high bidder in secret #3? The word absolute is powerful and similar to announcing confirming the sale of your auction. 

I would recommend having an absolute auction only in very unique situations. For example, I helped conduct an auction where all proceeds were being donated regardless of price. It was an absolute auction in October with 10 tracts of farmland that reached $11,400/acre on multiple tracts! 

Having a land auction shouldn’t be a scary or a stressful situation. I protect my sellers by letting you determine what price you are willing to sell your land for. I’m here to give you guidance and advice but at the end of the day you have to make the decision what price you are comfortable with. Let’s get started today with a free market analysis of your farm!

Read More >>