Riley County, KS, land | May 2008
Executive summary
Client
Ron Clark
Client since
2003
Auction type
Absolute live auction with pre-auction, Internet bidding
Purple Wave contact
Dave Sommers, Purple Wave Realty REALTOR
sommers@purplewave.com
Property
The property consisted of five tracts of rolling hills and pasture ground totaling 356 acres. It sits approximately five miles north of Manhattan and west of Tuttle Creek Reservoir. The tracts ranged from 25 to 100 acres and all had roadside frontage.
Problem
Seller Ron Clark stated that from his experience with auctions, it is hindersome to establish a reserve price; therefore, the property sold absolute.
Clark"s property was inherited, and with no use for the land, he opted to sell it. Clark wanted to:
- exceed the appraised value of the property
- know when the property would sell
Solution
Purple Wave was able to achieve a realized price exceeding the appraised value by:
- selling the property in multiple parcels
- offering the property without reserve
- designing a custom promotional campaign
- saturating the local marketing with advertising
- offering the land in multiple property auction
- actively seeking buyers throughout the process
- offering all-inclusive information about the land
The land was offered in a pooled auction - a sale consisting of multiple properties - offering increased exposure for all properties involved. Four of the five properties sold at prices exceeding what had been expected by the seller. One property, hindered by a reserve price, did not sell.
The great demand for the land, as created by Purple Wave’s strong marketing campaign and tested sales processes, achieved outstanding results for the sale.
Results
The property sold at public auction for a contract price of $1,232,000 - totaling $3,460 per acre. The realized price was a 55 percent increase from the appraised value of $2,000 per acre. All tracts were purchased separately by a single buyer.
"I did not try any other method of selling my land. The land had been appraised at $2,000 per acre. If I had decided to sell it through traditional methods, that’s all we would have gotten, maybe less. By going through auction with the multi-par system, we realized $3,400 per acre. It doesn’t take a rocket scientist to figure out which you would rather have," Clark said.
View the listing and results of this auction in Purple Wave"s
past auctions>
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