Some auction days go just as planned. This wasn't one of them, and the farm sold anyway. The farm is near Gaylord in Sibley County, about an hour from the Twin Cities and within reach of Mankato.
Here's how we took a 282.95-acre row-crop farm near Gaylord to an online auction in three tracts for sellers who lived out of state, and what I learned that can help other families sell from a distance.
The short version: I represented three sibling sellers, all living out of state, on a 282.95-acre farm near Gaylord in Sibley County. It sold by online auction in three tracts to two buyers and closed on December 30, 2022. I had COVID on auction day and ran my side of the sale from home by phone.
Key takeaways
- Offering a farm in tracts lets more buyers compete. Here, one buyer took two tracts and another took the third.
- An online auction run from a studio with live auctioneers and ring men lets bidders take part from anywhere.
- Out-of-state sellers need clear explanations of how Minnesota does things.
- Read the closing statement carefully. Catching mistakes before closing is part of the job.
The property at a glance
| Location | Near Gaylord, Sibley County, MN |
|---|---|
| Size | 282.95 acres, about 247.2 tillable; the rest is waste and ditches |
| Use | Agricultural row crop, no improvements |
| Sale method | Online auction in three tracts, with live auctioneers and ring men in a studio |
| Result | Two buyers: one bought Tracts 1 and 3 (152 acres), the other bought Tract 2 (80 acres) |
| Closed | December 30, 2022 |
| My role | Listing agent and primary contact for sellers and buyers |
What was the challenge?
The three sellers were siblings, all living out of state. The lead seller had never sold real estate in Minnesota, and Minnesota's process works differently from what he was used to. A lot of my job was explaining how things work here, with references to state statute, so everyone could decide with confidence.
Getting signatures was a project of its own. One sibling signed by email. For another, I drove about four hours each way, roughly four times over the course of the sale, so she could sign in person.
Then came auction day, and I had COVID. Here's how we made sure the sale didn't miss a beat.
How did we approach the sale?
- Getting the farm data together: I collected the FSA records, soils, topography, tile maps and fertility data so buyers had what they needed to bid.
- Documents: I drafted the listing agreement, purchase agreements, disclosures and the sellers' preliminary net proceeds sheets, ordered the title work, and set the schedule for each step.
- Marketing: MLS, our website, LandsofAmerica, Land.com, local newspapers and mailed postcards.
- Tracts: The farm was offered in three tracts so both larger and smaller buyers could compete.
- Auction day: The auctioneers and ring men ran the online auction from a studio. I worked from home and stayed on the phone with the sellers for the whole sale, and my broker helped with buyers on the phone.
Pro tip: If your family is spread across several states, ask early how each person will sign: e-signature, in person or by mail. A plan for signatures keeps the timeline on track.
What was the outcome?
The farm sold in three tracts to two buyers. Neither buyer had an agent, so I sent the documents to each buyer's attorney, helped with FSA information, put them in touch with the tenants farming the land, and made sure everyone had the sellers' attorney contacts and closing dates.
About a week before the year-end closing, the sellers pre-signed. On closing day, a few items on the settlement statement needed correcting. They were caught and fixed right away, I walked the sellers through the updates, and we closed on time on December 30, 2022.
How does a multi-tract online land auction work?
- Listing meeting: Set goals, review the farm and choose the sale method.
- Due diligence package: FSA maps, soils, topography, tile maps, fertility records, title work and disclosures.
- Tract plan: Decide how to divide the farm so each tract makes sense for buyers.
- Marketing: MLS, land websites, newspapers and direct mail in the weeks before bidding opens.
- Auction: Bidders compete online by tract or for combinations of tracts, with auctioneers and ring men running the sale.
- Purchase agreements: Winning bidders sign right after the auction.
- Closing: Attorneys or the closing agent prepare the settlement statements. Everyone reviews them, signs and closes.
Lessons for landowners
- Tracts can widen your buyer pool. Not every buyer wants 280 acres.
- Online auctions reach bidders anywhere, and that includes sellers who can't be there in person.
- Check every number on the closing statement before you sign.
- Allow time if you're aiming for a year-end closing. December fills up fast for attorneys and lenders.
"No farm is created equal. A high CPI doesn't automatically mean a farm yields well, so I'm very detailed in my farm listings. I include tile maps, yield data and even fertility data, so buyers can see how the land really performs. I also advise my clients on farm leases, whether they're keeping a renter, changing terms or selling with a lease in place."
— Jen Busch
The bottom line
A good plan and a good team carried this sale, even on a day when I couldn't be in the room. The farm sold and the sellers met their year-end goal.
Thinking about selling a farm from out of state?
I'd be glad to walk you through your options, including online auctions, multi-tract sales and listing on the open market. Request your free farmland valuation or call or text me at (507) 923-7657. You can also browse our current farm and land listings.
Frequently Asked Questions About Online Farmland Auctions
Can I sell my Minnesota farm if I live out of state?
Yes. In this sale all three sellers lived out of state. Documents were signed electronically or in person, and I stayed on the phone with the sellers during the auction.
Why sell a farm in tracts?
Tracts let buyers bid on the piece that fits their operation. Here, one buyer bought two tracts (152 acres) and another bought the third (80 acres).
How does an online land auction work?
Bidders register and bid online while auctioneers and ring men manage the sale, here from a studio. Winning bidders then sign purchase agreements and move toward closing.
Do buyers need their own agent at a land auction?
No. In this sale none of the buyers had an agent. I sent the documents to their attorneys and helped with FSA and tenant information.
What should I check before closing?
Review the settlement statement line by line. In this case, a careful review on closing day caught a few items, and they were fixed before signing.
Does a high CPI mean a farm yields well?
Not always. CPI rates the soil's potential, but drainage, tile, fertility and management all affect real yields. That's why I include tile maps, yield data and fertility data in my farm listings whenever they're available, and I help landowners with lease questions too. See my tips for leasing out your farm.
Disclosure: Details come from Jen's transaction records. Client names and sale prices are left out for privacy. This case study is general information, not legal or tax advice, and it does not guarantee any result. Every property and sale is different. Equal Housing Opportunity.
Sold by Jen Busch while affiliated with LandProz Real Estate, a previous brokerage, before she founded United Country Real Estate | Midwest Home & Farm Realty.