In Australia, there are four popular methods of sale for farmland: public auction, private treaty, expressions of interest and tender. The benefits of each, and considerations, are outlined briefly below.
The auction method is recommended for properties:
Recent example: ‘Tenterden Station’, sold under the hammer at auction for $17 million. 6 registered bidders, 26 bids placed with the bidding opening at $9 million, .
The private treaty method is recommended for properties:
Recent example: ‘Dyamberin’, sold for $13.4 million in an off market private treaty negotiation. The negotiation took a little over 6 months to achieve an unconditional sale.
This is a useful sales method for a property which is:
Tender presents another opportunity for sellers to create a competitive situation without stating a listed price. They set the terms, conditions and the deadline, and prospective buyers have only one opportunity to put forward their most competitive offer. Like auction, tender increases the number of enquiries, inspections and opportunities to obtain the very best price for the property. Also, the seller doesn’t necessarily have to accept the highest price. They can choose to negotiate with any of the tendering parties to achieve a satisfactory conclusion. The main benefits of this methodology are:
A set tender date allows the buyer to better plan and arrange finance, sell their existing property, organise a property check, familiarise themselves with all the tender documents and consult their solicitor.
Want to discuss these methods of sale? andrew.starr@raywhite.com or bbirch@raywhite.com
Ray White Rural and Livestock (New South Wales) has a corporate agribusiness division specialising in the full suite of agribusiness transactions, rural and livestock divestment and farmland acquisition services to clients, including: REACH: Global marketing partnered with highly-localised inspections and buyer support. COMMUNICATION: Strategic consultation with prospective buyers. NEGOTIATION: handling … Read more