Absolute Auction vs. Private Treaty Listing
When selling farmland, one major decision a landowner faces is whether to use an absolute auction or a private treaty listing. An absolute auction — sometimes called a no‑reserve auction — means the land will be sold to the highest bidder regardless of price once bidding closes at the set date and time. Because there’s no minimum or reserve price, absolute auctions can generate strong competitive bidding and a quick sale date, with contracts typically finalized immediately when the hammer falls. This method is transparent and can attract multiple buyers who know the property must sell on auction day, which can help establish fair market value in real time.
In contrast, a private treaty listing is the traditional way to sell land, where the seller and agent set an asking price and then negotiate offers privately with interested buyers over time. There’s no fixed end date, and both price and terms — like closing dates or contingencies — can be negotiated until both parties agree. Private treaty sales offer more flexibility and control for the seller and more time for buyers to arrange financing or due diligence, but they can take longer to complete and don’t create the same competitive urgency that an auction does.
