Where Time, Liquidity, and Certainty Coincide
There are some very good benefits to the landowner in this unique system. Typically, open outcry auctions are too risky and irreparably damaging to both the seller and the property’s reputation. We negotiate from a position of strength and all bids are sealed and the public will not know the bids, only the public record of the final sale price.
In our experience and for the properties we sell, price and value is the number one hindrance. We have the buyers who have been following our properties for years looking for the best fit and the best value to them. With our sealed bid model, the price is removed as an obstacle. This eliminates 50% of the reason a buyer won’t step forward and engage with us. Although there is no established asking price, as the brokers, we discuss the property’s value with the seller before entering into this program. If it doesn’t sell at the auction, then it transitions into a listing and is immediately positioned as an extremely well-marketed property with zero marketing money wasted.
We acknowledge that alternative sales approach may be necessary to help meet your goals. Our team is available to help walk you through your options. Contact us today for more information at Land@JonKohler.com.
The Sealed Bid Auction Process is Ideal for
- Want or need certainty of sale on a set day
- Have high lost opportunity cost and carrying cost, or wish to put their money to use somewhere else with greater return.
- Want to do explore every marketing opportunity and get the loudest bang for the buck- they may not sell at the auction itself but know the property is the most heavily promoted property in the market.
Buyers Gravitate Towards the Sealed Bid
- When price is their chief concern, this process helps them overcome that concern and fall in love and try to buy the property at a price they set (and the seller accepts or not).
- The offering looks very popular, they see opportunity, and the interest and excitement from others is contagious.
- They are forced to make a decision on a certain day which this type of buyer is classic for delaying.
Past Auctions & Results
Honey Lake Plantation
• 613 +/- acre Main Plantation Block Historic Red Hills Plantation
• Featuring a Rare 80-acre Deep Water Lake
• Jefferson County and Madison County, Florida
Very successful auction, closed after the auction to one of the bidders. The seller had very high opportunity costs and essentially the plantation sold at a discount to what it would take in a normal market absorption. The plantation had a very strict conservation easement which typically increases the absorption period; however, the sealed bid auction had the property closed within two and one half months and the seller was extremely happy.
Lake Sugar Plum
Very successful auction. Sellers were investors who needed to sell a rare and unique property for the highest price in the quickest amount of time. The process brought $6,338 per acre.
“Unlike traditional auction companies that rely on seller desperation and cater to the same following of “bottom feeders” over and over we needed an advocate who could negotiate a sale on a level between retail and wholesale. The results speak for themselves. Kohler brought us $6,300 per acre at an auction in a “post bubble” market!” – Jim Ellis & Tom Wilkinson
Old Agency Reserve
aka River Bluff
Brought a record high of $4,333/acre. We found a buyer from North Carolina who later placed a conservation easement on the property with our help.