Auction sales clearly show market desire
Recent nationwide data from the Real Estate Institute shows an 8 per cent drop in the number of farm sales for the three months ended February 2017 compared to the corresponding period last year.
Local rural property is changing hands, though only when vendors are realistic.
Those pricing a farm based on the income it can generate are finding willing buyers.
While we are still recovering from the dairy cycle’s low point, purchasers need confidence that they can turn a profit from any farm they acquire.
Unless vendors price property accordingly, potential purchasers will not be interested.
Determining value based on profitability enables more first-time buyers to purchase.
New clean streams regulations are also motivating some established farmers to retire, providing younger farmers with additional opportunities.
Auctions are going well and are helping ensure values are maximised.
Marketing a farm at auction demonstrates the owner’s earnest intent to sell, establishing the focus for a concentrated marketing campaign, with every effort working towards the auction date.
At auction, the vendor sets the rules, with the auction sale and purchase agreement made on their terms, ensuring they maintain control of the sale conditions.
Multiple bidders and emotionally charged bidding can push prices beyond expectations, creating a win for the vendor.
Auction is a public and efficient way to bring buyers and sellers together, particularly when the latter understand what their property is realistically worth.
With more farm auctions throughout the rest of autumn, we should see the continuation of favourable sales completed via the auction process.
Meanwhile, in the local lifestyle property sector, demand remains heavy.
Purchasers see these properties as extremely good value compared to other regions.