Not that any of this applies to this exact situation and not that anyone gives a chit but I will provide some real life examples of sales privately, sealed bids, and auctions
#1 In 1996 my wife's family wanted to sell a farm to pay a debt her POS uncle had incurred failing at farming. They listed it for $2700/acre with a relator and had no offers. They held it for a year or two and then just decided to put it up for public auction. It sold for $4700/acre.
#2 In 2000 we were the high bidder at a public auction on an old farmhouse and buildings. My bid was $35,000 and the owner would not sell it. He later sold it after the auction for far less privately.
#3. In 2006 we bought a home for $35,000 privately. It then sold for $64,500. Had it went to auction originally it would have been over $35,000
#4 In 2007 at a public auction I was the backup bidder on a tri-plex. I was in at $34,000 and a realtor's son was at $35,000. He went nuts dumping the banks money into it and found out he was screwed. He then tried selling it privately and lost his arse.
#5 In 2009 at a public auction we were the backup bidders on a home. Our bid was $23,000. A gentleman bid $24,000 and I chuckled as I knew we were a bit over at $23,000. He then listed it with a realtor for $32,000. He ended up taking less than his bid price.
#6 In 2010 there was 155 acres of bottom ground that came up for public auction. It was against the levee and needed serious tile work. They held the auction at the town hall. Dad was sitting next to a neighbor. As with all auctions the auctioneer starts high and drops. Well, he dropped the bid to $1600/acre. The neighbor raises his hand. No one bids. In normal land auctions they take three breaks to allow folks to think. During the first break the neighbor looks over at Dad and says, "do you think I bid too soon". Dad says "yep" After two more breaks no one had bid, and the neighbor owned it.
#7 For decades I watched as my wife's POS uncle pissed away everything his father, uncle, and aunts created through hard work farming. It was sad. I watched as it was sold off 160 acres, 120 acres, 40 acres, and 30 acres at a time. In every single case it sold higher at public auction than it was listed for privately. In the end all that was left was a 6-bedroom home, buildings, and a few acres. I remember the final auction of the house, buildings, and bins. It included the front 30 acres. I will never forget that cold arse day as my wife looked at me crying as the bids were placed. She just wanted the house, and I wanted it for her. I just was not in a place to buy it. I was certain the guy who bought it would doze the home. To my amazement he did not. He rented it but I knew he had no interest in keeping it. He is a huge farmer here, what we call a CBF...corn, beans, and Florida farmer. I watched the home for activity and without my wife or anyone in her family knowing I kept in contact with the owner. This went on a good number of years. Friday March 25, 2016, I saw a survey crew there, so I knew it was time. I phoned Jim that night. He said he was going to sell it and had an unofficial offer of $75,000 but the guy had not been in touch lately. At that point I should have just said let’s call it a done deal, but I did not. I told him I would need to check with my wife, and I would phone him Saturday evening. I checked with my wife, and she was thrilled. As I said I would I called Jim Saturday evening, and he gave me a total line of BS. He claimed after no contact, out of the blue, the original person contacted him Saturday morning. The owner now wanted each of us to submit sealed bids through his attorney. We went over to the attorney’s office and sat in the parking lot a bit deciding how much to bid. I said it must be a wacky number, so we settled at $97,300. When I was writing up the bid, I mistakenly wrote $97,200. When we left my wife said, “I will castrate you if we lose that for $100” Well I figured we had been played and there never was another bidder. When I phoned the attorney, a few days later asking if we got it, he let out a big ole belly laugh and said, “oh yeah you got it alright”. Yeah, we had been played.
#8 In January 2023 one of my sons texted me a link to a home and set of buildings that was listed online through Zillow. It was a big 5-bedroom farmhouse and listed at $65,000 with a realtor. They would not be any showings. There was a 2-hour open house on a Saturday from 11AM-1PM. All offers had to be free of contingency and were due at 1PM. I tried explaining to him that the $65,000 price was a "teaser” and they were fishing for better offers. It sold for over $65,000 but much less than it would at a public auction. I believe the highest offer was around $125,000. Had it gone to a public auction it would have gone higher
#9 In May 2024 my son again texts me a listing for a home on a few acres. It was listed with a realtor. There were to be no showings, no open houses, no nothing. I called the listing agent. She just said that it was sold based on what you see from a drive-by. I do not remember the exact asking price as her attitude turned me away. I think it was around $120,00 Had it gone to a public auction it might have brought close to what they asked and possibly more.
#10 Now this one might turn out to be the craziest one yet. Currently I am trying to help one of my sons buy a house and buildings on a very small farm. It sits on 28 acres of very rough pasture. There is a decent garage, 40x60 shed, and an old barn. I have never been in the house, but I put hay up in the barn and it needs work. It was a horse guy’s place, and he passed away years ago. His widow kept horses for a while but tragically she was killed along with her neighbor in a bad car wreck. I kept watch on the place and asked around a bit. Back in early May I started hearing rumors it might get auctioned. I called one local auctioneer, and he was not aware of it, I phoned two more and left generic messages but never heard back. I then called what I figured would be the least likely auctioneer and realtor to get the sale. It turns out he was in negotiations to get it. I stressed to him that I felt the most fair and honest way was a live on-site auction. He agreed but he said the heirs were pushing for a realtor listing. He is also a realtor. He said they were planning an on-site auction of the personal property for August 17 which of course is today. After that it would be listed. As time went by, I did not see any activity there. Last week it was obvious there was not going to be an auction today. I phoned him one week ago today asking what was going on. He gave the politically correct answer (excuse) that they thought having it today would interfere with the rodeo. The auction would be over by 1PM and the rodeo is 40 miles away at 7PM. The truth is he did not get his ducks in a row! He says now they are going to sell the personal property either September 21st or 28th. Here is where I just started shaking my head in disbelief. After that the house and land will be listed through his realty office. They will select 5 offers, might not be the 5 highest, and then put everyone in a circle and allow them to raise their offer. Folks that might be the dumbest concept I have seen. In a sense it is an auction of some sort, but it will be so damn weird it is hard to grasp. It is turning into a total chit show.
