Can you inspect land before an auction? Can you visit an auction property before bidding? Can you walk land before buying it? These are all variations of the same question, can you see the property before a land auction starts? And the answer to that question is an overwhelming “yes.”
Land and auction property inspection is not only important, but utterly and completely encouraged. In most instances, not doing so is a significant display of unpreparedness. You can walk before buying, and most certainly should.
While the heat of the auction brings all manner of excitement, it’s crucial to understand the details of the land being sold. While you can learn much by studying marketing materials, including photos, videos, drone shots, descriptions, and more, there’s no substitute for seeing that property in person. The branches whipping in the wind. Sunlight cascading through a stand of timber. A deer emerging from a thicket across the valley. Those are the pre-ownership moments that spark a smile, and a simple thought, “Yep, this is the one for me.”
Editor’s Note: This is not financial, investment, legal, or real estate advice. Consult with a financial planner, investment specialist, real estate lawyer, and real estate professional before buying or selling real estate.
Why You Must Inspect the Land
Buying land is a significant investment. The wrong purchase can lead to avoidable regret. Oftentimes, simple inspections can prevent much of that. There are many reasons why you must inspect the land.
Of course, this doesn’t mean there is anything wrong with the property. But there’s an undeniable compatibility element in play. There’s a right and wrong property for everyone, and most times, it requires in-person inspection to determine this. Or, at least, to be certain of it.
There are many things to look for during your visit. Search for old fences, pins, or markers for boundaries. Check if roads are public or private easements. Note power lines, water sources, or sewer options. Walk the land to find low spots, rocky areas, and other subpar land features.
Dave Skinner, a Whitetail Properties Land Specialist in Kentucky, points to one important form of pre-auction prep, studying surveys. These aren’t always recent, either.
He notes that, in Kentucky, it's quite common to buy and sell properties without a survey. But if there isn't a survey, he wants to know a few things. It requires walking property lines, studying landmark details, analyzing the deed, and if required, staying focused on finding obscure markers.
Whitetail Properties Land Specialist Luke Wallace agrees. He says to do due diligence well before the auction date.
“If you're truly interested in purchasing the parcel, get out there and do your research,” Wallace said. “Tour the property. Know the location of access and utility availability. Can you drill a well on the property? Is there a tenant on the property? Each property comes with its own set of unknowns. Don't take the agent's word for it. Remove the unknowns from the equation.”
Once on the farm, start by verifying property boundaries. Gauge lines to ensure physical boundaries match that of online platforms, county plats, etc. If there are discrepancies or disputes, you need to know before auction day. If possible, address it. Decide whether it’s prudent to move forward or walk away.
While studying property lines, consider the physical shape of the landscape. Look for hidden problems, such as large swamps, steep slopes, and more. How are the habitat and topography? Are these suitable for you and your needs? Do the property features match your intended use for the property?
Next, check road access into the property. Quality road frontage is best, but a deeded access works for many situations, too. Either way, it needs to accommodate the type and frequency of traffic you intend for the parcel.
Likewise, study available utility hookups. This is crucial for intended use, but also resale value. If utilities aren’t possible, it greatly restricts what can be done on and with the property. Obviously, confirm actual conditions match the listing description, as vast differences between the two are big red flags.
Types of Pre-Auction Viewings
There are various types of pre-action viewings. The most common and official includes scheduled open houses. These are on dates set by the auctioneer (or assigned Land Specialist), and the public is welcomed to attend.
Other opportunities include private viewings booked with the representing Land Specialist. These are more one-on-one situations and involve a more detailed showing of the farm.
Lastly, self-guided walk-throughs are sometimes, but not always, permitted by the seller. If so, it’s a great opportunity to get an intimate feel of the land and see if it’s truly the right tract for you. There are no conversations or disruptions. It’s just you and the land. You can feel in your bones when it’s the right piece of dirt.
Never, under any circumstance, enter the property without communicating with the Land Specialist in charge and obvious permission from the current landowner. Failing to do so is a massive mistake, and in some cases, might even be considered trespassing.
Land Questions to Ask the Auctioneer, Auction House, or Land Specialist in Charge
Due diligence isn’t just about walking the property. It also requires asking the auctioneer, auction house, or Land Specialist important questions. Keep a running list of things you want to know. Then, ask them.
Are there local zoning rules or building limits? Of course, there likely are. You need to know how restrictive, if at all, these zoning rules can be.
Are there any hidden liens or back taxes? If so, this can be a burden that prevents the sale or becomes an unforeseen burden for you.
Is the sale absolute or subject to a reserve price? This can greatly influence the outcome of the auction and impact how it plays out.
What is the required deposit amount on auction day? Oftentimes, it’s 10% of the final bid plus the buyer’s premium.
Attend a Few Practice Auctions
Those looking to buy land should attend a few practice auctions. Jason Ziegler, a Whitetail Properties broker and Land Specialist in west-central Minnesota, says the more you gain experience the more comfortable you will become with the auction process. This includes everything leading up to the big day.
Therefore, attend some practice auctions. If you can't attend live, in-person events, watch them online. This allows you to get the feel for and prepare for them better. The more you prepare for an auction, the more likely you are to know what you’re buying. This increases confidence in the entire auction experience.
Secure the Proper Financing
So, you walked the farm, and it looked incredible. It’s time to make big moves, friend. Rural 1st Loan Officer Emily Stamper encourages potential buyers to look at the property going to auction, and to do so as quickly as possible. Obviously, the sale timeframes are set, and it’s crucial to prepare long before the auction kicks off.
Once you’ve determined the property is of interest, it’s time to contact your lender. Get pre-approved weeks before the auction. Doing so allows you to bid with peace of mind and a strong hand. Then, with the winning bid, everything flows smoothly. But that doesn’t happen if you don’t start the financing process well in advance. Take the required steps, and once a property becomes available, you’re ready to go.
Stamper says most people reach out to her a couple weeks in advance of targeted auctions. This allows them to secure financing in time, which includes the pre-approval process, loan terms, planning, and more.
Buy Land with Ranch & Farm Auctions
Remember, even with preparation and planning, real estate can feel overwhelming. New and experienced buyers alike benefit from sound representation.
Dustin Pavelski, a Land Specialist in Pennsylvania and New York, points to how Ranch & Farms Auctions excels at serving you — the buyer. He says Whitetail Properties is very involved with training, including training tools, great programs, and access to many resources. This includes access to 400-plus other Land Specialists throughout the country. That’s a wealth of knowledge working for you.
All things considered, previewing farms long before auction day helps protect your investment. Our parting advice? Work with a Ranch & Farm Auctions Land Specialist. Read all auction terms and conditions before bidding day. And walk the farm you hope to buy. The big day is coming.