Choice Auction

What is a Choice Auction?

A choice auction is a type of land auction of several tracts where all tracts of land are sold per-acre, and bidders don’t bid on specific tracts. Instead, the winner gets to choose which tracts they want to purchase after a round of bidding is done.

Benefits of Choice Auctions

Choice auctions offer some unique benefits, including:

• Flexibility: You get to choose which tracts you want to buy, so you can focus on the areas that matter most to you.
• Strategic Bidding: With multiple rounds of bidding, you can adjust your strategy based on how the auction unfolds.

How Do Choice Auctions Work?

Here’s how choice auctions differ from standard land auctions:

• No Specific Tract Bidding: You don’t bid on a specific tract of land. Instead, the winner of a choice auction round gets to choose which tracts they want to purchase once bidding is complete.
• Per-Acre Pricing: All tracts are sold per-acre, so you’ll be bidding on a price per acre. The total price the winner will pay will be the price per acre multiplied by the total number of acres in the selected tracts, plus applicable fees.
• Choose Your Tracts: If you win, you can choose which tracts and as many tracts as you like to buy. You pay the total amount of acres multiplied by your bid plus fees.
• Rounds of Bidding: If the initial winner doesn’t choose all the tracts, a new choice auction round starts with fresh bidding. The next winner gets to choose which tracts they want to purchase.
• Until All Tracts are Sold: New rounds will continue to happen until all the tracts in the auction are sold.

Auction Types

Standard land auctions can be held online, in person, or through ACE Live Auction. Here’s how each type works:

1. Online Auction: The auction takes place entirely online, and bidding can occur at any time during the specified auction period and ends at a specific day and time.
2. Live Auction: The auction is held live in a physical location, such as at the property for sale or a public venue. Bidding may, but not always, be available before the live auction begins, sometimes weeks in advance. Final bidding then occurs during the live event with the live auctioneering team.
3. ACE Online Auction: This is a live-streamed auction that allows bidders to participate remotely. You can watch and bid on the auction from anywhere using a computer, tablet, or a phone. You can also talk to an auction manager during the auction if you need help with bidding or need additional information.

Pre-Auction Registration

To participate in a standard land auction, you must create an account and register to bid. This should be done well in advance of any live auction events. The auction company’s staff (LandProz and AuctionCast) has the authority to approve bidders and may request additional information to validate that you are able to complete your purchase if you win.

Multiple Rounds

You can bid on and win any number of rounds in a choice land auction. However, you must create separate bids for each round you are interested in purchasing.

After the Auction: Execution of the Purchase Agreement

Once you have won one or more tracts, you will be required to execute a Purchase Agreement outlining the terms of the auction. This document outlines your responsibilities as a buyer and the terms of the sale.