Land and home auction sales present opportunities for buyers, sellers both

By ANITA MUNSON of the Pilot News

(This story orginally appeared on: ThePilotNews.com )

It’s hard to imagine, but there was a time when real estate auctions weren’t widely popular.

That’s how Daryl Ball, owner of Ball Auction & Realty in Bourbon, recalls the early days of his more than 40 years of experience as an auctioneer. If he wasn’t the first in the area to auction off buildings, farmland, and other real estate, he certainly was among the pioneers in this area.

Ball says in those initial sales, buyers were sometimes afraid there was “something wrong” with the property. But inflation and quality parcels proved those people wrong, he explains.

“People were using yesterday’s prices for selling,” Ball also recalls. “But, at that time, you could not appraise a property high enough for its future value.”

Today, those who sell real estate at auction know that Ball’s adage about “the bidding only goes up” is true. And sellers know their property will sell on the day of the auction. That’s a plus for anyone settling an estate and wanting to close it out as soon as possible. And, with people moving in connection with jobs, an auction could also help end two home payments.

Larry Wattenbarger, a Ball Auction broker associate and auctioneer, agrees that the evolution of real estate auctions has come a long way.  He thinks today’s economic situation is behind an up tick in sales.

“A lot of it depends on what you are selling,” Wattenbarger begins. “If you have some farmland today (to sell), you’ll see a lot of people pulling out of some (Wall Street type) investments and looking at land. They can kick the dirt and feel what they’ve invested in.”

Ball says his auction business has been built, primarily, around estates, but he’s certainly been in the ring for many other kinds. He’s proud of the fact that Ball Auction conducted its sixth county-wide Future Farmers of America auction this year, raising $500 more for each FFA chapter than in last year’s consignment auction.

With more than 800 bid numbers put out, “it’s getting to be an ‘event,’ not just an auction,” the veteran adds. The auction company volunteers its time, then splits its commission with the FFA chapters to help the organization in its many educational efforts with young people across Marshall County. This year’s spectacular array of items included a tractor that sold for $70,000.

In the early 1990s, the Ball Auction staff flew to California for one of its most unusual sales. It was charged with auctioning a real estate portfolio for a major life insurance company that included three days of auctions within a week in three different cities. By the time it was over, the auctioneers had disposed of pistachio and almond farms, vineyards and buildings totaling more than $18 million. Opening bids of at least $100,000 were required, and the same number also was required as bids increased.

“It was funny afterward,” Ball remembers, “because two people in the crowd came up and shook hands with me, shaking their heads about the $100,000 increments. They said they looked at each other after we made the announcement and asked, ‘Is this dude on the same currency we’re on?’ Those rules were given to us (by the insurance company) and there were no reserves.”

More recently, Ball says they had the privilege of conducting an auction for the Irene Corp. owned by the Miller family. There were 35 parcels of land in both Marshall and Kosciusko counties that covered nearly 1,100 acres, and personal property, as well. The land auction registered more than 200 bidders, with 500 in attendance, and the second auction saw 750 registered. The company sold a combine for $250,000 there, and were told it was the highest price attained for a used combine sold at auction in the U.S., Ball says.

“It was showroom quality,” Wattenbarger says, adding that employees of the seller, loyal to the family, wanted to help make the auction a huge success. “The workers wanted him to have a really good day, and that says a lot about the family, too.”

“The neighbors even came to us saying, ‘What can we do (to help)’,” Ball says. “It was the sort of response that made you just feel good and proud to be among people like this, proud to be an American.”

“They made us podiums with handrails,” Wattenbarger said of efforts by supporters of the family who wanted to make sure that ring men could have a clear view of bidders.

One key to a successful auction, Ball and Wattenbarger agree, is product knowledge. “You have to know what it’s worth and what people will pay,” Ball says. “People want a bargain, but they’re willing to go market price for quality. You have to give them a valid reason for their bid.

“And, there are actually three groups of people who really make the sale,” he summarizes. “Those are friends, neighbors and your relatives. If you have them in your corner, you’re halfway there!”