Blog > Why You Shouldn’t Auction Your Farm with No Reserve
Selling a farm is a major financial decision—one that affects your family's future, legacy, and financial security. Yet, I’m surprised by how many landowners I’ve spoken to in the past year who have felt pressured into signing up for a no reserve auction, also known as an absolute sale. If you're considering selling your farm, understanding the risks of a no reserve auction versus the protection of a reserve price is crucial.
What is a No Reserve Auction?
A no reserve auction means that once your farm is listed for sale, it must sell to the highest bidder—regardless of the final bid amount. When you sign the auction contract, there will be a clause legally obligating you to transfer ownership, no matter how high or low the winning bid is.
At first glance, this might sound like a straightforward way to attract more bidders. But let’s take a step back, why would anyone agree to sell their most valuable asset without a safety net?
The Importance of a Reserve Price
A reserve price is your financial safeguard. It’s a minimum price that must be met for the sale to go through. If bidding does not reach your reserve, you have no obligation to sell. This protection ensures that you don’t walk away from the auction with less than your farm is worth.
Let’s be clear, we’re not selling used tractors here. We’re selling land, potentially your family’s nest egg. Your farm is more than just property; it represents years of hard work, investment, and legacy. It deserves to be protected.
Who Really Benefits from a No Reserve Auction?
A no reserve auction might seem like a way to create competitive bidding, but in reality, it often benefits the auctioneer more than the seller. Here’s why:
No Pressure on the Auctioneer – With a no reserve sale, the auctioneer doesn’t have to worry about hitting a target price. Whether the land sells for full value or far below market rate, they still collect their commission.
No Motivation to Maximize Price – Without a reserve, the auctioneer’s primary concern is making sure the sale happens—not ensuring that you, the seller, get the best possible price.
Higher Risk for Sellers – If the bidding starts low and buyer interest isn’t strong, you could end up giving away your land for less than its true value.
A Smarter Approach to Selling Your Farm
When selling farmland, you deserve an auction strategy that works in your best interest. A well-planned auction with a reasonable reserve price ensures that you retain control while still encouraging strong buyer participation.
As an experienced land auctioneer, I believe in protecting my sellers while still creating an environment that generates competitive bidding. The goal is to maximize your return while eliminating unnecessary risk.
Final Thoughts
Before committing to an auction, make sure you fully understand the terms of the contract. If another auctioneer is pressuring you into a no reserve sale, ask yourself: Who really benefits from this? If the answer isn’t you, it might be time to reconsider your options.
If you're thinking about selling your farm and want a strategy that protects your investment while still achieving top dollar, let’s talk. I’d be happy to walk you through the best approach for your land sale.
Dennis Prussman, Realtor, Auctioneer
Land Specialist, Realtor, Auctioneer, Husband (38-years), Dad, Bee Keeper, Veteran (34-years).
Dennis is a Sellers Agent who specializes in marketing Missouri farms to a local, regional, and nationwide audience with a goal of maximizing the farm’s sale price. He offers both traditional listing and auction services and is an award-winning marketing specialist at the national level. He has a reputation for exceeding sale price and customer service expectations.