AN ECSTATIC vendor and buyers who were pleased with their new purchase were the result of an online auction held via Openn Negotiation last week.
With online auctions still a relatively new concept in the Western Australian rural property market, the sale of Durawah Farm at Durawah, near Geraldton, stunned Nutrien Harcourts WA sales representative and selling agent Chad Smith as it achieved almost $550,000 above the reserve.
"The sale price definitely exceeded my expectations," Mr Smith said.
Strong bidding from five bidders resulted in stiff competition for the productive cropping and grazing farm, with 40 bids being placed.
The first bid of $1.1 million was placed on February 22, which was 15 days before the closing date.
The reserve of $2m was reached an hour and a half prior to the final bidding stage.
Then bidding ramped up, with the property being sold nine minutes after the final bidding stage for $2,547,500.
With the property measuring 481.5 hectares (370ha arable), the sale equated to $5291 per hectare ($6885 per arable hectare).
This is a major increase in land value, based on Rural Bank's annual land values report, which recorded an average price for the Chapman Valley shire in 2019 of $2404/ha - an increase of 55 per cent.
Mr Smith said feedback from the buyers, local Atrox Nominees Pty Ltd and seller Sue Forrester about the Openn Negotiation platform was very positive.
"The platform is very transparent for both sellers and buyers and allows everyone access to the bidding action," he said.
"The buyers liked the privacy and being able to bid without outside influence or pressure - it was all in their own time.
"The seller told me they didn't think they would have gotten that price in a live auction."
The property attracted widespread interest but it came down to two local bidders battling it out.
Mr Smith said he would certainly consider suggesting Openn Negotiation as a selling method in the future for the right property.
"For the right property I would definitely use the platform again, but you need strong interest - at least four or five keen buyers," Mr Smith said.
"Openn Negotiation is a great platform for selling rural property, allowing buyers to bid from anywhere in the world at any time."
While some farmers may be a little shy of technology, the Openn Negotiation platform is very simple to participate and everything is transparent, while the bidders identity is not disclosed.
