Auction Types: Live, Online, Virtual, and Sealed Bid

Not every farmland sale calls for the same approach. While Schrader Real Estate and Auction Company's specialty is the live multi-tract auction, the company offers multiple auction formats to match the unique circumstances of each property and seller. Understanding the differences between these methods helps sellers make informed decisions about which approach will best achieve their goals.

Live Auction

The live auction remains how Schrader conducts the majority of its land sales, and for good reason. There is no substitute for the energy, urgency, and competitive atmosphere created when qualified buyers gather in one room to bid on a property they want.

Schrader's live auctions are carefully produced events. Rather than holding the auction on the property itself, Schrader typically rents a nearby community center, event venue, or banquet hall close to the property. This deliberate choice serves multiple purposes: it ensures buyers feel confident and comfortable in a professional setting, allows the team to control variables like seating, sound, and technology, and eliminates weather as a factor.

The venue is organized with round-table seating, projection screens displaying live bidding data, and professional staff managing every detail. Schrader's proprietary auction management software runs the bidding process on screen in real time, so every attendee can follow the action and see exactly where the bidding stands on every tract and combination.

Professional ringmen work the room to generate excitement and ensure that no bid goes unnoticed. The result is a competitive environment that motivates buyers to bid aggressively — which directly benefits the seller. Notably, over 95% of Schrader's land bidders still attend the auction in person, a testament to the value of the live experience. However, online bidding is available at every live auction for those who prefer to bid remotely.

Online-Only Auction

An online-only auction takes place entirely on a digital platform — accessible from a phone, laptop, or tablet — and allows buyers to bid over a set time interval. There is no physical event and no live auctioneer calling bids.

To maintain competitive pressure, Schrader implements a soft close: if a bid is placed within the final minutes of the scheduled end time, the bidding window extends automatically. This prevents last-second sniping and creates a dynamic atmosphere where bidding can continue well beyond the scheduled close, much like the final minutes of a competitive live auction.

Online-only auctions can be advantageous in single-tract scenarios and certain multi-tract situations where the seller prefers a digital format. They offer convenience for both buyers and sellers and can attract participation from a broader geographic audience without the logistics of a physical event.

Virtual Auction

A virtual auction is a unique hybrid of live and online methods. In this format, Schrader utilizes its own purpose-built studio room equipped with professional lighting and videography. A live auctioneer calls the auction in real time from the studio, while all bidding takes place online or via phone.

This format preserves the energy and pace of a live cry auctioneer — the urgency in the voice, the rhythm of the bid calls, the human element that drives competition — while allowing buyers to participate from anywhere. It is particularly useful when selling land in a sparsely populated area where assembling a large in-person audience would be difficult, or during extraordinary circumstances such as the COVID-19 pandemic when in-person gatherings were restricted.

While Schrader utilizes this method more frequently for equipment sales, it remains a valuable tool in the real estate toolkit for properties where the virtual format best serves the seller's objectives.

Sealed Bid Auction

On certain properties with unique characteristics, a sealed bid auction can be the most effective approach. In this format, prospective buyers receive due diligence materials and a copy of a proposed auction agreement, then submit their highest bids on pre-defined terms by a cutoff date. The seller reviews all submitted bids and selects the winner.

Like other auction formats, the sealed bid process creates urgency in the marketplace and generates multiple competing offers. The key difference is that bidders do not see each other's bids, which can be strategically advantageous in specific situations:

• When there could be a large difference in perceived value between the highest and second-highest bidder — a sealed bid captures the full premium the top bidder is willing to pay
• When dealing with an asset in a thinner marketplace where a live competitive auction might not generate the same intensity

The marketing effort for a sealed bid auction is similar to any other Schrader auction — thorough, professional, and designed to reach every potential buyer. The difference is simply in how bids are submitted and the seller's ability to review all offers before making a decision.

Choosing the Right Method

Every seller's scenario is unique, and Schrader evaluates each property and situation individually to recommend the approach most likely to achieve the seller's goals. In most agricultural regions, the live multi-tract auction produces the highest value. But having multiple proven formats available means Schrader can adapt to any property, any market, and any set of seller objectives — rather than forcing every sale into a one-size-fits-all approach.