Results 1 to 9 of 9

Thread: DNR Land Auction Bidding Tips

  1. #1
    New member
    Join Date
    Jan 2012
    Posts
    11

    Default DNR Land Auction Bidding Tips

    I'm considering placing a bid on a DNR offered rural property in the residents-only part of the auction this year. I'm trying to determine how aggressive I'll likely need to be to be competitive.

    I have been searching the web for data on previous year's auction results (to look for comps and bidding patterns), but have come up empty. If a starting bid is say, $20k, is the bidding likely to finish 25% over that number, or is that rare (and parcel specific)?

    Any advice that the community can throw my way would be appreciated. Thanks!

  2. #2
    Supporting Member iofthetaiga's Avatar
    Join Date
    Oct 2009
    Location
    Tanana Valley AK
    Posts
    7,224

    Default

    My only advice would be don't bid more than you can afford, and don't bid unless you're really sure you want to own whatever parcel you're considering.
    ...he who knows nothing is nearer to truth than he whose mind is filled with falsehoods & errors. ~Thomas Jefferson
    I would rather have a mind opened by wonder than one closed by belief. ~Gerry Spence
    The last thing Alaska needs is another bigot. ~member Catch It
    #Resist

  3. #3
    Member Libertine's Avatar
    Join Date
    May 2013
    Location
    Murder Capitol, AK
    Posts
    185

    Default

    Quote Originally Posted by mawelge View Post
    I'm considering placing a bid on a DNR offered rural property in the residents-only part of the auction this year. I'm trying to determine how aggressive I'll likely need to be to be competitive.

    I have been searching the web for data on previous year's auction results (to look for comps and bidding patterns), but have come up empty. If a starting bid is say, $20k, is the bidding likely to finish 25% over that number, or is that rare (and parcel specific)?

    Any advice that the community can throw my way would be appreciated. Thanks!

    A few years back I placed some bids on some recreational parcels in the Trapper Creek area as part of the State DNR auction. All the properties were surveyed and platted years ago, and the seven or so lots I bid on were accessible via snow machine or ATV from the Parks Highway. The parcels were in fairly close proximity to each other, same topography, and in an area I was familiar with. Rather than bid on one lot, I figured I would have a better shot by bidding on several. I wondered how much to bid on each, and decided to go a flat 5% over the starting bid for each lot. I won a nice parcel without overbidding, and was willing to come up empty if need be. I went ahead and paid cash for the lot, rather than make installment payments. It took about 1 year for the State of Alaska to finally issue and mail me a patent.

    A few tips I might offer from my experience:

    ~Look over the online photos and read the land assessor's report, if available.
    ~Find the survey plat for the property, and make a field visit if at all possible.
    ~View Google Earth, Bing Maps, quad maps, and satellite imagery to get the lay of the land if buying sight unseen.
    ~If the parcel is in a taxed borough, and if available, find out the assessed value (different from the starting bid)
    ~Don't overbid, as you may be the only person bidding on the parcel.
    ~Don't bid the starting price on a desirable parcel, as you probably won't be competitive.

    If I remember correctly, the State also has over-the-counter land sales, where the whole bidding process is eliminated. Some people I know have done the over-the-counter route.

    Other avenues for land sales include the University of Alaska parcels available for public sale. The Alaska Mental Health Trust also offers parcels for sale.

    Best of luck in your bidding. It's a somewhat fun process and very rewarding if you win.

  4. #4
    Member ChugiakTinkerer's Avatar
    Join Date
    Apr 2013
    Location
    Chugiak, Alaska
    Posts
    683

    Default

    The above advice is all good. The State auctions are a wonderful way to get a parcel in lands that aren't otherwise open for private ownership. If you are looking in an area that has private land on the market you would do well to consider those lots too. Every parcel and every buyer are different, but in my opinion the State appraisals are over-valued. My wife and I recently closed on some land that had State parcels in the area available over the counter. The State lots are listed at significant premium over what we paid for essentially identical land. The only problem with the auctions is that you can't bid less than what the State says it's worth.

  5. #5
    Member
    Join Date
    Jul 2007
    Location
    Between two lakes in Alaska
    Posts
    952

    Default

    I have tried to track some of what the OP is looking for. Little to mixed results. The DNR does put out a winner's list with the price bid, they never seemed to be something I could find other than right after the bid. While I was trying to crack the bid code I never came up with a good formula.

    ADN had a story a while back about people bidding on property and not going through with the deal. This may have been more about the first bids for OTC sales, but it may play out in the other bids as well.

    The people(s) that live across the road from us had a lot come up for sale between their two lots. The two neighbors paid several thousand $ above the min. bid to be sure no one could build between them. I wish we'd bought the lots on either side of us for the same reason; every time I see the guy that owns the lot next to us I offer to buy it just keep some open space next to us.

    I've also seen where people have bid on side by side lots, John Public and Joan Public, bidding well above min. bids so they can have an up sized building lot.

    We bought our original lot on the first round of OTC, so no one offered more than the min. bid. This was 13 or so years ago and the State put up a lot of lots at that time. We bought a nicer lot & cabin just across the road from lot 1 and sold lot 1 for what we paid for it plus what we had into it in fees, etc. The weekend our ad hit the paper we could have sold LOTS of lots! I think the last time lot 1 was sold it was for a LOT (2 or 3X) more than we paid the State.

    A person never knows. Good luck.

  6. #6
    New member
    Join Date
    Jan 2012
    Posts
    11

    Default

    Thanks for the input guys. I guess at the end of the day I need to bid over the minimum but not get carried away. It sounds like if you're afraid to lose the bidding, you might make a dumb decision.

  7. #7
    Member fshgde's Avatar
    Join Date
    Nov 2006
    Location
    alaska
    Posts
    260

    Default

    You can go into dnr land office they can tell you what others paid for lots in that subdivision. If it's the last lot prices could be higher than if.it's the first round of lots being offered.

  8. #8
    Supporting Member iofthetaiga's Avatar
    Join Date
    Oct 2009
    Location
    Tanana Valley AK
    Posts
    7,224

    Default

    Quote Originally Posted by mawelge View Post
    It sounds like if you're afraid to lose the bidding, you might make a dumb decision.
    Yes, and if I'm remembering the same story LeonardC made reference to, it was about a guy who bid on a whole bunch of lots thinking his chances were slim.....and then won all of them. That's what I had in mind when I made my first comment.
    ...he who knows nothing is nearer to truth than he whose mind is filled with falsehoods & errors. ~Thomas Jefferson
    I would rather have a mind opened by wonder than one closed by belief. ~Gerry Spence
    The last thing Alaska needs is another bigot. ~member Catch It
    #Resist

  9. #9
    Member akmatt66's Avatar
    Join Date
    Aug 2013
    Location
    Eagle River
    Posts
    44

    Default

    I over bidded on my lot last year and won it of course. I was the only bidder and I kick myself for bidding it up but I kept it and won't make that mistake again.

    Sent from my SAMSUNG-SM-G920A using Tapatalk

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •