Private treaty livestock sales are very similar to private party car sales in that the seller negotiates directly with buyers and skips the auction house middleman. Like any type of online transaction, there are pros and cons to private treaty cattle sales. Buyers and sellers alike would do well to brush up on the items listed below to make sure they aren’t taken by surprise.
From a seller’s perspective, private treaty sales give a great amount of control over how they marketing their livestock. There is more flexibility to promote the positive sides of the seller’s stock including the opportunity to highlight unique characteristics of their operation and facilities. Sellers are also able to negotiate the price directly with potential buyers without interference of third parties.
Buyers can benefit from private treaty sales as they are given a more complete picture of how the animals are cared for; including the opportunity to discuss items like the overall herd health or nutrition information. This also affords buyers the unique chance to speak directly with sellers and develop one-on-one business relationships that go much deeper than a simple auction house. Private treaty cattle sales also allow buyers to purchase direct from a farm – reducing any risk of added stress or exposure to disease.
The same items that a positives about private treaty cattle sales are also some of the potential pitfalls. For example, sellers must be prepared to answer far more questions about their livestock than when selling through a third party. Both the buyer and seller must also have a solid working knowledge of current market values.
Private treaty sales can also be difficult to locate. Classified cattle websites like The Cattle Range or Cattle Exchange are excellent places to begin researching the private treaty process and often provide helpful tips for those new to the market.
Once cattle have been transported off the lot it can be very difficult to recover and potential financial loss. With private treaty sales, sellers assume nearly all of the financial risk once a price is negotiated, making it all the more important to use an online escrow service to guarantee safety and security of funds both parties.
Legwork = Profitability
As long as you’re willing to put in the time and effort, private treaty cattle sales can be an extremely advantageous. Buyers can get the most complete view of the animals they are purchasing and sellers get the chance to showcase all of the hard work they’ve put into raising superb stock.
For more information on how online escrow can help secure your next private treaty sale, visit PaySAFEescrow.com/Livestock-escrow.