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Make me an offer

Make me an offer.

Are those words you enjoy hearing when attempting to buy a piece of used equipment, or do you cringe at the phrase?

Usually sellers have already affixed an asking price to that item they're attempting to move. Look through any farm classified section and you'll notice stuff listed for sale normally has a price listed with it. I know many potential buyers get turned off when skimming through such ads and they run across pieces of equipment listed for sale, but with no price. Some sellers just prefer not to list an asking price.

Make me an offer.

I got a call from Lester, a Wisconsin farmer this week. Seems he located a CaseIH 7110 front-wheel assist tractor for sale from a private individual. The tractor had 9,000-plus hours on it, was a late '80s model, and its overall condition was fair at best.

What would be a fair price to offer the seller?

Click on the link below to pull up our last ten years worth of auction sale price data on CaseIH 7110 tractors (131 horsepower). In Lester's case, to help him zero in on fair value, we'll need to focus on the 7110s listed that had higher hours or were listed in less than good to excellent condition. I've also included a link to sale price data on JD 4255 tractors, approximately the same age & horsepower as the CaseIH 7110.

I told Lester $20,000 would be a good figure to offer.

Why $20K? Based on the 1987 model with 8,686 hours in fair condition we saw sell last summer in west-central Minnesota for $21,000. That one had been overhauled at 6,500 hours, enhancing its value compared to the 7110 Lester was looking at buying (no overhaul).

Then there was the 1991 7110 in fair condition that sold for only $14,000 this past August in southeast Pennsylvania. But that one had no cab and was only a two-wheel drive model. So bump up its value a bit for a cab and front-wheel assist and we're pushing $20K again.

Certainly 7110s in premium condition should and do sell for many more dollars. Take the 1991 model with 2,084 hours that sold last year in west-central Minnesota for $40,000. That one was only a two-wheel drive model, but was listed in excellent condition.

Make you an offer? Sure, no problem. But before you make that offer, do your homework.

Click here to download a PDF of auction sale price data for Case IH 7110 tractors.

Click here to download a PDF of auction sale price data for John Deere 4255 tractors.

Make me an offer.

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