7 Tips You Should Know Before Selling
Your Farm
We Asked the Experts
Originally
Posted on April 30th
2020 by Mason Spurgeon
Farms, to many people, are the largest asset they own. So when it comes time to sell, you want to make sure it is done right to maximize your return.
Selling a farm can be an overwhelming task for many landowners, especially if the property was inherited. Before selling your farm, there are several things to be done. We asked experts to give us tips on what a seller should do before selling their farm, and these are the best 7 tips.
Get the Price RIGHT!
In order to make a quick sale on
your property, price your farm no more than 5 to 10% over market price. This
will give a potential buyer the sense of urgency to act, and a buyer will come
to the table fast because they know the property will sell fast. - Kevin Small, United Country Land Pros
Make the Place Presentable – Tidy Up
The biggest tip I can give a
landowner when preparing their land for sale, outside of pricing it correctly,
is to get the property as “market ready” as possible. What I mean is to have it
look its best before it goes to market. Mowing up the roads and trails and
grown up areas that would normally be mowed, fixing up gates that are laying
over, or not hanging straight, and cleaning up old junk that may be laying
around—make the property have the best “curb appeal” possible! This really
helps farms sell when they “show well.” Think
of it as if you were the buyer: when it looks good, it’s more appealing to a
potential buyer. – Jeff Propst, Whitetail Properties Real Estate, LLC
“You never have a second chance
to make a first impression.” It seems fairly obvious, but there are many times
the seller can make a few changes to improve the sale of their farm. It is as
simple as mowing areas, hauling off scrap metal, burning brush piles, and
making the farm look organized. Lastly, on tillable farms, anything you can do
to increase the percent of tillable acres helps the sale of the property.
Regrading waterways and terraces, drain tiles, and removing trees or fence rows—these
all help in the sale of the farm. - Jose' B. Cruz, United Country Land and Lake
Properties
Consider Dividing the Property (Think about its Highest and Best Use)
Consider selling multiple tracts to drive a higher price in total. Just know it may extend the total time it takes to sell it all. – Wes Tuley, Ragar Realty
Get a Survey (Know Exactly What You are Selling)
When selling or buying a farm,
it’s a very good idea to have the property surveyed. Not only can it make
any potential buyers more comfortable by visually seeing the property lines, it
can also promote a good relationship with neighbors when all parties know their
boundaries. - Kurt Hollenberg, United Country Missouri Land &
Home
I would recommend that any seller
obtain a survey of their land. In my
experience, many landowners have passed down their land to their children. This is great, but sometimes the actual
property lines get lost in the transfer of ownership. This will eliminate the possibility of any
disputes with adjoining landowners. – Amanda Allen, Missouri Central Real
Estate Co. LLC
Decide: Auction or Listing?
When selling land, not all farms
benefit from the same marketing approach. Now more than ever, certain
types of land could be better suited for varying types of marketing
strategy. While moderately sized Class A soil-rich farms could likely do
well across all platforms, that isn’t the case for other classifications of
land. Oftentimes, recreational or larger hunting tracts can be risky or highly
volatile under a public auction format. One must also closely analyze the size
of their land and geographical location. If a farm is large and conducive
to parceling into multiple tracts, then that must be
considered. Conversely, breaking the farm up into too many sections can
have a negative impact on value, so this practice isn’t always as easy as it
sounds. One must think over many options and utilize a trusted professional to
navigate situations like these. – Luke Worrell, Worrell Land Services, LLC
Use Technology
Work Smarter... Not harder... Let Drone technology do all the work to sell your land/farm property. Drones can uniquely Tell Your Story about the land/farm property you want to sell. Practice Makes Perfect: This tip is crucial for anyone who has never operated a drone before. You should not attempt to rush this process, as doing so could lead to wasted time, money, and even pose safety concerns. Give yourself time to practice operating the drone and trying out different locations/positions. - Karen Funkenbusch, Missouri Beginning Farmers & Ranchers
Call a Professional
If you are considering selling
land, work with a local agent that you trust, who knows the industry and the
area. Selling land is an in-depth
process: you need to be able to price it with the market, provide aerial maps,
soil maps, FSA information, crop history, cash rent agreements, boundary lines,
etc. Having an experienced agent who knows the area, the market, and where to
find this information and make it available to potential buyers, will make the
selling process so much easier. Also
make sure they are able to effectively market your property - having your
listing in the right websites and publications will ensure a timely sale. -
Jennifer Wood, Fretwell & Associates Real Estate
I believe that the most important
thing for a seller to do when selling their property is use a land broker who
is familiar with the general region and current market conditions of the
specific property. The guidance that a knowledgeable land broker can give to a
seller is invaluable to making sure the seller maximizes sale price. This is done
through the expertise and market insight of the broker when it comes to price
and marketing of any individual property. - Brad Belser, Illinois Farm and Rec Land
Conclusion
If you are going to sell your farm,
do your homework. Gather all the
information you have about your property and have it ready for the listing
agent, buyer, or the appraisers. It will
make everything easier and faster for all the parties involved, if you know
exactly what you are selling.
Overall, the experts recommend
pricing and marketing the property correctly.
I could not agree more. I have
seen properties that were overpriced sit on the market for years, and
properties that were not marketed properly sell for less than market value,
only to resell shortly after for a higher price.
Whatever you decide to do with
your property is your business, but consider enlisting some help from real
estate professionals, i.e. real estate agents, auctioneers, or appraisers.