Your farm or ranch likely represents the majority
of your net worth. When it’s time to
sell, choosing the right broker is a critically important decision. Below
is a quick overview of seven key things to look for when choosing a
broker. I will be writing about each of
these in more detail later. Hopefully,
when I’m done, you will be able to make an informed decision and pick the
broker most likely to help you get the highest price for your land.
Seven Things to Consider When Picking a Broker to Help Sell Your Farm or Ranch
1. A good
broker should be willing to provide you a free
market analysis of your property before
listing it for sale. You don’t want to
rely on rumors and anecdotal information about what land is going for when you
are deciding to sell.
2. Your
broker should have experience with private treaty sales as well as auctions, and
be able to help you determine which is the best option for you.
3. The broker you choose should be able to
identify and minimize issues that could reduce the value of your land while
pointing out opportunities to increase its value.
4. Your
broker needs to be using cutting edge technology in today’s farm and ranch real
estate market. Running an ad in the
paper and putting the word out to your neighbors just doesn’t cut it anymore.
5. The broker you choose must be able to
negotiate effectively whether he is dealing with a neighbor looking to expand
his farming operations, another broker or attorney representing a potential
buyer, or a group of investors. When it
comes to negotiations, one size doesn’t fit all.
6. A good broker should be familiar with the
legal and tax issues typically associated with the sale of farms and
ranches. This can help you avoid a lot
of problems along the way. And as they
say, “An ounce of prevention is worth a pound of cure.”
7. Your
broker needs to fully understand and have experience with 1031-exchanges if you
are considering this type of transaction.
Not getting it right could cost you a big chunk of the farm.
Choosing the right farm or ranch
broker will not only help you obtain a top price for your property but will
facilitate a smooth transaction. Keep
these six things in mind and you will be well on your way to choosing the right
broker for the job.
Look for my follow-up articles
discussing each of these in more detail.
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