Selling your farm can be a difficult process, both from a business and family perspective. Whilst you might run into emotional conflicts with your family members who have an attachment to the farm or hold heritage in it, one of the biggest obstacles is securing a buyer.
With buying a farm as an investment, there can be doubt surrounding the purchase. Namely, if the buyer goes through with it, will they make a return on their investment? They’ll also be wondering what sort of returns they can expect and how long it will take them to generate income. Even then, will that income be stable enough to live from?
There are several different aspects you need to carefully consider prior to selling your farm. In addition, there are several points that act as instant turn-offs for prospective buyers. We’ve created this article to give you an overview of the 3 main points you can focus on to ensure your farm can be marketed as an appealing package. If you can nail these steps, you’ll greatly boost your chances of getting a good deal on the sale of your land.
Presentation is key
If there’s one thing that will drive buyers away, it’s a lack of presentation from the seller’s side for a property visit. Picture this: you’ve seen a house listing on the internet and liked the pictures and price, so you arrange a visit in person. As soon as you step through the door, the place is a mess. Will yourself – and other prospective buyers – remain open-minded about the property? Most of the time, unfortunately not.
With selling property, first impressions really do count. Within the first minute of visiting your farm, the prospective buyer will have formed 80% of their overall opinion about your property. For that reason, it pays to be prepared for visits. That means no loose twine hanging around, no broken gates or fences and definitely no dead animals. Not only is this a hygiene risk, it’s also probably the worst indication you can give of your farm’s success.
Be prepared for every outcome
This doesn’t just mean from a business perspective – you need to prepare yourself emotionally too. Selling a farm is a big deal, especially if it’s been in your family for several generations. Your spouse and distant relatives will likely be upset that the farm won’t keep on under the family name as it has done for years. If you have kids, they’ll likely be hurt by the fact that they’re losing a significant chunk of their inheritance and potentially even a secured future career.
It’s okay to show emotion during the sale process – buyers like to see that owners have an attachment to a property, because it helps them to see themselves cultivating memories there too. Being clingy, however, is going to put buyers off. Make sure you have your emotions under wraps and that the whole family has agreed on a unified set of goals before you list your farm.
You also need to get your business decisions tied down. Before you list you need to know what price brackets you’re working with for sale – what upper number you’re aiming for and what the lowest offer you’ll be willing to accept is. You should also have a clear idea of when the property will be available.
Provide proof on your farm’s success
All the talk in the world isn’t going to beat good old-fashioned data. If you can provide verifiable stats on your farm’s production for the past 12 months, prospective buyers will be immediately more at ease when considering a purchase. Since potential income generation is one of the biggest objections a buyer can have with a farm, take that off of the table by proving your property’s previous successes.
Getting these three points right will help the sales process to run smoothly on both ends. By accommodating for the buyer with these points, they’ll be able to assess more easily whether your farm is a good match for their requirements.
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If you have questions about buying or selling real estate or would like to speak to a real estate agent, contact us today. We’d be happy to offer advice.