For years farmlands have been bought and sold repeatedly. The process for selling farmland has changed in accordance with state laws over the decades. In this blog post, we will take you over the details of selling farmland. You should be aware of the various reasons why one would sell farmland and what elements should be considered when doing so. You would also be given a brief comparison between public auctioning and the selling of land independently so that you can decide which method is the best way to sell farmland.
Common Reasons to Sell Farmland
There are various reasons as to why one would decide to sell their farmland. One of the most common ones that have been seen over the years is the need for money. It is a widespread practice to sell farmland to find one’s way out of a financial crisis. Sometimes, after the harvest season ends and all crop has been successfully extracted, some farmers want to sell their agricultural land. Another common reason for selling farmland is the death of the owner of the land. The land is then sold, and the proceeds are distributed as an inheritance to the heirs.
Public Auction VS Traditional Selling
Now landowners can only sell their entire property at once, so they want to maximize the outcome they receive from it. All farmland carries some sort of emotional sentiment that an owner has to set aside when selling the farm. It is common for there to be an emotional attachment to farmland which may have passed down for generations in the same family. This emotional bond to the land is why you need to make sure that you recognize all your options and understand them entirely to choose the one most suited for you.
Auctioneering has been a method of selling for many years and has also proved to be somewhat of recreational activity for those that had the money to spend countless afternoons smoking cigars and cracking jokes.
However, for landowners, public auctioning is a great way to sell their land as the owner can decide on a date when he wishes to sell his property and set terms and conditions without interference from the buying end. The advantages of this single factor could not be emphasized enough. There is nothing quite like selling what you want on the terms that you want. The way auctioning works is that a standard market price is set on the land, and then the bid price continues to be leveled up until there a victor throws out a price that no one can match. The great thing about a public auction is that it can be wrapped up in a matter of minutes and compels the bidding participants to bid in a relatively narrower range. Public bidding is a great way to sell farmland as it allows the land to receive as much exposure as possible; the more exposure, the more chances of getting a higher bid.
Not too long ago, online auctioning had been brought to the scene and has boosted since the pandemic peaked. Now you must be wondering what the best way to sell agricultural land online is? Online bidding is very similar to a traditional public auction. Online bidding helps you get a higher bid as buyers are not stressed out. Traditional auctions require raising a bid card as the auctioneer continues to attempt to raise the bidding. That can be nerve-wracking and intimidating for some not familiar with the auction process.
Traditional Selling (One on One Dealing)
Now the traditional method of selling agricultural land is the one that consists of a traditional listing or accounts for a private settlement. The traditional listing calls for the buyer to put out their land on the market for sale. The owner also specifies some conditions such as the time bracket and all.
The reason people out there still prefer this method because through this, you can market your property more and hence engage a larger buying pool. The period in which you have released the offer in the market to the time you stop taking offers, this duration is more than enough to attract the attention of a suitable buyer.
Tips for Selling Your Farmland:
- Gather information: You must know whether you can sell this land or not and who is listed as the owner in official papers. Sometimes deceased parents show up as the owners on the deed; make sure to correct this legally.
- Consult a real estate agent: A real estate agent will let you know the market value of your land, help you establish a fair price, and help with advertising that your land is for sale.
- Collect data on your land: You should be well informed about your land details, such as harvest history, pasture sizes, etc.