Selling a farm is not the same as selling a residential property

The biggest difference between selling a farm versus selling a residential property is the motivation of buyers.

More often than not, the potential buyer for residential/lifestyle property is motivated by emotion.  They want to feel an emotional connection to the property and a residence can be modified to suit the intended market.

Farms are different. 

Yes there can be emotion, but more often than not buyers are looking at income.  So when selling you need to think like a buyer and market your asset during the most opportune window.

Unfortunately this can be a Catch 22, as at the perfect time to maximise the sale potential of a farm can also be the most tempting time to stay.  All the components that attract a buyer such as good season, strong commodity prices and low interest rates are the same points that subconsciously impact your decision to sell.

When it comes to property presentation, painted gates and tidy lawns are attractive and help with marketing, but they don’t give income on a purchased asset.  The most important factors to think about when selling are:

  • Seasonal conditions,
  • Paddock history,
  • Rotation,
  • Currently growing crops,
  • Agronomy data, and
  • Condition of working improvements (yards, silos, contours, sheds, waterways etc).

The time of year in relation to the production cycle should be considered.  Farming country is ideally marketed at planting time and grazing country traditionally sells well during spring. But given that spring is a very small window, you need to be organising well in advance to hit the sale sweet spot.

When thinking of selling a farm, my best advice is to try to take emotion out of the picture. Critically appraise the strengths and weaknesses of your asset and source professional expertise for a marketing strategy.  Stick to your plan and reap the rewards.

Michael Guest

 

 

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Posted on Monday, 28 September 2020
by Michael Guest in Latest News
farm for sale marketing strategy rural property selling farms
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