Are you thinking of selling your farm in northern Florida? The decision is not an easy one. You need to look into a number of details to ensure a successful sale.
Consider these tips on how to get the best possible results when selling your farm.
Work with a knowledgeable and experienced real estate agent
There are numerous issues to consider in selling agricultural property, including the pricing, deeding and titling, the timing of the sale, effective marketing, and more. A Realtor who specializes in farm and ranch properties in northern Florida can provide you with the guidance and support you need throughout the process.
Your Realtor can also help you determine if selling is indeed the right option for you, and present viable alternatives, such as leasing or conservation.
A Realtor’s expertise is particularly helpful if you want to buy or move into another farm after the sale of your existing one. If funding your new farm is contingent on the sale of your present property, your agent can help you devise a strategy that will allow you to stay on your farm for as long as necessary without missing out on the best opportunities that may come on the market.
In the northern Florida area, Ranch Finders Southern Homes and Farms is the team to call. Get in touch with them at 352.559.0964 or at this website, or send an email to info(at)ranchfinders(dotted)com.
Have your property appraised
Know how much your farm is presently worth. Hire a professional farm appraiser or a broker who can accurately assess the value of your property. Yield and productivity in the last few years are important considerations, but consumer trends in agriculture are taken into account as well. Other factors that have a significant impact on your property’s value include the location, the climate, irrigation, and soil conditions, as well as drainage, easements, and zoning restrictions.
Look into tax issues
Farms are subject to complicated taxes. The individual assets that come with the sale of your farm, such as cattle, land, equipment, structures, and others, may be taxed differently. Consult a tax expert to help you calculate these individual taxes and factor them in determining the selling price of your farm.
You can also ask a tax specialist about a 1031 exchange, which provides tax incentives when you use the money from the sale of your farm to buying another farm or a similar property.
Know when it’s the right time to sell
Timing plays a crucial role in selling a farm. Know the market conditions, including buying and selling trends, commodity prices, and other factors. Consider crop season, as well. Typically, owners sell after a crop season so they can close the year with sales from their crops and the property. Likewise, buyers generally prefer to start ownership of a farm before the start of the next crop season.
Consider how to position your farm on the market
Should you sell to other farmers or to investors? Selling to a buyer who intends to use the farm personally is simpler, but it could also limit your options. Selling to investors can be more complicated – there are a number of details to look into, such as a leaseback provision, a buyback provision, the investor’s ownership structure, and so on – but it can also increase your chances for a quick closing.