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Published March 7, 2022
5 Tips for Selling Your Farm or Ranch
Whether your farm has been passed down for generations or you are a first-generation farmer looking to increase your investment, selling your farm property can be a complicated and stressful process. Here are some tips on how to get the best results when selling your farm or ranch.
Hire a professional.
Unlike urban residential developments, many rural properties have limited access to community water, electricity, and sewage networks. Additionally, services such as high-speed Internet or cable services that are readily available in the city or suburbs may be less reliable or more expensive to acquire on a rural property. Our team can explain what city services and utilities are available for a particular piece of land.Great Photography and Videos are key!
Like any real estate listing, farms and ranches benefit from professional, high-resolution photography that brings out their best qualities and attracts buyers. Gorgeous HD Photos and Video will enhance your opportunity to attract the most buyers. Our aerial tours are video taken with a drone that flies over your property to capture the full view. Aerial footage offers buyers a way to see your property without having to physically walk the land. Another big benefit of video footage of your home is increased exposure. When a video is included with your we use advanced search engine optimization (SEO) techniques to appear in online searches.
Get the property appraised.
Start by hiring a farm property appraiser to determine the value of your rural property. Make sure this appraiser specializes in agricultural land, as they will understand the specific factors of rural land, including water and irrigation, soil conditions, climate and crop yields, easements and zoning restrictions, and agricultural consumption trends.Consider leasing.
If your farm property has sentimental value, or you simply want to limit your direct involvement in maintaining the farm, consider renting out your property rather than selling it. This can help create a steady stream of income while ensuring you retain ownership of your property.Understand Tax Implications.
As a business entity, a farm is subject to a number of complex taxes in addition to those of a standard residential property. Whether you succeed in selling your farm property may depend on how well you prepare your tax returns. For example, different tax rates and treatments apply to different types of assets involved in the sale of a farm or ranch, including land, livestock, plant, and equipment. When attributing the sale price to your business assets, be sure to consult a professional tax professional.When you sell your land, you will have to pay federal and state taxes, which are usually due within one year of the sale. If the property is sold for more than the purchase price, you will have to pay up to 20% depending on your income. If you intend to purchase a new farm property, consider a 1031 exchange, which allows you to defer a capital gain indefinitely or until a replacement property is purchased.
