If you’re looking to sell your farm in the next few years, now’s the time to start planning and preparing for the sale. The sooner you seek advice and start making improvements to your property, the better chance you have of selling it easily – and for a good price.
To make it easy, we’ve covered 7 key areas of selling a farm, including how to navigate valuations, the sales process, sales methods, and local market trends. No matter what type or size of rural property you have, find all the advice you need below.
How to sell a farm
In this article, we’ve outlined the 7 key considerations you need to make when planning to sell your farm or rural land, including:
- The local market
- Long-term exit strategies
- Farm sales methods
- Financing solutions
- Rural property valuations
- Farm infrastructure
- Rural real estate experts
1. The local rural market
Before listing your farm for sale, you need to know how the local market is performing and what the current buyer’s mindset is. For example, is forestry land in high demand? Is it in the middle of peak dairy season? Once you know these details, it is easier to know when the time is right for your farm to be listed.
If you want to learn more about the rural sector, the rural team at McDonald Real Estate are here to help.
2. Long-term exit strategies
Whether you plan to sell immediately or decades in the future, you need a long-term exit plan with clear timeframes in place. To do this, we recommend working with a local rural expert to assess potential changes or developments you could make to your farm.
This will ensure the best chance of selling, regardless of market conditions at the time of the sale. As part of your exit strategy, a long-term maintenance programme will ensure everything is kept up to date so that only a few small touch-ups are required when the time comes to sell.
3. Farm sales methods
There are three key ways to sell a farm – auction, tender, and asking price. An auction is a public sale where the property is sold to the highest bidder, provided the seller’s reserve price is reached.
When selling by tender, buyers make written offers to the agent before a set deadline. With an asking price sale, buyers can make offers at any time and the vendor can choose to accept or decline.
4. Financing solutions and negotiations
Increasingly, we have been seeing more and more farm purchases with vendor financing solutions. This allows you to attract more buyers to purchase your farm when it would otherwise be out of their price range. This could provide you with an ongoing income until the buyer can pay the remaining debt.
5. Rural property valuations
By having a skilled property valuer assess your farm, you can determine how much it is worth in the current market. This typically involves a thorough inspection and a detailed report of local market information and the valuer’s objective opinion.
In addition to listing your farm for sale, rural property valuations are helpful when making other farm-related decisions, such as for insurance calculations, tax purposes, or financial reporting. Ask your local rural expert for an accurate farm valuation today.
6. Farm infrastructure upgrades
It’s fairly common for farmers to let maintenance slide when they know they’re going to sell their farm but buyer’s mindsets are changing. Now, they’re looking for more than just the land – they also care about how the farm operates and how the existing infrastructure supports daily operations.
To attract offers when you decide to sell, the buildings, infrastructure, and consents all need to be up to spec. We recommend investing time and resources into your farm’s infrastructure, whether you are selling now or in the future.
If there is a house on the land, its condition could be a deal breaker for prospective buyers. For example, a simple paint job or heat pump can have a significant impact on a buyer’s decision.
7. Find a rural real estate expert
A rural salesperson is trained to assist you with the process of selling your farm and can influence your sales price by thousands of dollars. Their key duties include networking with buyers, conducting market research, organising viewings, and marketing your farm to potential buyers.
If you are in Taranaki, the team at McDonald Real Estate is here to help. We’re dedicated to providing a seamless experience for our clients, drawing on our many years of experience in the rural market.
The key advantages of working with us include:
- Free valuations.
- A vast network of buyers and agents.
- Effective marketing packages.
- 8 convenient offices around the Taranaki region.
- 110+ years of local experience.
If you want to know how much your farm is worth right now, schedule a free, no-obligation appraisal with us. We’ll draw on our expertise to provide you with an accurate valuation and share personalised advice for your exit strategy.
The McDonald Real Estate Rural Team
If you're planning to sell your farm, see the farms for sale in Taranaki for inspiration. Or reach out to your local rural experts to prepare your farm for sale and get advice on which sales techniques will be most effective.
