Owning and managing farmland can be extremely rewarding. However, there may come a time when you want to sell your agricultural land. When that time comes, you want to make the right steps necessary to get everything your land is worth. To help, we’ve listed out our top three tips when it comes to selling agricultural land.
Research local land value
You want to make sure that you’re getting what your land is worth. The first step you should take, then, before putting your land on the market is to check what other properties are selling for in your area. If you live in a farming community, consider talking with neighbors or other business partners to see what their land was worth. Additionally, talking to an agricultural broker can help give you further insight. A broker will have tool and resources that you don’t have to get you a personalized market analysis.
Look at your cash position
Agricultural land provides a steady income. While selling your land will provide you with a large amount of cash, you will be losing a long-term revenue resource. You’ll want to look at your expenses and project what your life may look like over the next few years. This will help you determine if the cash you receive from the sale (and the loss of steady income from losing agricultural property) will be enough to support you.
Check for liens
Do you have current liens on your property? If so, this could affect the sale. A mortgage will not hurt your sale, but tax or penalty liens will. You’ll want to check in with your county recorder or title company to ensure that you don’t have any outstanding liens on your property.
Published on 2022-03-16 06:00:23