Family farm to sell

[Dot57]

I am the trustee of my parents estate which includes a farm in an area transitioning to data centers (Facebook and Google) are now adjacent). We have not listed the land for sale but have received a few inquiries from land developers over the past 2 years and a very lucrative offer that went into contract but fell through after a year when the interest rates jumped. I am leary of engaging an agency because of the high demand for the land (it lies along a 4 lane highway) and because of the high commission rates. Are there other avenues for listing the land for sale? We currently have a large developer doing due diligence before they make their offer. I want to leverage our situation as much as possible. Suggestions? Thank you in advance.

 

[Ronstar]

Put a big for sale sign on it. I helped a friend put up a 4'x8' vinyl sign on a piece of plywood along the frontage of his place.

Make a flyer with site data, location, etc and leave copies at the local chamber of commerce, local manufacturers association and others.

 

[street]

Advertise like Ronstar has said. If you find the right buyer and the right price you are looking. Have your legal counsel do the contract.
I would never go through a real-estate company to sell or buy a property.

I have bought and sold numerous places through the years. I know this method won't be very popular here because of past threads on this subject.

So, just my 2¢ what has worked for me, and I saved a chunk doing so.

Good Luck!!

 

[DuluthGA]

I’d get a commercial appraisal done to have a reference point for pricing. Local government may have a development office that recruits business to relocate there you can notify.

 

[catii]

You will be amazed at how much interest a simple sign will draw! I had 40 acres of bare land somewhere near Yuma, Arizona. I had my Phoenix-based sister post a 2'x3' sign that 20 acres were for sale, as we live in Hawaii. I had two offers within a week, & ended up with five, before I chose an offer that was more than all the other ones, combined. Turns out that there is quite a bit of oil in that area, so I'm glad that I held onto the other 20 acres!

 

[imnontrad]

Look for a realtor that specializes in commercial property and has a track record. You can negotiate the commission.
But even though it may seem high, look at the percentage, not the dollar amount. That realtor will help you negotiate for the best deal plus handle a lot of the sale paperwork. Those alone may pay for all that commission rice.

 

[latexman]

I’d get a commercial appraisal done to have a reference point for pricing. Local government may have a development office that recruits business to relocate there you can notify.

You may also need an appraisal as of the date of death of the last surviving parent, as a cost basis.

 

[imnontrad]

>You may also need an appraisal as of the date of death of the last surviving parent, as a cost basis.

The REAL advantage of this is after you have an appraisal at the death date for the stepped up basis, there is a chance that you can sell the property and after paying all the selling costs (including a realtor commission), each seller may find that they have a loss to claim on their income tax return (selling price - stepped up basis - selling cost) that will make a decision to get a professional realtor even better.

 

[Stormy Kromer]

You need an advocate. I'd suggest a public auction with a well qualified auction company. Ask them if they have buyers in their contact list.

I'm a farmer/slash land owner. I watch the values of land sales daily. Competitive bidding auctions with reputable auction companies has yielded more than any method I've seen.

 

[MC Rider]

An appraisal seems a good idea for more than 1 reason.
Are you sure of the highest and best use of the property?
Does not sound like farm is it anymore.
You should be at least familiar with the idea and alternatives.

 

[pb4uski]

I am the trustee of my parents estate which includes a farm in an area transitioning to data centers (Facebook and Google) are now adjacent). We have not listed the land for sale but have received a few inquiries from land developers over the past 2 years and a very lucrative offer that went into contract but fell through after a year when the interest rates jumped. I am leary of engaging an agency because of the high demand for the land (it lies along a 4 lane highway) and because of the high commission rates. Are there other avenues for listing the land for sale? We currently have a large developer doing due diligence before they make their offer. I want to leverage our situation as much as possible. Suggestions? Thank you in advance.

Sorry to respond so late on this. First, you need to get an appraisal to support the stepped up basis and also as information to make sure that you are getting a good offer for the property. Since it seems to be a hot property, you could do a for sale by owner (put out a sign, ads online) or perhaps a listing with one of those fixed-fee real estate agents that just get you access to MLS.

I am trustee of my parent's trust and mom died last November. We knew we had to get an appraisal for stepped-up basis purposes. IIRC that cost $2,600. Once we had that in hand I approached our long-term single tenant and asked if they wanted to buy the building. They did. We have agreed to terms (actually a litte more than the appraisal result) and we should be under contract any day now.