Let's Talk Farmland


Today, we’re diving into a sector of commercial real estate that might often go unnoticed or overlooked, farmland. Brokering the sale of farmland happens to be one of my specialties. I have had the opportunity to help many clients in the North Central Indiana region. On its face, the sale or lease of this property type might seem simple, but often, many layers of difficulty and moving parts make up a farmland transaction.

Unfortunately, most farmland changes hands when there are significant life changes in a person's life, namely death or divorce. Farmland is one of the most tightly held commercial real estate assets, making these transactions sometimes emotionally difficult, complicated, and legally complex.

One common scenario would be inheritance. Family dynamics can add any number of complications to a real estate transaction, but let’s say four children inherit the family farm.  There is now the potential for strong, conflicting emotions among the children, and any challenges could arise. Should the family sell the property? Lease the land? What if two siblings want to maintain ownership? What if one sibling wants to buy the rest out? Even among family members, navigating difficult situations can be a huge factor in a farmland transaction.

No matter what the situation surrounding a farmland parcel/portfolio might be, determining the land’s value is the first step if the owner(s) is looking to sell or lease their property. After years of experience and successfully selling and leasing farmland, I’ve become well versed in determining an unvarnished but professional opinion of value AND proper lease rate to ultimately reach success for the owner(s).

If you (or someone you know) is unsure of how to handle an unforeseen circumstance or complicated situation, don’t hesitate to give me a call. You would have an aggressive, knowledgeable real estate professional in your corner & fighting for your best interest each step of the way.  

I can be reached six days a week by call or text to 765-427-5052. Let’s talk casually, get to know each other, and discuss your goals & objectives. I promise to only provide an honest, professional opinion about how we could reach those goals & objectives together, I will not hound your with incessant phone calling or emailing, I’m only here to help YOU!

Comments

Post a Comment

Popular posts from this blog

A Listening Ear.

Image
  Compassion is a helpful quality in many professions; however, when you think about commercial real estate, compassion may not come to mind.  Let me tell you a story. I was recently asked to visit with a potential seller to discuss a property they were considering putting on the market. Prior to our meeting, I had been briefed on the situation, did some preliminary research, and felt confident I would get the listing and make the sale. When I arrived, the prospect had a different idea. She had just lost her husband, who, according to her, was the face of the business. The conversation centered mostly around the man her husband was, what he meant to her, how much she missed him, and everything he had poured into their business. This woman was looking for a friendly ear, so I listened. How could I not? Towards the end of our visit, we did transition to why I was there and got down to the business of it all. I left with the hope that I was able to provide her with good, dependabl
Read more

A Commercial Building Sale from Soup to Nuts

Image
  Selling a commercial building is not something that is done spur of the moment. There are only a few reasons why an owner would choose to sell a valuable commercial building. #1 Retirement. The owner retired and sold their business and no longer needs the building. #2 Expansion. The owner may have outgrown the building and is purchasing another building. There is an immense about of thought and tax planning that goes into selling an established commercial building. But, once the decision is made to sell, the owner selects a commercial broker to handle the marketing and sale of the property. The next step is to d etermine the asking price with your broker. This is where it gets really interesting… The asking price is crucial for attracting potential buyers. Some brokers may suggest a pie-in-the-sky value just so they can secure the listing (A horrible idea ). However, a more prudent approach is to price the property approximately 15% above the market value to maximize the return. Th
Read more

Prospecting: The Thoughtful Way

Image
Prospecting: The Thoughtful Way In any kind of sales, especially commercial real estate, you will most likely need to do some kind of prospecting for new clients. An old mentor of mine once said that new business doesn’t just walk in the door all the time, and wow, is that true. When you think of prospecting, the first thing to come to mind is probably the dreaded “cold call”. Everyone knows what I’m talking about, whether you’ve received them or done them yourself. The pitch for the latest service, investment, or product always seems to be the same and generally ends the same as well, without commitment. Instead of blind, cold prospecting, what about taking the time to research potential clients, obtain a base level understanding of their property, and make a “warm call”? What would that look like? Try sending an introductory letter or other mailed version of outreach. Perhaps include a photo or map of their property, including comparable sales, other current listings, and/o
Read more