01
The process of listing a ranch is custom to the landowners specific needs, as well as the needs of the ranch's unique features. This initial meeting will cover the expectations & process used to successfully sell your ranch.
02
Being able to sell your ranch quickly is a matter of having all the facts and information from the source. Due to the uniqueness of your land, it is very important to the sale that you have at minimum the property surveyed, appraised, and present clear title.
03
A good ranch brokerage. present to you a concise marketing strategy, such as listing on the Land MLS and sending out targeted campaigns.
04
Although you may love your property the way it is, new buyers will be looking for a fresh face. Spend time preparing your ranch for sale by refreshing its appearance by shredding, burning brush piles, clearing out trash or old equipment, road grading, deep cleaning improvements, and removing clutter.
05
Work with your ranch agent to prepare a full folder of information and documents on file. For upcoming tours to grading all ranch roads and fence lines.
The total cost to sell a Ranch or Parcel of Land can amount to much more than the persentge of agent commissions most people expect to pay. When you account for closing costs, repairs, and other concessions to the buyer, the costs of selling can be closer to 10% of the sale price.
The price you want and what the market will pay can be two very different things. For the seller, it’s the sweet spot between asking too much or too little. If you can’t hit the sweet spot, you risk leaving money on the table or having your ranch sit on the market for a longer period of time, which can have consequences.
A long list of maintenance issues can turn buyers off and potentially decrease the value of your ranch. More importantly, buyers expect the condition of your ranch to match the description. Consider prioritizing the most glaring issues, particularly those that are likely to turn up during well, septic and improvement inspection—many buyers will require inspections before closing.
Once you’ve put your ranch on the market, you’ll have to try to cooperate when your agent wants to show. That could mean scampering out on Sunday for a private showing, or vacating for several hours—or most of the day—for a weekend ranch open gates. The goal is to accommodate as many buyers as possible, even if their timing is inconvenient. Some travel from out of the country and have limited time to take a look.
Many sellers don’t have a clear picture of their financial situation before selling. This can lead to painful surprises. Before you decide to sell, it may be helpful to assess your options with your CPA for a 1031- exchange tax deferment, tax penalties, income, debts, and any upcoming expenses during your move.
Before a showing here are a few seller rules to live by.
Sell your property quickly and fast with these seller etiquette tips.
You want prospective buyers to imagine themselves in your ranch and they can't do that with you there.
A barking dog doesn't set the tone for potential buyers as they tour your ranch.
Make it easy for visitors to park and view your ranch.
It's good seller etiquette to lay out recent good logs, surveys, septic or home inspections, appraisals, utility bills, etc. for potential buyers to view when touring your ranch.
This means, bringing in light by opening all the blinds, turning on lights, and bumping down the thermostat.
Make sure your home is tidy and smells good before having potential customers view your home.
You want potential buyers to imagine themselves in your ranch and it may be hard with for them to not ask for what they see. Ranch decor, taxidermy, artwork, and ranch equipment that you are not selling with your ranch, try to stash away and leave your ranch a "blank canvas" for buyers to imagine themselves in your home. Also, it keeps them from adding additional non-realty items and equipment to the deal.
06
The great thing about selling your ranch in a seller’s market is that there is often room for negotiation. Work with your agent to negotiate on your behalf to make and accept the best possible counter-offer.
07
Once a seller and buyer have reached a purchase agreement, they will enter into the option period. During this time, the buyer and seller will await the closing and move-out date, as well as addressing duties such as ordering a title report, scheduling an appraisal, survey, and inspection.
08
The buyer’s prospective land lender will typically require a property appraisal, to make sure that the negotiated purchase price was fair and paralleled to the actual property value. Be sure to keep your property clean and organized prior to the appraisal appointment.
09
If the property inspector discovers a serious underlying issue with the well, septic, improvements/ ranch home, the buyer will either negotiate repairs or reserve the right to back out of the deal if they are not comfortable with the results. If all contingencies are met, be sure to ask the buyer to lift contingencies in writing.
10
Prepare yourself with proper I.D. and to read and sign a large stack of documents with fine print. Once everything is signed by all parties, the property has officially been sold.
Ranch inspections are assessments of a ranch's physical structure and mechanical systems, including wells, septic, roof, ceilings, walls, floors, windows, doors, and even termites. The inspectors will check that major appliances are functional, scrutinize the heating/air-conditioning system, examine the plumbing, pump the septic, test the water well, and electrical systems, and may even poke around in the attic and basement.
The goal of ranch inspections is to uncover issues with the property itself.
Inspections are not a pass-fail exam. No fixes are mandatory after inspections, though it may uncover issues that prompt further negotiations or the buyers to opt out of the purchase.
A ranch/and loan appraisal is a licensed appraiser’s opinion of a ranch’s value. The appraisal is based on research of recent sales of comparable land in the area, an analysis of the property, and the appraiser’s judgment. The land lender requires an appraisal to help gauge the risk of making a loan. The property serves as collateral in case the borrower defaults, so the land lender wants to make sure the loan isn’t too big, compared with the property’s value.
An appraisal is an assessment of ranch value only. The appraiser considers the ranch’s condition as part of the analysis of how much the property is worth, as well as other factors, such as the local land market. The appraiser doesn’t include equipment, furniture, and some ranch structures in their analysis. If selling a "turn-key" ranch discuss the items that will not be included in the appraisal to avoid confusion.
The closing is an important day for you as a seller. You will transfer the property to the buyer, fully pay off any loans or liens, and receive your sales proceeds. If you are using the proceeds for a new purchase including a 1031 Exchange shortly thereafter, it is particularly important that your closing runs smoothly.
Unlike the buyer, who may have to attend the closing to sign original loan documents delivered by the lender to the closing, you, as the seller, may or may not need to attend.
After a completed closing, you are no longer the owner of the property. Unless the contract or another side agreement states otherwise, you must relinquish possession of the property by giving the buyer all keys, garage door openers, and all other devices that control the ranch’s systems and appliances. You are expected to have completely moved your ranch and your livestock out by this time as well, and left the place broom-clean, at a minimum. Absent an agreement with the buyer that allows you to stay longer, you can be evicted, or the buyer may sue you for damages caused by your breach of the sales contract.
THE BREAKDOWN
Below we’ll also spell out the main types of fees you’ll see on your balance sheet so you can understand each cost:
A determination of the value of something, in this case, the property you plan to sell. A professional appraiser estimates by examining the property, looking at the initial purchase price, and comparing it with recent sales of similar property.
This is the dollar value that a public tax assessor assigns to your ranch land for the purpose of county taxes, timber, wildlife, or ag exemptions. This value is separate from a land loan appraisal value or a broker’s price opinion.
All settlement or transaction charges the buyers & sellers need to pay at the close of escrow when the property is transferred.
A provision in a contract stating that some or all of the terms of the contract will be altered or voided by the occurrence of a specific event, usually by specific dates leading up to the closing.
The holding of funds or documents by a neutral third party prior to closing your home sale. This is typically done by a title company.
An examination of the condition of a real estate property. An inspectors assesses the condition of a property, water, wells, heating/cooling systems, plumbing, electrical work, and septic systems.
Commonly referred to as MLS, it provides ranch real estate professionals with details of listings currently on the market. The public can now access much of this info on Lands of Texas, Lands of America, and Land Brokers MLS
Is written into a real estate contract to give a buyer a specified number of days in which they can terminate the contract and be refunded their earnest money deposit.
Ownership of real estate or personal property. With real estate, title is evidenced by a deed (or other document) recorded in the county land records office.
Led by the state's leading expert, Lindsey Hollin, our farm and ranch brokerage is characterized by an unwavering dedication to our client's success. With Lindsey at the helm, you can trust that you're working with the most knowledgeable and respected professional in the field, ensuring your farm or ranch transaction is nothing short of exceptional.