Timing is everything
The old adage ‘timing is everything’ is certainly true in farmland decisions says Elders Real Estate senior rural executive WA, Simon Cheetham.
“A sceptic may put wins down to good luck,” he says,
“However it is good management and the ability to leverage seasonal and market conditions to your advantage that sets the top operators apart. When you’re thinking about selling the family farm, timing is also crucial.”
Selling the farm is a major financial and emotional decision, with the needs and wants of the owner often being juggled with those of a wider family. The decision is hard, conversations can be awkward and unanimous decisions are not always easily achieved, therefore the decision to sell can be put off.
Delaying the decision to sell for too long can lead to bigger issues, especially when a catalyst such as health issues, relationship breakdown or cashflow issues to force your hand.
Farms are an asset that need to be maintained, so if the ability or interest in maintaining the condition of fencing, buildings and the health of soils wanes over time, affecting the presentation and desirability of a property.
Therefore, developing a plan and being in complete control of the decision and the timing to sell the farm is important.
This is where a professional real estate agent can add value. They will:
- provide an up-to-date appraisal of your farm,
- summarise the state of the market in your particular area, and
- use recent comparable sales to arrive at the likely sale price of your property.
With this knowledge you are better placed to start making decisions and planning your future.
If you decide to put the farm on the open market, the agent can tailor a timeline for the work required to be done prior to the marketing and the advertising campaign commencing.
Your agent will also provide recommendations on the method of sale and a sale process that will result in the best outcome for you. This may be that the farm is offered in parcels, or sold a whole. If a subdivision or realignment of boundaries will add significant value, then prior planning becomes even more important.
In recent years, having a five-week advertising campaign running sometime between July and September has proven to be a highly effective process to sell many broadacre farms. This is not a blanket rule however. A skilled real estate agent is able to guide you through your options and negotiate with buyers to ensure you achieve the best possible outcome.
Elders has a team of real estate professionals ready to help you buy or sell farmland.