How to Sell Farmland

Marketing and photos of farmland important during the sales process.

Selling farmland involves all of the same strategies used when marketing home or commercial property. Photos and advertisement formats are similar regardless of the type of property being sold. In addition to standard forms of real estate property marketing, farmland requires additional documentation relating to crops produced and land formation details, including irrigation or water features available on the property. Although it's possible to sell land without the aid of professionals, it generally takes longer and doesn't always garner the top selling price.

Things You'll Need

• Real estate agent Property appraiser Photos of property Legal documents of ownership and property tax card information Survey of land

Instructions

How to Sell Farmland

1. Hire a real estate agency that focuses on rural or farm properties. Listing property with a professional real estate agency provides additional exposure for the farmland, as well as outreach services to a larger network of pre-approved buyers and financial lending institutions to aid with the property sale and closing. Sellers do not pay any upfront money to real estate agencies--only an agreed-upon commission percentage of the final sale price.

2. Hire a real estate appraiser. Find out how much the land and crop-producing capability are worth. Financial lending institutions only lend money on the current market value of a piece of property, as established by a real estate appraiser. An appraiser uses sale prices of comparable properties in the same geographic area to establish fair market value of a piece of real estate. Sellers who don't secure the services of real estate professionals often make the mistake of establishing a sale price which is too high, making it impossible for a bank or mortgage company to approve the loan. Appraisals typically cost between $200 and $500 each.

3. Survey the property, marking the property borders with pins or flags. Buyers will want to walk the farm acreage, and real estate agents will need to show proof of land parameters. Banks and mortgage companies usually require a professional survey of property before loan approval is granted. Survey prices vary depending upon the number of acres to be walked and marked.

4. Take photos of the land, structures and crops during growing season if possible. Real estate agents will use the photos to attract buyers to the property. Most agents will offer to use their own high-quality digital camera to take photos of the farmland. The seller should accompany the agent during the picture-taking process, pointing out attributes of the land and offering crop and irrigation details to be added to the farm land listing.

5. Gather all legal documents pertaining to the farmland for agent and lending institution use. Documents detailing information of deeds, easements, mineral rights and property taxes will be required at the sale closing, and can take several weeks to get copies of and review. Early preparation will keep the sale closing on the fast track and prevent last-minute obstacles.

Resources

• Land Flip website to connect buyers, sellers, and agents