Get Your Finances in Order

Selling land is a significant financial endeavor. There are many moving pieces involved. It’s crucial to get your finances in order before going to market.

“Make sure you talk to your accountant or financial advisor and plan accordingly,” said Matt Palmquist, a Whitetail Properties Land Specialist in Kansas. “You must know what to expect. A lot of times people don't, and when tax season rolls around, they're in scramble mode. So, I always try to tell people to have those conversations in advance.”

Complete Necessary Property Surveys

Most individuals should examine whether or not they have a current and accurate property survey. Finish other similar objectives as well.

“Complete surveys, and other things like that,” said Ashley Kurtenbach, a Whitetail Properties Land Specialist in South Dakota. “Gather all the paperwork. For example, if there are multiple owners, have the power of attorney paperwork signed alongside the listing agreement.”

In some instances, it might be less important to complete a survey. Ask your Land Specialist if it’s something you should pay for, or not.

“As far as surveys, and things like that, in Kansas, I don't always push for that right out of the gate,” Palmquist said. “Sometimes, it’s not needed. We do a lot of stuff without surveys. So, every state is different.”

Consider Real Estate Regulatory Hurdles

Sometimes, regulatory challenges must be worked around. It might demand working well in advance to check key boxes before putting the “For Sale” sign in the yard.

“In the state of Maryland, where I work, you can only do a perc test at certain times of the year,” said Dustin Prievo, a Whitetail Properties Land Specialist in Pennsylvania. “Contact a Land Specialist early enough so they can maximize the value of your property.”

Essentially, think long term. Do you want to sell in the next 10-12 months? Tell your Land Specialist. They’ll keep things moving along at the right pace.

Conduct General Cleanup and Maintenance

Palmquist says, with good recreational land, to get your property looking as good as possible. Do some maintenance. If physically capable, knock that out or hire it done. You’ll earn that money on the back end. For example, from the land management standpoint, complete important tasks, such as mowing, spraying, and more. This shows potential buyers the property has been cared for. That goes a long way with people.

“I always tell people to clean up any junk that’s laying around. Complete any unfinished projects,” Kurtenbach said. “As the listing agent, I need that stuff done. Clean up clutter around the yard and any junk in the vicinity. I even like to have equipment moved and staged before I photograph it. For example, one client I have right now has a horse barn, and there's a part of the lean-to that's not constructed. He’s finishing that now.”

Spruce Up the Country Homes

Does it have a house on it? Properties with country homes can be immediately upgraded with some interior and exterior paint. Generally, Kurtenbach wants it freshly painted, especially if it's a country home in good condition.

“A lot of times, when we live in the country, it just needs some fresh paint,” Kurtenbach said. “That's not something that's done overnight. So, if it needs paint — paint it.”

Highlight the Property’s Best Attributes

Sellers should take a step back and ask themselves, and their Land Specialist, what their land has to offer. Is it tillable ground? Is it a prime deer hunting tract? What’s its best use?

“Ensure the property is set up to maximize key points of it,” Prievo said. “For example, I had a house on 16 acres. We got there, and it had a pond and creek. There was no way to walk down to the pond. There was no trail to the creek, and those could be huge selling points.”

Because of this, Prievo worked with the seller to clean things up and highlight that property’s best attributes.

“We came to an agreement, and I showed up with the tractor,” Prievo continued. “We cut out around the pond and made trails down to the pond and creek. That's what sold it for over asking price.”

Spotlight the Property’s Most Relevant Niche Attraction

Some properties have unique value due to use types. Examples include deer hunting, waterfowl hunting, and more. So, is your land a niche recreational tract? If so, it’s important for the landowner to assemble trail camera photos, harvest photos from the property, etc.

“Contact the Land Specialist, because we can see the property as it sits — the painted canvas of the late- or post-deer season can make the difference,” Prievo said. “We have thermal drones and we can also go out and do a deer density study while the canopy has no leaves. We can get a good idea of how many deer are in the area.”

A history of habitat management can help with the sale, too. Without question, a better setup can add increased value and elevate interest within the buyer pool.

Add the Extras That Attract Potential Buyers

Implement all of the extras that can help maximize the value of the property as well. Establish driveways. Plant screens along borders to block views of the neighbors. Complete the small things such as these and more to maximize the value of the property. Then, showcase the key elements of the land.

Assemble All Relevant Property Ownership Costs

Pull together all relevant property ownership cost reports. What are the property taxes? Are there existing pivots? If so, what are the irrigation and electrical bills for the year?

“I like to have the bills, especially for irrigation districts, and electrical bills, if you're running pivots, presented to me upon signing the listing agreement,” Kurtenbach said. “You might have a $7,500 irrigation bill plus, in the highest month, $1,400 for electricity, and that’s just for two pivots. I want that gathered so I can determine an average annual cost. It helps figure out price-per-acre as well.”

Prepping all paperwork, and being completely organized, makes the process easier for everyone. This makes life simpler for the seller, buyer, listing agent, broker, and all else involved in the process.

Generate a Crop Production History Report

Most agriculture-centric properties sell to individuals looking to continue farming the land. These individuals often require important crop production history reports, though. Example reports include crop yields, soil quality, rainfall totals, and more.

“I like knowing the crop history, especially if you have years of crop production. Of course, the more information the better.

Address Existing Property Leases

Existing property leases can help or hurt the real estate selling process. Some buyers want lease continuation, and others do not. Thus, be open about potential leases and talk to prospective buyers.

“If there's a current grazing lease, figure out what month it's expiring,” Kurtenbach said. “Determine what the future plan is for that lease. It’s the same with hunting leases.”

Some buyers might prefer you to maintain the leases. That way they can benefit from the passive income after closing. That said, not all buyers want that. So, it’s important to communicate with them to make things as smooth as possible.

“I have one seller who decided to cut the lease off so as to not have to worry about a third-party,” Kurtenbach said. “If I need to get a deal locked up quickly, with possession dates and similar factors, these things can cause issues.”

Address Potential Problems That Might Interrupt the Selling Process

Address any and all potential ownership challenges. Focusing on this can help prevent unnecessary hiccups downstream.

“For instance, if it goes from trust to trustee, parent to kid, or inherited in any manner at all, I order a preliminary title commitment,” Kurtenbach said. “This helps make sure that we don't lose a deal and find unexpected problems two weeks before closing. Because delays often cause buyers to walk away.

“Most of the time, I get that title information figured out ahead of time,” Kurtenbach continued. “Sometimes, I'll call the county myself to check on where it's at and see if there are any gaps.”

The above scenario is only one of many things to consider, though. Does the landowner, or someone else, have livestock on the landscape? “If they have cattle on a property, and they're wanting to sell fast, what is the timeframe for getting cattle out of there?” Kurtenbach said.

Just last week, she asked a seller who listed with her:

“If we were to close before the end of the year, could you get 450 head of cattle out of here?” she asked.

“I'll call the trucks tomorrow,” he replied.

The point? Time is of the essence. Timeliness matters. And when additional factors, such as multiple owners, livestock, and leases are involved, it’s important to make necessary plans to prevent procedural interruptions.

Determine What You Need to Get for the Property

Finances are incredibly important. Get a feel for your situation and know what needs to be done to complete the transaction in the best possible manner. Know how much money you need to get to come out in a positive place after the sale.

“When I do a listing price, I always need room for negotiations,” Kurtenbach said. “If it doesn't sell, I will be coming to the seller for a price reduction. I need room for that. If you tell me what you need to walk away with, and we list it too close to that, that doesn't give me room to do my job.”

Consider Important Financial Moves, Such as the 1031 Exchange

Interested in the 1031 exchange? Unsure as to how it’s done? Kurtenbach assists with that. She can even connect buyers and sellers alike with individuals who specialize in the implementation of the 1031 exchange.

“You must have a plan,” Kurtenbach said. “Be looking at other properties. Before your land even goes to market, you should be looking at other properties and have it all figured out.”

Contact Your Local Whitetail Properties Land Specialist

Finally, contact your local Whitetail Properties Land Specialist. They can help make your land selling experience significantly more rewarding than a run-of-the-mill real estate agent who specializes in residential homes, rather than land.

“Hands-down, work with a Whitetail Properties Land Specialist,” Prievo said. “They will know the area, zoning, buyer pool, highest and best use, value of your property, and much more.

For example, you have 9 acres. It might do better by dividing it into three 3-acre lots. You could sell those for more as residential offerings, which maximizes the value. In other circumstances, that might not be the best route. But your local Land Specialist will know. No matter your circumstances, contact them today.