Putting your MT land for sale might be the hardest decision you will ever make. It may feel overwhelming and you might not know where to start. The good news is good land real estate brokers like, Venture West Ranches can help you every step of the process. We are here to ensure that you receive top dollar for your MT property and that the process is as painless as possible. Your blood, sweat, and tears have gone into making your Montana ranch what it is today. Venture West Ranches wants to make sure that you are fairly rewarded for all your hard work.
Selling your MT land is a lengthy process that takes patience and hard work. There are many things to consider when preparing to sell your MT land for sale. You want to attract the right buyer which means you need to emphasize everything your ranch has to offer. You want to make the buyer feel like they can’t live without your property. In order to make buyers eager to buy your property, consider the following to assist you with the selling process.
One question you may have is, how do I find potential buyers for my property? Actually, you want the buyers to find your property. This is all done through the marketing strategies implemented to sell your MT land for sale. Marketing a property can be a time intensive task. Outsourcing the marketing will allow a land real estate professional to take over the task of marketing your property. It will also provide you with more time to accomplish other tasks to prepare your property for sale. For more ideas of areas you can highlight look at the article: Montana Ranch Real Estate: Revenue Opportunities.
Whichever marketing route is taken, the way to attract buyers is by highlighting everything your Montana ranch has to offer. Is your property mainly used for agriculture, livestock, or recreation? Is it close to bigger cities or in an area that’s known for hunting or fishing? If you have superior agricultural land that has high income potential, it is important to emphasize this point to future buyers. Highlight the grazing management you have implemented which has prevented overgrazing. This will also attract more potential buyers to your MT land for sale. Evaluate whether or not your property has a healthy wildlife population and if you can use it as a selling point. Take a step back and look at your property and all the benefits it may present to buyers.
Property Income Streams
In an effort to attract potential buyers, inform them of the active income or primary revenue streams of your property. Active income comes from activities that provide the primary source of revenues that you use your property for. If you own agricultural lands, the primary revenue stream would be from the crops that you produce and sell. Another active income source could be the livestock on your property. If you have implemented a sustainable grazing process you can highlight this aspect of your property to potential buyers. If you are looking at selling the livestock along with the land, try and emphasize the desirable qualities of your cattle. Providing the buyers with as much information as possible will allow them to see the value. Therefore, emphasizing the benefits of your property will increase the price buyers are willing to pay.
Another way to attract buyers is by emphasizing passive forms of income. Passive forms of income are secondary revenue streams that come from activities that you do on the side to earn more money. One possible source of passive income could come from Water Rights. If you hold Water Rights, you have a valuable asset that buyers will be willing to pay for. Another secondary revenue stream could come from leasing the land. If you currently lease or future owners can lease the land, it will be of value when negotiating a sale. Mineral rights are also a very important source of passive income. Mineral rights can be kept by the owners or sold to the buying party. Another possible revenue stream could come from the wind if your property is in an area where wind turbines could be built in order to harvest sustainable energy. Even if you currently are not capitalizing on these secondary revenue streams, it is important to identify them and use them as a selling point for future buyers.
The next step in preparing your MT land for sale is to make sure that everything is functional and in good working order. You want the new buyers to see a well kept property. Start by fixing everything you can in the house. You want it to be ready for a new family to move in. Next, start fixing the outside of the house. A new coat of paint may be all it takes or maybe fixing the wobbly step on the front porch. Buyers are only going to notice the things that are faulty with the property which is why it is essential to fix as much as possible so that everything is in working order.
Once the house has been fixed up, move on to working on the outbuildings. By restoring outbuildings to their original condition, you increase the overall value of your property. Buyers are looking for a property that is ready for them to move into that will not require a lot of work to fix up. Maybe this means replacing some broken boards on the side of the barn or reroofing one of the storage sheds. All the work you put in will be worth it when finally selling your property. You also want to make sure that the property is as free of hazards as possible. Removing old, broken down equipment is one way of preventing hazards and making your property more appealing to potential buyers. Fixing up your property will increase its value and will help attract more buyers to your property.
Another issue you may be struggling with while placing your MT land up for sale is taxes. Selling your property is going to cost money in the form of taxes but the amount can differ depending on how you sell your property. If you sell the house and the land all together you could be taxed at a higher rate than if you separate the house and the land and sell them as two individual entities to the same individual.
Another thing to consider is a 1031 exchange. This tax form allows you to roll capital gains of your current property onto your next property so that you do not have to pay capital gains tax until later. This can be very helpful but is not for everyone. To discuss the pros and cons of each tax method, contact Buzz Tatom and he will be able to help you decide the right course of action.
More than likely you own some form of equipment that is used on your land. It is important not to forget about your equipment when preparing your MT land for sale. When you sell your equipment to the new land owner it is important to understand how the revenues from the sale of your equipment will be taxed. The sale of equipment is taxed at the same rate as ordinary income but the amount taxed is the difference between the selling price and the depreciated value. Venture West Ranches can help assist you with any questions regarding the process of selling your equipment.
When selling your Montana land you must be transparent with the buyer about everything you do have done on the property. You want to disclose all of the information that you know about your property. Even if this information could drive buyers away, you must inform them or else it could come back and bite you in the future. There can be legal ramifications for not disclosing information to buyers. To make sure you are disclosing all the information you need to, pretend that the buyer is a family member. Are you okay with everything you have told the buyer? Is it exactly what you would tell a family member if they were buying the property?
After the Sale
Another thing to think about when putting your MT land for sale is what you are going to do after selling your property. It is important to know where you are going next. Maybe you have purchased another ranch or you are downsizing. You want to have everything figured out so that when you transition from your current property to your next property is as seamless as possible.
There is a lot of moving parts and things to consider when selling your property. It can be overwhelming and can be a daunting task. Take your time and plan out as much of the process as possible. Above all else, don’t be afraid to reach out and gain some assistance with the process. Venture West Ranches can assist in every aspect of selling your property or get you in contact with experts to make the selling process as easy as possible.
Buzz Tatom is a Partner at Venture West Ranches. He moved to Montana 6 years ago looking to retire. That lasted 6 months. Buzz still owns the 5T ranch in Texas and has extensive experience adding value to ranches. He has a BBA from Texas Tech and an MBA from SMU. When not mentoring students or being a part-time professor at MSU, Buzz and his wife, Kathy are involved in a number of business ventures.