When you look at real estate you usually have residential, commercial and then farm and ranch. When you are looking at Montana home and ranch realty, the house is always in play. Clients that are selling or buying a Montana farm or ranch have to consider the residence. We find, in a lot of cases, the home is given very little consideration by a buyer but means a great deal emotionally and financially to a seller. So here are some things to consider for both buyers and sellers.
If you are a seller, consider the following question. Is the home located where it can be deeded out of the rest of the property? If it is, this gives you the possibility to leverage the fact that you could sell the house to someone else besides the farm or ranch purchaser. Is it located on an outer boundary of the property? Is there a road that, if it is sold separately, doesn’t put a big hole in the property? If this is the case, the seller has the potential option of selling the home separately but it will need to be separated legally from the rest of the farm or ranch. This is definitely an option if the farm or ranch is being sold for agricultural purposes only.
If it is being sold as a recreational or trophy property the buyer might have a significant issue with carving the house out of the Montana farm or ranch. Then it is just thrown into the negotiation and it can go either way. If, however, the home is in the interior of the property it is a good possibility that the house will not get full value. One man’s mansion is another man’s teardown. The seller can try and keep the house out of the transaction but it is likely that will greatly affect the offer a buyer is willing to make.
This is why we recommend to clients to go slow and not build a large owner home or lodge until they know this is going to be in the family for awhile. The other thing we tell clients is that if they build a home, especially in the interior of the property, that they might not see any appreciation and they could be heavily discounting the house when selling the property. This isn’t always true if the buyer has the exact same tastes, but there is always major negotiation. This is why we recommend building the home on a boundary or on a public road that doesn’t hurt the aesthetics of the property. Then by separating the house and property legally, there remains the option to sell the house separately.
This can also sometimes helps you on mineral surface agreements where oil & gas firms aren’t able to drill within a certain number of feet from a house. Most reputable oil companies don’t want to risk litigation if they impede on someone’s home and aesthetics. It is not a solid legal defense, but it can potentially help.
See what other aspects of your property may draw value in our article: Things to Consider When Selling MT Land for Sale.
As a buyer, you want to approach Montana home and ranch realty in the same manner as sellers. Look for the right property that satisfies all of your wants and needs. What are those wants and needs? Discover those wants and needs in our Guide to Finding Hunting Land. This guide doesn’t just specifically focus on hunting land. It also applies to any farm or ranch you may be considering to purchase.
It is important, as a buyer, to understand the motivations a seller may have. By using the topics above, you will be able to gain a deeper insight into why they are selling, why they are asking the price they are, and why you should possibly buy the ranch.
Montana home and ranch realty is trickier than most know. Knowing how to protect yourself, as a buyer or seller of Montana home and ranch realty, is something that should be considered and legal representation is recommended. It can be a tax or value issue when you sell and thought going into the transaction can save you significant dollars.
We all want the home in the perfect spot with the perfect view that all can enjoy but it can lead to not recouping what you spent if you decide to part with the ranch down the road.
We hope you enjoyed this article on Montana home and ranch realty. If you sign up we will send you updates on properties and notification of new articles. You might also like our articles about Montana Farmers and Ranchers Peer Groups, Montana Hunting Land for Sale, Women in Montana Ranching, and Buying Montana Ranch-13 Things to Ponder if are looking at purchasing a Montana Farm or Ranch.
If you are starting the journey, contact Buzz and let him help you find the property that is right for you and your family to start creating memories! If you are looking at listing a Montana farm or ranch let us take a look at the property and help you get a fair price for your property.
Buzz Tatom is a ranch owner and has built, run and sold numerous businesses in his career. This gives him a unique background in helping Montana farmers and ranchers navigate the life decisions that we all have to face. Whether it is passing the ranch on to the next generation or planning for eventual sale, his talents and contacts help save clients money and navigate complicated transactions.
He still owns the 5T Ranch in Texas but now calls Big Sky, MT home. His background in Texas included finding run down ranches and rehabilitating them into show place properties. From building lakes, stocking fish, to managing for wildlife he has a proven record of increasing values of properties that have given families great memories and returns.
His successful business background allows him to have good knowledge in contracts, dealing with people and has a wide variance of knowledge from his experience in dealing with oil and gas companies on his properties to manufacturing background to knowing who to call to get answers.
He has a BBA from Texas Tech University and got his MBA from Southern Methodist University. While at Texas Tech, he played football and was a 3 year starter as a Tight End. He bought into a Printing company at the age of 24 and grew it ten fold by the time it was sold in 2011.
Buzz teaches part time at Montana State University and loves mentoring students. He has been married to the love of his life, Kathy Tatom, for 25 years and has one son(Tate) and 2 daughters(Sayler and Emmy).
His hobbies include hunting, fly fishing, improving the 5T and following his son Tate in his golf career at the Air Force Academy. His life is divided between family, volunteering, teaching part time at MSU and Church.