SELLING THE FAMILY FARM/ASSETS (STEP 5)
BE PREPARED - GET ALL YOUR DUCKS IN A ROW !
Assuming a decision to sell is arrived at we have outlined the process below as follows:
Confirm with your Solicitor that you intend to sell the property and give them instructions to deal with the sale and prepare the necessary legal documentation.
Contact the selling Agent or party who advised you and meet them for a full discussion and to review the sales process, dealing with specific queries and the following general areas:
Recommended method of sale – Auction, Private Treaty or Tender.
Timing of sale – best time to sell in order to maximize price.
Marketing and advertising campaign – dates and recommended medium for adverts.
Costs including fees.
Division of property – should the property be offered in lots or as one unit.
Guide price – recommendation.
Viewing of property – how will viewings be conducted and who will be doing them.
Works prior to marketing - recommendations prior to sale.
Fully plan the sale with dates, timing etc. If the sale is by Private Treaty, then timing may be more difficult to determine than Auction where there is a defined date.
Prepare the property for sale and complete any works recommended. This need not involve considerable expenditure but can be generally of an aesthetic nature. Depending if there are buildings or not on the land, it is important to ensure that the yard is tidy, sheds are cleaned out, hedges are trimmed, grass on avenues are cut, paddocks topped so that overall, when someone views they get a good first impression.
From our experience while it is difficult to place a value on this type of preparation it has always, where it has been completed, assisted with achieving a sale.
Viewing of the Property Where there are houses and buildings involved, generally the sales agent will accompany somebody through the property so you will have little involvement through the process unless, of course, the farm is a comprehensive or expansive dairy or grain facility whereby the internal workings of this would be better explained by the owner and in some of these circumstances, it can be beneficial that the owner is available on days of inspection to clearly show how the farm has been laid out and all its positive merits which seldom can be highlighted to the same extent by the selling agent.
The vendor should be always very reluctant to engage in any discussions on price with a potential purchaser. This prevents any disparity developing between the owner and the agent. Always let the agent discuss price with potential buyers. If a potential customer gets the vibe that the owner is not prepared to sell unless some astronomical price is achieved, this can turn them away.
Once a Sale is Agreed and a contract has been signed either at Auction or on a Private Treaty basis a closing date will be established. On this date, the vendor will have to vacate the property and leave it in a position for the purchaser to occupy. This may involve cleaning out sheds, emptying buildings, cutting a crop and removing the straw, all depending on the enterprise on the land.
It is important the vendor allows himself enough time to complete this and generally it is a six-to-eight-week process, but this can be extended or reduced depending on each individual sale.
Selling tactics need to be carefully agreed and talked through prior to viewings. Hence, it is essential that a good relationship is established between the vendor and the selling agent.
Clive Kavanagh
Director
BSc (Surv), MSCSI, MRICS, MIPI
T: 045–433550
E: clive@jordancs.ie