What Should You Do Before Selling Your Tillable Farm Land?
Nick Hopp
Iowa and South Dakota Land Specialist
Selling tillable land can be a complex process, but with the right preparation, you can maximize the value of your property. Before moving forward with a land sale, it’s important to take several crucial steps. So, what should you do before selling your tillable farm land? Here’s a guide on how to get started and ensure that you are well-prepared.
Understand Your Land’s Value
The first step in selling tillable land is to have a clear understanding of what your property is worth. Do you know the current market value of your land? The value of tillable land can fluctuate based on various factors such as soil quality, location, crop yields, and local market trends. It is essential to have an accurate appraisal or valuation before listing your property.
Consider the Best Way to Sell Your Land
There are different methods of selling tillable land, including direct sales, auctions, or working with a real estate agent specializing in agricultural land. It is important to understand which method aligns with your goals and will achieve the best price for your land.
Understand the Tax Implications
A land sale can have significant tax implications. Depending on the situation, you may be subject to capital gains taxes, property taxes, or other fees. It is a good idea to consult with a tax professional to understand how the sale will affect your finances and how to minimize any tax burdens.
End the Lease Agreement (If Applicable)
In many cases, it is advisable to sell tillable land without an active lease in place. This ensures the new owner can take full control of the property. In Iowa, for example, if your land is leased, state law requires that you terminate the lease before September 1st for the following year. The notice must be sent via certified mail or acknowledged by the tenant, in accordance with Iowa Code 562.
Gather Key Property Information
Before selling your tillable land, compile all available information about the property. This includes:
- Tile Maps
- Soil Samples
- Yield History
- Fertilizer and Nutrient Records
If the land is being operated by a tenant, it is a good idea to request this information annually to maintain up-to-date records. If you haven’t collected this data, don’t worry – High Point Land Company offers land management services that can help gather this information, even if you are not currently planning to sell.
Work with a Land Specialist
There are many additional steps involved inn preparing land for sale, including marketing, negotiating, and closing the deal. A professional land specialist can guide you through the process, helping you reach the highest possible value for your property.
If you want to know more about how to prepare your land for sale and ensure a successful transaction, do not hesitate to reach out. High Point Land Company is here to help you achieve the best outcome for your estate, investment portfolio, or your family’s future plans.
Do you want to learn more?
When the question, “What should I do before selling your tillable farm land?” arises, reach out to one of the High Point Land Company agents and we will be a guiding partner. For more questions regarding land real estate, visit our YouTube Knowledge Center.
With seven years of full-time experience as a land specialist in Iowa and South Dakota, Nick Hopp has distinguished himself as a leading expert in the field. Nick has successfully facilitated the sale of thousands of acres, setting numerous township and county records through his adept use of proven auction and real estate strategies. If you are interested in selling your farmland, call Nick at 319-240-6121 or email him at nick@highpointlandcompany.com.