Listing your Farm or Lifestyle Property: PART I

The idea to sell your property is a big decision and sometimes it can take you months of emotional thinking and talking with friends and advisors before you take the next step and list your property.

Engaging a Real Estate professional is the next decision. You may already have a sales person in mind, or have a recommendation but you should choose someone that you feel confident with and you would be happy to leave in your home and make a cup of tea without you being there. Your salesperson of choice has got to be to be a professional because they are going to represent perhaps your biggest asset and they need to understand your farming business or lifestyle block.
The REAA has a Public Register  of all licenced Salespeople (see www.reaa.govt.nz) so you can go on line and look them up.

Check to see if the company you are choosing is using the standard clauses for agency agreements and this again can be found on the REAA website. Most companies have chosen to use these but some have not as they are voluntary but you have more protection as a Vendor than some companies’ agency agreements.
Rural sales specialists will have a Check List of detail that they will want to get from you. Firstly you need to decide on the method of sale.

Price by negotiation, Tender or Auction? These methods of sale need to be explained carefully to you so that you can make the right decision for you (not the salesperson). Are you going to give them a sole agency, a general agency or joint agency. You need to understand the benefits and negatives for each of the sales methods for you.

Be clear on whether the selling entity is Registered for GST or not and how the sale is to be handled in this respect.  This may be different from the trading entity in the case of a farm sale i.e the farm ownership structure could be different from the farming activity.

Information gathering this needs to be comprehensive. Do not let the buyers try and guess something or some detail they will guess wrong! Arm your salesperson with the tools, they must understand your business, know how much fertiliser went on, understand all the consents held by the property,  are the sheds on the property permitted – if not it’s best to disclose and don’t hide it. Other detail may include water line sizes, what type of water pump, electric fence unit, is the gear in the woolshed staying, what farm implements may be for sale. You can never give too much detail.

Some of the detail you can have ready for the Saleperson is a copy of your rates, fertiliser records, a recent soil test, farm and paddock maps and stock numbers that you may be running or trading policy. This is only a small amount of the detail needed but you will need time with your salesperson to go through the detail.

About Richard Anderson

Mobile 027 543 1610
Office 06 323 3363
Home 06 323 1390

Email: richarda@ruralandlifestylesales.com

Richard has extensive experience in rural New Zealand and several overseas rural markets. Originally from the South Island, he lived and travelled overseas working for an Agri-Tech company and eventually settled in the Manawatu. Richard entered the real estate industry in 1995. From 2000-2010 he was Rural Manager for a large real estate company, supervising up to 40 real estate salespersons.

Richard is a jet boat enthusiast, and is on the national executive of Jet Boating NZ.