If you’re looking to sell land fast in Iowa, you may be wondering how to get the best price for your property. It’s important to understand the local market, and know how much other properties are selling for so you can price your home competitively. Also, you’ll want to make sure your property is free of any pests and other issues that could affect your sale.
The real estate process can be complicated, but you can speed up the transaction by working with a reputable buyer who’s ready to purchase your land immediately. Whether you’re a homeowner or an investor, you can find the right buyer for your land by searching online or reaching out to local real estate agents.
If you have a tenant on your farm, it’s recommended that you terminate the lease prior to selling. This will give the new owner rights to next year’s crop. Depending on the type of farmland you’re selling, this can be a big incentive to buyers.
Despite the slow economy, farmland prices continue to rise in Iowa and across the upper Midwest. “We’re seeing some really nice prices right now,” said Simmelink, who noted a half-dozen sales in the past two years have hit $25,000 to $30,000 per acre.
These price increases are being driven by farmers who have liquidity from recent-year profits, and by investors who are seeking to diversify their portfolios, he added. In addition, high commodity prices have fueled demand for land that can be used to grow corn and soybeans.
Existing farmers typically account for 70 percent of all farm Quick land sale in Iowa, according to the Iowa State University Choices website. Traditionally, the remainder of sales have been to individual investors and corporations. Investing in agricultural land can be a lucrative proposition, but the long-term returns can be unpredictable.
Another factor influencing Iowa farmland sales is the increasing presence of out-of-state investors, who are purchasing land to take advantage of higher commodity prices and lower interest rates. These investments can go unnoticed because many out-of-state investors use shell corporations to purchase land. And, unlike the public record of real estate purchases by Bill Gates or Joe Burrow, the private records of out-of-state investors can be hard to track.
Those who are interested in selling their land without going through an agent can consider listing it on their own (for sale by owner, or FSBO). This option takes longer, and can be difficult for people who don’t have a good understanding of the real estate process. However, FSBO sellers can save the buyer’s agent commission, which can add up to 2.96% to the final sale price. FSBOs can also benefit from professional photos, which research shows sell homes 32% faster than non-photographed properties. Lastly, it’s essential that you understand the local real estate laws and processes before taking on this challenge. Trying to navigate them without an experienced agent can lead to costly mistakes. If you’re unsure of how to proceed, you can always reach out to an Iowa real estate attorney for guidance.