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Selling a property is always a big decision, but when it comes to selling a farm versus selling a home in Maryland, the process can be quite different. While both involve navigating paperwork, finding a buyer, and negotiating the terms, selling a farm introduces a range of complexities that homeowners may not encounter in a traditional residential sale.
1. There Are More Moving Parts
Selling a farm involves more moving parts than selling a home. In a residential real estate transaction, the focus is generally on the home itself—often a single house and its surrounding land. When it comes to farms, there are many additional elements to consider, such as barns, outbuildings, livestock, equipment, and any agricultural leases. We routinely navigate sales involving boarded horses, equipment sales, and rent backs to allow time to move animals.
2. Scenarios Residential Agents Are Not Familiar With
Residential real estate agents are trained to handle your typical home sale. This usually means marketing the home, reviewing contracts, and managing buyer negotiations in an urban or suburban setting. However, farm sales present unique scenarios that most residential agents aren't accustomed to handling. A farm agent needs to be able to handle all of the above in addition to answering questions around zoning regulations, water quality, septic systems, environmental restrictions, ag taxes, cost sharing, and more. We also are equipped with lists of specialized contractors who can work on barns, arenas, fencing, grading, and other farm projects.
3. Additional Liability
With a farm sale, liability becomes a greater concern. Livestock can be dangerous and not every agent that walks through a property understands this. I have had to stop agents from climbing over fences with hot wire and I am very clear with my instructions to ensure that both the humans and the animals stay safe.
4. More Extensive Marketing
The buyer pool for farms is much smaller so it is important to work with an agent that understands not only which materials will be necessary, but how to disseminate them as widely as possible so your property gets in front of the right audience. Residential properties are marketed through the MLS where the property is then shared with thousands of sites like Zillow, Trulia, and Realtor.com. Homebuyers are shopping based on location, square footage, price, and condition. Farm buyers are often considering those factors plus acreage, exterior amenities, and whether the farm suits their intended purpose. It’s crucial to highlight the property’s agricultural potential. This often involves showcasing aerial footage, videos, site maps, and specialized listings that appeal to the right type of buyer. Marketing a farm requires a more targeted approach. If you’re thinking about selling your farm, it’s essential to work with an experienced real estate agent who specializes in agricultural properties. Knowing how and where to market a farm makes all the difference.
5. Pricing A Farm Is Different
Pricing a townhome is a much simpler process than pricing a farm. This is why sites like Zillow are often decent at their price estimates in residential neighborhoods. The square footage and lot sizes are similar and it just comes down to bedroom/bathroom count. An agent can come in and make a determination on pricing based on these stats while factoring in the condition of the property. Pricing a farm is often much trickier. Not only do we need to consider the value of the home and land, we also have to consider the farm and equestrian amenities. Every farm is custom and there will never be a perfect comp so working with an agent that understands the market and can price your farm appropriately can be the difference between your farm selling quickly and sitting on the market for months or even years.
6. Connections Are Important
Is your agent tapped into the agricultural or equestrian community? If not, your farm likely isn’t getting in front of as many buyers as it could be. Connections can be critical to find a buyer. A farm agent might have access to buyers that would love your farm and might be willing to submit an offer before it even hits the market. We always advise our clients that going on the market publicly provides them the best chance at securing the very best terms since you get in front of more buyers, but our sellers often tell us to bring any buyers we might have as they prepare to go on the market. If they can get terms they are happy with before going on the market, they are usually all for it. Some sellers prefer not to market their properties publicly at all for various reasons. While an off-market buyer is not guaranteed since the buyer pool for farms is already small, but working with an agent with deep connections in the agricultural or equestrian world will be your best bet to get it done.
Sarah is a Realtor specializing in residential and equestrian properties. She is based in Howard County, Maryland.
Posted by Sarah Lipkowitz on
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