Winter hiatus good time to prepare for spring sale
As farmers are preoccupied with lambing and calving, winter is generally a quiet period for rural property transactions.
However, for those thinking about listing to sell a farm in the spring, it pays to look ahead.
Good preparation is necessary to optimise value.
A property’s physical presentation makes a big difference.
This includes maintenance of fencing, farm tracks, dairy shed and plant (or woolshed and yard), irrigation systems, general outbuildings, water supply and other infrastructure.
Ensuring that the paperwork is in order is equally important.
Once the ‘x’ factor and potential capital gains were what sold a farm.
These days, sales are invariably based on the business case.
Strong farm accounts, productivity history, fertiliser records, consents and property titles all need to be in place and ready for a purchaser to undertake due diligence.
My PGG Wrightson Real Estate colleagues and I are working with a number of local farmers preparing to list in the spring, and expect some excellent farms to come to the market.
These include one of the Taupo district’s top performers, a 150 hectare 400 cow property with excellent production; along with a property close to a major farming centre, featuring new facilities and carrying a herd of over 800.
Purchasers taking an interest include investment funds and locally based farmers seeking to expand their holdings.
Recently published Real Estate Institute statistics suggest that confidence among dairy farmers is steadier than some would have us believe.
Although fewer farms sold than in May last year, values have only dropped by a minimal amount.
Although farmers are somewhat timid in bringing property to the market, sales are still happening at all levels across the country at respectable (albeit unspectacular) values.
This week, with Fieldays and Gypsy Day behind us, the district’s new farmers, including newly arrived sharemilkers, are invited to a welcome dinner, something Federated Farmers has put on in the South Waikato since the mid1950s – a great opportunity to make new acquaintances and become part of the local farming fraternity.
It should be a good evening.
Paul O’sullivan is Bay of Plenty and Central Plateau Real Estate Manager for PGG Wrightson Real Estate Ltd. Since he began his career in real estate in 1978, he has negotiated sales in excess of $850 million worth of properties, including dairy, sheep and cattle, forestry, waterfront and agri-science projects.