Selling up? The key is to sell well!

Selling up can be an emotional time, particularly where a family farm is sold. It is important to seek advice, make the right choices and ensure everyone understands how and why decisions are made.

In practice, there are a multitude of factors to consider to ensure a property is marketed and sold to best advantage.

First up is the timing of the sale. Traditionally, rural properties are marketed in the spring to coincide with increased buyer interest. Properties also tend to look their best for photographs and viewings.

However, with the increase of internet advertising, buyers are looking for properties all year round and the traditional spring “bounce” is less important.

The timing of the sale may also have tax implications. Would you be better receiving the sale proceeds in the next financial year? A sale is likely to lead to a big capital gains tax bill.

Talk to your accountant and agent to determine the most tax efficient way of selling. What allowances can you take advantage of? Will you have to charge VAT on any part of the property sale?

It is also important to talk to your solicitor and land agent early in the process – essentially to clarify exactly what is to be sold. Title deeds and all the relevant paperwork for planning extensions or permissions, wayleaves, servitudes etc will need to be checked.

Any cottages or houses on the farm, or indeed areas of land leased out, will have to be carefully considered – will it be difficult to regain vacant possession prior to selling?

Your land agent should also be able to offer advice regarding subsidies and scheme management. Will you include BPS entitlements in the sale, as a separate item at an additional cost, take them with you?

What agri-environmental or forestry schemes do you have that you will have to pass to the buyer? Have you notified SGRPID of any changes?

What do you want to achieve from the sale? The highest possible price, or the fact that the property is sold as a whole to the “right” person?

If the former, are there opportunities to add value quickly by getting planning permission for buildings or a house site(s)? Should you hold on to smaller areas with hope value, or agree a clawback provision in case of future development?

It is important to have a realistic idea of the budget for promoting the property. Consider novel marketing ideas such as drone footage and social media advertising. Listen to your agent’s suggestions, however do not be afraid to challenge their recommendations, marketing strategy and sale price.

A property that looks expensive is less likely to appeal to buyers and it is very difficult to come down in price without attracting negative attention. But if it looks too cheap, buyers can shy away fearing there is something wrong.

Consider how you might want to prepare the property for sale: Will you have the “roup” – the disbursement sale – before putting the farm on the market?

If so, you lose the opportunity to sell machinery, stock and fixtures to the purchaser at perhaps a better price. A general tidy-up and some repairs will not cost a lot but may make a big difference to viewers’ impressions.

Finally, not all properties sell quickly, and it very much depends on the strength of the market. However, if months go by without any viewings something is very wrong with the marketing or sale price or both. Do not be afraid to change agents.

Making the decision to sell is emotive and for many, it is a once-in-a-lifetime scenario. Your professional advisers (land agent, accountant and solicitor) will guide you through the various challenges to ensure sellers sell once and sell well.