Tips for Selling Farm without Realtor (Pennsylvania)
My parents have a farm in SE PA that they want to sell. At this point in the process, they don’t want to get a realtor. Land is zoned office industrial. Any tips for selling without a realtor? Or if one is eventually needed, choosing one? Thanks!
[{"id": "hny3pkm", "text": "Get a broker that has sold similar properties in that area and has a solid track record. You will have to pay a commission but they will more than pay for themselves by getting a higher price.", "replies": [], "depth": 1}, {"id": "hny7k0x", "text": "I\u2019d strongly advise at least taking to a broker in the area that does land or farms. If it\u2019s zoned for office industrial, it may have some development potential. However, your parents probably know next to nothing about utility tie-ins, wetlands, protected land, etc. A broker make also be able to sell off conservation rights or TDRs and sell the land to a farmer. Lot of options for maximizing value, but also a lot of other moving parts that can impact value. \n\nFeel free to DM me if you like. I buy land primarily for homebuilding in that market and I may be able to refer a broker depending on the county and land type.", "replies": [], "depth": 1}, {"id": "hny9t88", "text": "Not using a broker for a deal where there is potential redevelopment possibilities is penny wise and pound foolish.", "replies": [], "depth": 1}, {"id": "hnz0o8g", "text": "Thanks all! I should also add it\u2019s also zoned for ag, is around 70 acres in total, and in Chester County. My parents reluctance stemmed from one realtor wanting to hold for a year. Is this common?", "replies": [{"id": "hnzv0ta", "text": "There is a large farm for sale in my area and has been on the market for 2 years. It\u2019s gone through 3 brokers. Sometimes these types of properties take longer to go under contract and might have multiple offers before you can come to terms for both parties. My last commercial property took about a year and a half and about five offers before we found the right buyer. This won\u2019t be like a standard residential transaction and will take more time for a broker to market and sale. Going through multiple brokers because they couldn\u2019t get an offer in six months, in my opinion, wastes a lot of time. Every broker will need to gather their own paperwork, do their research, do photography, and they mostly do this for free for you to get paid at closing. To hold a listing contract for a year seems fair to me.", "replies": [], "depth": 2}, {"id": "ho0q164", "text": "70 acres with potential to redeveloped or at the minimum rezone to industrial/office should definitely be handled by a brokerage team. It could mean at least a 20% difference for your family. Marketing agreements usually request a year but that doesn\u2019t mean you can\u2019t  counter the brokers proposal and list for a timeframe you feel more comfortable with. It\u2019s also important to work with a national firm rather than a boutique firm for land this size with the potential to redevelop. This type of property is incredibly valuable to Investors/developers around the country looking to move capital. That\u2019s where having a good brokerage team comes in handy, they will \u2018package\u2019 your asset and advertise to their countrywide network of developers, private equity, REITs, pension funds, etc.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hnzag14", "text": "As a Realtor, advice on here is spot on. I would not be your guy because land isnt my expertise. We, as a group, are no different than others. Some of us are great and some of us suck. Keep interviewing, good value in 70 acres in Chester County", "replies": [], "depth": 1}, {"id": "hnzalz3", "text": "Anything I Chester County will sell quickly. Brokers will line up for the opportunity for such a sale. I'd come up with the terms you want and present them to the agents. Someone will gladly work with you.", "replies": [], "depth": 1}, {"id": "hnzjc6w", "text": "Lol, it's foolish not to hire a professional.  I suppose they do their own dentistry, plumbing and electrical work?", "replies": [], "depth": 1}, {"id": "hnzpi6h", "text": "OP: I don\u2019t know what I\u2019m doing and don\u2019t want to pay a professional \n\nAlso OP: Reddit will give me the answer I want to hear", "replies": [], "depth": 1}, {"id": "ho0djml", "text": "I am a commercial real estate appraiser in Chester County PA. I have worked on many land deals in the area. I am happy to speak with you about your options. There are other options than using a broker. PM me if you would like to discuss.", "replies": [], "depth": 1}, {"id": "ho28fus", "text": "If you need tips on how to, then maybe don\u2019t\u2026..", "replies": [], "depth": 1}, {"id": "houtqmp", "text": "You probably don't want a realtor as they tend to specialize on single family homes, but your parents DEFINITELY will get the most money selling an office industrial property that is being used as a farm using a qualified, aggressive commercial broker with a database of commercial developers.  I would suspect this might end up being 2x the price they would get themselves (and with a real buyer who actually closes without unexpectedly reducing the price).  Any real commercial broker would give you an opinion of value for free (which my firm would be happy to do).  Good luck and let me know if I can help, I'm actually marketing a development site right now.", "replies": [], "depth": 1}]