Farm land is a
real estate niche that deals with the purchase and sale of
Arable land
Arable land (from the la, arabilis, "able to be ploughed") is any land capable of being ploughed and used to grow crops.''Oxford English Dictionary'', "arable, ''adj''. and ''n.''" Oxford University Press (Oxford), 2013. Alternatively, for the ...
.
This niche requires the
real estate agent
A real estate agent or real estate broker is a person who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients. Brokers and agen ...
to have very particular knowledge about the land and
farming industry.
A Real Estate agent or
broker
A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be confu ...
that specialises in farms must be knowledgeable in the following: City, County and State regulations of farms. The agent must be familiar with
P&L statements for farms.
Farm land can be very large: some farms are more than 100 acres.
The agent must be familiar with livestock farms and crop producing farms to determine the market value of the property.
Value of the property is determined with the expected return on investment of the farm business.
Farm machinery are often included as part of the transaction. In many cases, farm machinery are worth more than $1 million.
Farming transaction is very complex. There are few lenders available to finance a farm.
A state salesperson or
brokers license is required to represent a seller or buyer.
A real estate salesperson or broker should have a minimum of 5 years experience working with an experience farm broker before soliciting for their own farm clients.
References
Real estate terminology
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