Selling Your Hobby Farm

SELLING YOUR HOBBY FARM

Not All Homes Are The Same - Selling a unique property with acreage in Minnesota can be a complex and challenging endeavor. Whether you own a sprawling countryside estate, a picturesque farm, or a secluded cabin in the woods, the distinct features and specialized buyer pool require the expertise of a professional realtor and I am here to help!

Selling a hobby farm can be a daunting task, but with the right preparation and guidance, it can be a smooth and successful process. Whether you're selling your property to retire, downsize, or pursue other opportunities, here are some steps to follow to help ensure a successful sale. This guide will walk you through every step of the selling process, from determining the  property to negotiating the sale and closing the deal. We'll cover everything you need to know along with my blogs that have a multitude of information.

 

1. Determining the Market Value of Your Hobby Farm

The first step in selling your hobby farm is determining its market value. There are a few ways to go about this, but one of the most reliable is to hire a real estate agent who specializes in rural properties. They will conduct a comprehensive assessment of your property, taking into account factors such as land size, location, soil quality, water access, and any structures or amenities on the property.

Setting an appropriate listing price is often times the difference between getting your property sold, and having it linger on the market, and eventually not sell. 

*Setting Your Home's Listing Price
As we discussed previously, your home's listing price is based on many factors including:

• Current local Market Conditions
• Comparable Home Sales
• Buyer Availability For Your Property
• Proceeds Comnsideration

If we set a listing price that is too high, we will lack in interested buyers.
If we set a listing price that is too low, we will short change your home.

2. Prepare Your Hobby Farm for Sale

Once you have an accurate idea of your hobby farm's market value, it's time to prepare it for sale. This involves cleaning up the property, fixing any damage or issues, and making any necessary repairs or upgrades. This could include things like mending fences, replacing roofing, or updating outdated appliances. You want to make sure your hobby farm looks its best and is ready for potential buyers to visit.

3. Develop a Marketing Plan

Next, you'll need to develop a marketing plan to attract potential buyers. This will typically involve creating a listing for your property on real estate websites and social media, as well as working with a real estate agent who has experience selling hobby farms. Your agent can help you create professional photos and videos of your property to showcase its best features.

Our Plan For Marketing Your Hobby Farm

1. Define your target market The first step in marketing your hobby farm is to define your target market. We will consider the type of buyer who would be most interested in your property. Is it someone looking for a primary residence, a weekend retreat, or a working farm? Once we have identified your target market, we can tailor our marketing efforts to reach them more effectively.
2. Develop a marketing strategy Next, we will develop a marketing strategy that targets your identified buyer personas. Our strategy should include a mix of online and offline marketing tactics, such as social media ads, email marketing, direct mail, and signage. We will make sure to emphasize the unique features of your hobby farm that will appeal to your target market.
3. Create a professional listing Your listing is the centerpiece of our marketing efforts. It should include professional photos and videos that showcase the best features of your property. It will include detailed descriptions of the land, buildings, and any amenities on the property. Highlight any unique features, such as proximity to trails or waterways, that set your hobby farm apart from other properties on the market.
4. Leverage social media Social media can be a powerful tool for marketing your hobby farm. Your agent should create social media profiles on platforms such as Facebook, Instagram, and Pinterest. Share photos and videos of your property and any updates or news about the sale while also running targeted ads to reach potential buyers in your area.
5. Use email marketing Email marketing can be an effective way to reach potential buyers who have expressed interest in your hobby farm. I will create an email list of interested buyers and send regular updates about the property, including any price changes or new developments. We will also include helpful information about the local area and nearby attractions to help potential buyers visualize themselves living on your hobby farm.
6. Create a virtual tour In today's digital age, buyers often want to see a property virtually before they visit in person. We will creating a virtual tour of your hobby farm using professional photos, videos, & drones. This can give potential buyers a more immersive experience and help them get a better sense of the property's layout and features.
7. Reverse prospecting with other agents through our MLS system, Reverse prospecting is a powerful tool that can help us find potential buyers for your property. By using the MLS system, I can quickly and easily identify other agents who have clients that match the criteria of the property for sale, and then reach out to them with targeted marketing materials, videos, & photos. This can help increase the visibility of the property and ultimately lead to a faster sale.

4. Schedule and Conduct Showings

Once we have developed a marketing plan and started promoting your property you'll want to make sure the property is clean and tidy and that all potential buyers are accompanied by a licensed real estate agent. During the showing, you'll want to highlight your hobby farm's unique features and answer any questions the buyers may have.

5. Receive and Evaluate Offers

After conducting showings, you should start receiving offers from potential buyers. Your real estate agent can help you evaluate these offers and determine which ones are the most promising. You'll want to look at factors such as the buyer's financing, the offer price, and any contingencies that may be included in the offer.

It would be great if closing a real estate transaction was like buying a new bike or TV, just cruise through the aisles, pick your favorite model and head for the register. But this just isn't the case. Real estate transactions are complex and involve as many as twenty different players including real estate brokers, buyers, sellers, attorneys, inspectors, appraisers, lenders, and often contractors. Because of this, even the simplest transaction today typically takes between 30 and 45 days to close.

*Dealing with Offers

When a buyer or a buyer's agent makes a formal offer we will review the offer in its entirety together. It will include the offer price, as well as the terms and conditions of the offer. Offers will come on a legal form, and if accepted, you will be entering into a legal contract with the buyer. (Keep in mind that there are still lots of ways ‘out' for both you and the buyer at this point.)

When we evaluate offers we'll of course consider the offer price, but we also need to review:

1. All of the terms and conditions of the offer. Home buying offers regularly include terms such as what should be
   included in the sale of the home.
2. Anything that is an unusual request or requirement of the purchase offer. We'll want to explore the full implications of anything odd that the buyer is including in a purchase offer.
3. Whether or not there are other offers on the table that are a better fit for you.

After a buyer submits an offer you can accept, reject, or counter offer. We will prepare any counter offers together, and I will submit that to the buyer's agent or the buyer and guide you through the negotiations.

Once you accept an offer here's how things will run:

1. The buyer submits "earnest money" that is deposited into your real estate broker's account. This is typically 1%-3% of the agreed purchase price.
2. A title policy will be ordered on your property.
3. The buyer will conduct an independent home Inspection and if they remove the inspection contingency the lender will order an appraisal (these are all the buyers costs).
4. You will need to complete any agreed upon requests for repair that were submitted by the buyer before the closing date.
5. The title company will continue to exam the property, prepare all closing documents & coordinate the closing date for the seller & buyers.
6. The buyer will most likely schedule a walk through to verify the condition of the property and see any repairs that were made right before your closing appointment.
7. Closing is scheduled and completed.

6. Negotiating the Sale

Once you've selected a buyer, we will need to negotiate the sale. This may involve some back-and-forth communication between us and the buyers agent. You'll need to come to an agreement on the final sale price, any contingencies, and the closing date.

7. Close the Sale

The final step in selling your hobby farm is to close the sale. This involves signing the necessary paperwork, transferring ownership to the buyer, and receiving payment for the property. You'll typically need to work with a title company to ensure that all legal requirements are met and that the sale is completed according to state and federal laws.

 

*COSTS OF SELLING YOUR HOME*

Selling your home is typically about making a profit. However, that doesn't mean that it doesn't come without costs. Here is an overview of some of the major costs you'll be responsible for paying.

Mortgage Balance- This is the remaining balance on your original home loan. You will need to pay off your mortgage in its entirety when your home is sold.

Home Equity Loans (2nd, 3rd Mortgages)- Any loan against the value of your home will also need to be paid in full after the sale of your home.

Prepayment Penalties- The bank or lending institution that currently owns your mortgage title may assess a pre-payment penalty. You should speak to your lender now, ask if they plan on assessing a pre-payment penalty, and figure out exactly how much that amount is. You may be able to negotiate with your lender to reduce or waive the prepayment penalty, if there is any.

Pre-sale Preparations- In most cases, it's not advisable to make major investments in your home right before a sale. There are
however, a few things that can be done to increase your home's curb appeal, fix minor problems, and otherwise make your property more attractive. Together we can identify what items should be addressed and create a budget for these pre-sale preparations that are sure to show a significant return on investment.

Closing Costs- All closing costs associated with the sale of your home will be listed for you and for the home buyer in the Closing Disclosure form. They buyer is generally responsible for all of these closing costs which include but not limited:

The real estate broker commissions / Broker Admin Fee/  Insurance premiums/   Title costs (examination and insurance)/   Legal documents and services fees /  Recording/filing fees/  Property Taxes/  State Deed Tax/ * Buyers Closing Costs*

*In some cases, buyers make a request for you as the seller to cover their closing costs as a part their purchase
offer. We will negotiate these requests if they are made and I will help you understand why it would be
advantageous to cover the buyers closing costs (if it is) and what limitations we can set to make sure we know
the exact net of your home sale before closing.*

Moving Costs- Moving isn't only a hassle, it can also be very expensive. Whether you're moving to a new house in your neighborhood or across the country, it's important to estimate and plan for the full cost of moving from your home once it is sold. If you're working with a moving company, you'll want to get a full idea of what you'll be charged for what services. If you're moving yourself, you'll most likely need to rent a van. And don't forget the packing materials including boxes and tape. The more preparation you do in your move planning, the less likely you are to avoid overpaying for your move expenses. See my moving checklist below!

MOVING CHECKLIST

Tranfer or Cancel:

1.  Transfer or Cancel:

• Utilities:  electric, gas, water, sewer, and trash - if your moving to a new city in MN, CLICK HERE to find your new city providers
• Cable, telephone (landline and cell phones), newspaper, and lawn services
• Car registration and driver's license
• Postal service - request mail forwarding
• Bank accounts and safe deposit box
• Insurance policies:  property, auto, and medical
• Collect all of your important documents – birth certificates, passports, medical records, and carry these with you instead of packing them.
• Precious items such as jewelry or your family photo albums should also carried with you instead of
  packed along with other household items.
• Alarm/security company
• Voter registration
• Doctor, dentist, and other medical providers (make sure to have at least two weeks of prescription medicine on hand for the duration of your move)
• Veterinarian
• Health clubs
• Your children's schools and daycare centers
• Notify your contacts of your new address
• Notify your employer of your new address
• Have your car serviced if you are traveling a long distance.
• Arrange hotel or other accommodations.
• Make plans for pet care and/or lodging.

Packing and Moving

•  If you're hiring a moving company, get a firm bid in writing,. Keep all documents pertaining to your move until your possessions are delivered to your new home, the charges are paid, and any claims are settled.
• Try and consume canned food and frozen items before the move.
• Drain gasoline from your lawnmower. 
• Drain any water from your garden hoses.
• Dispose of any flammable or hazardous items. 
• Collect boxes, tape, bubble wrap, newspapers, garbage bags, and markers - or let your movers bring these items.
• Disassemble furniture and pack all of your fragile household items.
• Moisten plants before moving.
• Pack a "first night" box with coffee, bedding, household cleaners, toothpaste and toothbrush, pet food, and other essentials that you expect to need upon arrival.

*Before You Leave*

Conduct a last-minute walk-through. Check drawers, closets, the basement, and the garage. Make sure everything is turned off and locked up.

*Preparing Your Home for Success*

 Preparing to put your home on the market takes a keen eye for detail and an impartial assessment. Here are some points to consider when preparing to show your home.

Exterior

Your exterior of your home is the first thing buyers see, this is called your curb appeal, your first impression of your home.

·        Clean and repair the roof as needed

·        Clear garage of clutter and tidy shelves

·        Inspect chimney for cracks and damage

·        Remove peeling and chipped paint including all trim too; replace with a fresh coat

·        Fix loose trim and fencing

·        Clear gutters and downspouts

·        Make sure there is good exterior lighting and all walkway lights and front-door lanterns work

Yard

·        Mow and trim grass

·        Prune all overgrown trees and shrubs

·        Weed all beds

·        Remove or replace dead or diseased plants, shrubs, and trees

·        Clean grease and oil stains from driveway

Decks/Patios

·        Paint or stain worn areas on wood decks

·        Remove grass growing in concrete cracks; sweep off debris from shrubs and trees

·        Clean all deck rails and make sure they’re secure; replace missing slats or posts

·        Clean outdoor furniture

Front Door

·        Add a fresh coat of paint to get rid of nicks

·        Clean the glass

·        Make sure there are no squeaks when the door opens and closes

Windows

·        Clean all windows inside and out – a great hack for outside windows is use Windex outdoor glass that attaches to the hose

·        Make sure window screens are clean and secure; replace any screens with holes or tears

·        Make sure all windows open and close easily

·        Replace cracked windowpanes and those with broken seals

 

Interior

General Interior Cleaning

·        Clean all floors, carpets, walls, and trim

·        Replace burned-out light bulbs

·        Empty trash

·        Tidy up clutter

Kitchen

·        Organize pantry and cupboards so they appear clean, neat, and spacious

·        Make sure the refrigerator and freezer are free of odors

·        Clean the oven and cook top thoroughly

Living/Family/Dining Rooms

·        Give rooms a fresh coat of paint as needed

·        Repair cracks and holes in ceiling and walls

·        Make sure all wallpaper is secure

·        Repaint any woodwork that is worn or chipped

·        Clean or replace draperies and blinds; open them to maximize light

·        Clean carpets

·        Position the furniture to showcase the size and space of the room

·        De-Clutter

Bathrooms

·        Make sure sinks, tubs, showers, and countertops are clean and free of stains

·        Clean/Replace any missing or cracked tiles or grout

·        Make sure all fixtures, including heat lamps and exhaust fans are operating

·        De-Clutter

Bedrooms

·        Apply a fresh coat of paint if necessary

·        Repair cracks in ceiling and walls

·        Make sure all wallpaper is secure

·        Clean draperies and blinds; open them to maximize light

·        Neatly make up the beds

·        De-Clutter

Basement

·        Check for water penetration or dampness; call for professional repairs if necessary

·        Get rid of musty odors

·        Clean furnace, hot water heater, and drains

·        Make sure light fixtures work

·        Make sure there is a stairway handrail and it is secure

Other Items To Consider

·        Plant flowers to brighten the walkway and enrich the entry

·        Remove any indoor houseplants that are brown or losing their leaves

·        Remove all “fixer” cars, campers, and boats from the property

·        Discard the clutter of magazines on the coffee and end tables

·        Tidy and declutter all closets

·        Hide or get rid of worn-out throw pillows

·        Store pet supplies

·        At night, turn on the porch light and outdoor lighting

 Clean & Then Clean Some More!

You may have lived in your home for some time. You may accept a few stray pet hairs or some dirty tiles but buyers will not. Walk through your home with a discerning eye and remember that the house must be spotless. Don’t ignore the outside of the property. Buyers will notice unkempt gardens, chipped walkways, and oil stains on the driveway. 

 De-clutter

Too much stuff not only clutters your home but also clutters your buyer’s line of sight and can make your home appear smaller. If the buyer is looking at the clutter in the home instead of the features, you’ve lost the sale. Rent a storage unit if necessary and remove all unnecessary items from the home. Don’t use the garage – buyer’s will look there as well.

Eliminate Smells

If you have pets or kids or smokers in your home, chances are you have become accustomed to their smells. Buyers will react negatively to these smells. A thorough cleaning of your home may eliminate the odors but if necessary, hire a cleaning company to steam clean the carpets, drapery, and furniture if possible.

As a dedicated and experienced real estate professional, it would be my pleasure to guide you through the entire selling process, ensuring a smooth and successful transaction.

Selling a home is a significant milestone, and I understand the importance of this decision in your life. My goal is to make the experience as positive and stress-free as possible. With my expertise and market knowledge, I will develop a tailored strategy to showcase the unique features and maximize the value of your property.

I am committed to delivering exceptional results and exceeding your expectations. My ultimate satisfaction comes from seeing my clients achieve their real estate goals. Your success is my success, and I will work tirelessly to ensure that your selling experience is not only rewarding but also enjoyable. 

I am confident that, together, we can achieve remarkable results. Please don't hesitate to reach out to discuss your selling needs further. It would be an honor to serve you and help you sell your home with utmost professionalism and dedication.

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