Realtor question.

[bucket]

Many farms are being sold quickly through a realtor it seems . Does it pay , what are the fees , can a guy do it privately for less or is it better just to let them handle it since they probably have a list of interested parties as a head start.

[SASKFARMER]

They make three calls and it’s over if your in a area they wsnt

[Old Cowzilla]

Lots sold with tender system through local paper or internet. Lawyers do all the work anyway. Realters collect gravy for little work they do but then again this has been a SELLERS market for a long time now. That could change quickly.

[Sheepwheat]

Lots sold with tender system through local paper or internet. Lawyers do all the work anyway. Realters collect gravy for little work they do but then again this has been a SELLERS market for a long time now. That could change quickly.

The worst way to have to buy land is by tender. Therefore the best way to sell land is by tender.

If I ever was forced to sell, I’d put it out for tender. Guys around here just can’t stand the thought of someone else getting it. And historically we are a cheap land area, but that has changed lately as there is getting to be such a small amount of land left that will ever come up for sale again.

That said, I think a realtor probably would help exposure if one had a large land holding.

[Grahamp]

I think it also depends on how much experience you have in land transactions. Do you know how condition removals work, do you have debt and a release arranged with your lender, are there any liens by the RM or town or railway that need disclosed. etc. None of this is hard and you if you have a good lawyer you can certainly do without a realtor. Having said that and as much as it pains me to admit it, in a hot market like this a realtor may be able to bring you an offer that is above what you would even ask for. Personally I would tell them flat out you are thinking of selling yourself, but ask what they can do where they would list it. Also some areas have aggressive agents that consistently sell for market topping prices. They earn their commission and that is the guy you want. You certainly don’t need a realtor to sell your land for what your neighbour paid 2 months ago.

Also do your homework. Go to the farmland security board pay your $15 and get all the land sales that have happened in your RM the last 2 years. A lot of times the stories you have heard are just not true. Know what land especially in the last 6-12 months has sold for.

[TSIPP]

The worst way to have to buy land is by tender. Therefore the best way to sell land is by tender.

If I ever was forced to sell, I’d put it out for tender. Guys around here just can’t stand the thought of someone else getting it. And historically we are a cheap land area, but that has changed lately as there is getting to be such a small amount of land left that will ever come up for sale again.

That said, I think a realtor probably would help exposure if one had a large land holding.

And then the seller phones you and tells you bid higher or someone from far away will get it.

[bobofthenorth]

Not land sales but the principle applies: The last 3 properties we have sold we listed privately. When the realtors called I simply told them "If you've got a legitimate buyer I'll give you a 72 hour listing." Most of them never called back but I signed a couple of short term listings. I don't think any of them actually bought BICBW. The wording of their listings protects them if one of their buyers tries to come back later to make an end run around the realtor. Any realtor worth his commission will know what is for sale locally so they'll call if they're for real.

[woodland]

I think it also depends on how much experience you have in land transactions. Do you know how condition removals work, do you have debt and a release arranged with your lender, are there any liens by the RM or town or railway that need disclosed. etc. None of this is hard and you if you have a good lawyer you can certainly do without a realtor. Having said that and as much as it pains me to admit it, in a hot market like this a realtor may be able to bring you an offer that is above what you would even ask for. Personally I would tell them flat out you are thinking of selling yourself, but ask what they can do where they would list it. Also some areas have aggressive agents that consistently sell for market topping prices. They earn their commission and that is the guy you want. You certainly don’t need a realtor to sell your land for what your neighbour paid 2 months ago.

Also do your homework. Go to the farmland security board pay your $15 and get all the land sales that have happened in your RM the last 2 years. A lot of times the stories you have heard are just not true. Know what land especially in the last 6-12 months has sold for.

Wow you guys are lucky. We have to pay that much per title to pull all the details. Definitely the best money you can spend though👍

[helmsdale]

And then the seller phones you and tells you bid higher or someone from far away will get it.

Or invites you for supper... along with the 2 other highest bidders.

Then he discloses to the 3 present, what they all bid and says, "now make me your best offer".

[JoeyJeremiah]

Or invites you for supper... along with the 2 other highest bidders.

Then he discloses to the 3 present, what they all bid and says, "now make me your best offer".

I think I'd walk out.

[flea beetle]

I had a lady trying to sell a quarter next to me. She put a flyer in all the locals mail box. I phoned and made an offer knowing full well I would be the top bidder. She phoned me back a week later after it closed and said that she thought it was worth more. I told her that was my offer and I was sticking to it.

She phoned a year later and said she was trying to sell her quarter again. I gave her an offer $75,000 less than the first and she got all huffy and asked what happened to my first offer from a year ago? I told her I had just bought 5.5 quarters right next door to hers for the exact same price as I offered her the second time. She didn’t sell to me, but I know it didn’t sell for more than my first offer. I don’t think I had a chance at buying it, she just wanted me to price it to sell it to the other guy. That’s life!

[poorboy]

Here east of Calgary you will pocket more money with a realtor. Know 2 separate parcels that were put up for tender and bids were mediocre. Both listed with a realtor and sold immediately for 25% more.

Most tenders have seemed to become a push and shove deal amongst the 2-3 highest tenders after closing. Most guys know this and have cut their tender price back to leave room to negotiate after.

Ignore previous sales. In a rising market they are all out of date and below current market values. Pick asking prices 20% higher than the highest value you have heard. Market
here is still going higher. Lots of money in some pockets.

Don’t let your realtor pick your price. They have NO incentive to get you the highest price. Their only focus is to pick a price that will sell immediately and pocket the commission fast.

Few land sales locally have brought $1000+ more than anyone expected from buyers 200 miles away. Tender packages don’t even attract buyers like this.

[flea beetle]

Or invites you for supper... along with the 2 other highest bidders.

Then he discloses to the 3 present, what they all bid and says, "now make me your best offer".

This sounds like you are speaking from experience!

[15444]

Having been involved in two separate land deals this spring with two different lawyers, I can offer some insight.

Realtors commission across the board here is 6%. The only thing they really offer is advertising coverage. Their social media presence is huge on Facebook and Instagram. Everyone in a 200+ miles radius will know about it, whereas private deals and tenders only reach a small percentage of actual population, usually through local ads in papers, which no one under 40 reads anymore.

Nothing beats an open bid process. Shit on tenders. Find two, three or six guys that hate each other, and let them scream numbers at you. I did just that with a prick cousin on 1st deal. If the seller had gone to tenders, she would have lost out on over $100k. She just kept taking bids from both of us until I had the highest. Cousin was pissed that she kept taking bids instead of one sealed tender, just because he thought he could get it comparatively dirt cheap.

The 2nd deal was a formal offer process through lawyers, which is all that is really needed. Advertising was minimal and 90% of people that knew about it was word-of-mouth; as very few read newspapers, let alone classifieds. Problem is seller kept verbally changing his conditions before the offer date closed, which pissed a lot of prospective buyers off, and which the lawyers say is completely ok as long as nothing changes after the formal offer is signed by both parties. This was a pre-foreclosure sale which could have gone very smoothly if the idiot seller had taken one of two good pre-approved financed formal offers, rather than a crazy number written on a scrap piece of paper by a local young buck who has no financing and no collateral. That is going to be a gong show that will stretch out for the next month and likely end in an actual foreclosure sale.