Whether you are buying or selling a ranch for sale, the sales process can be a complicated and lengthy affair, usually involving multiple stakeholders, lots of moving parts, and millions of dollars. For owners of legacy ranches throughout the American West, ranch holdings can make up a significant portion of their total net worth. Many times, legacy ranches have been passed down from one generation to the next, and selling the ranch creates one of the largest personal liquidity events of a lifetime, if not multiple generations. Given the significance of the transaction, it is vitally important that the deal go smoothly and no money be left on the table.
For buyers of Rocky Mountain ranches, the acquisition of a ranch property can be one of their largest asset purchases, so it is crucial that they fully understand all issues associated with the ranch. In order to realize an eventual return on their investment, the buyer must understand values so as not to overpay, and they must also recognize all underlying issues associated with the ranch so as to protect themselves against any future unexpected expenses.
Given the serious consequences of a buying or selling a ranch, the first and most important decision a landowner or buyer must make when beginning the process is: Which ranch brokerage firm should I hire to handle this important process?
More than any other sector of real estate brokerage, ranch brokers must “wear a lot of hats” and be well-versed in a wide variety of topics that are centrally connected to the actual sale of land: water rights, mineral rights, agricultural production, conservation easements, title concerns, wildlife enhancement, public lands issues, and recreational considerations, just to name a few. Fully identifying and understanding these issues, as well as the value that they add or deduct from a ranch, can very easily determine whether or not a transaction is a success or complete failure.
There are six essential characteristics that buyers and sellers must look for when hiring a ranch brokerage to handle the sale or purchase of their ranch. For the next few weeks, we will be exploring each of these characteristics in detail in a recurring weekly blog series.
Check back tomorrow for Part 1: Essential Ranch Broker Characteristic #1: Experience