Consultation • Valuation • Brokerage Services
Your investment. Your Farm.
Land Consultation
Protecting Assets - Preserving Wealth.
NOW THAT YOU KNOW WHAT YOUR FARM IS WORTH — WHAT’S NEXT?
KEEPING THE FARM:
Lease— Who is your tenant going to be? Is the current arrangement written or verbal? How long has the current arrangement been in place? Is the lease at current market price? Is there any language as to time of lease? (How it ends, does it address double cropping, if pasture,does it address time in, time out and how many cows and calves?) Is there language to keep your farm’s soil in good condition? Leases need to be revisited and re-written every year.
Other Income— Does the farm have any other attributes that could bring in additionalincome for you and your family? Additional leases for recreational use can add value to yourfarm-they can also create liability.
Improvements— Is there water availability to develop for irrigation? Is there surface water that can be developed for ponds or a watershed lake? Water development always creates value.
Title— Are there other siblings involved? Are the interests divided or undivided? Undivided interests are very common and can create a whole host of problems. How will you take ownership: individually, or as an LLC or partnership?
Management of the Farm— Do you have the knowledge and the time to look after your farm,or will you need someone to look after your investment if you live out of town or out of state?These are just a few of the many situations we have helped clients and customers with.
SELLING THE FARM: Your tenant or family member wants to buy the farm; accurate valuation is the first step. Results is engaged to either negotiate on behalf of the owner, prepare contracts and close the deal, or in some instances the buyer and seller have worked out their own terms, but need help with contract preparation, title work, closing, and exercising 1031 exchanges.What are your plans for the sale proceeds? If the basis is stepped up, you should not have capital gains to pay. If you inherited the farm a while back, and your basis is lower than the market price today, an educated decision would need to be made as to whether to pay the capital gains or exercise an exchange.What are your options if you want to sell on the open market? There is no one size fits all forfarms! Experienced brokers can evaluate what would be best for the geographic location of your farm.
1031 Exchange— Results has helped exchange thousands of acres, both forward and reverse.
Valuation
Whether you plan to sell your property or retain it, you need to have an accurateassessment of your farm’s value. Broker Price Opinions can be of great value. ResultsOpinions consider soils, capabilities, water appropriation, minerals, wind leases,solar leases, and of course, location.
Consulting
Whether you plan to sell your property or retain it, you need to have an accurateassessment of your farm’s value. Broker Price Opinions can be of great value. ResultsOpinions consider soils, capabilities, water appropriation, minerals, wind leases,solar leases, and of course, location.
Brokerage
Services
Whether you plan to sell your property or retain it, you need to have an accurateassessment of your farm’s value. Broker Price Opinions can be of great value. ResultsOpinions consider soils, capabilities, water appropriation, minerals, wind leases,solar leases, and of course, location.
Valuation and Broker Price Opinion in Agriculture Consulting
Understanding the value of a farm is crucial for any landowner, whether the goal is to keep or sell the property. This is where the importance of land consultation and agriculture consulting comes into play. These services provide critical insights into the value and potential of agricultural land, guiding owners through various decisions and strategies.
Keeping the Farm
Once the value of a farm is established, several factors come into consideration for those who choose to retain their property. Key among these is lease management. A well-structured lease, whether written or verbal, should reflect current market prices and include terms about its duration, farming practices, and conditions for soil preservation. Revisiting and updating the lease annually is a good practice to ensure it remains relevant and beneficial for both parties.
Other income opportunities can arise from the farm’s unique attributes. For instance, leasing land for recreational activities can generate additional revenue. However, this also introduces liability issues that need to be carefully managed.
Improving the farm can also add value. Developing irrigation systems or creating ponds and lakes can significantly increase the land’s worth. These enhancements not only improve the farm’s productivity but can also make it more attractive to future buyers or lessees.
Ownership and management structures are other vital aspects to consider. Issues arise, especially when multiple siblings share undivided interests in the property. Deciding on the form of ownership, whether individually, through an LLC, or a partnership, can have long-term implications on the management and future disposition of the property.
Selling the Farm
When selling, accurate valuation is the first step, especially if the buyer is a tenant or a family member. Engaging a professional service like Results for negotiation, contract preparation, and closing deals ensures that the transaction is fair and beneficial to all parties involved. Decisions about the sale proceeds are critical too. If the basis of the farm has been stepped up, capital gains taxes might not be a concern. However, if the basis is lower than the market price, options such as paying capital gains tax or opting for a 1031 exchange need to be considered.
Each farm is unique, and there’s no one-size-fits-all approach for selling on the open market. An experienced broker can provide a tailored strategy that best suits the geographic location and specific characteristics of your farm.
1031 Exchange
For those considering a 1031 exchange, working with a company experienced in both forward and reverse exchanges is beneficial. This option allows the seller to defer capital gains taxes by reinvesting the sale proceeds into a new property.
Accomplished Land Consulting (ALCs)
In the realm of land brokerage, Accomplished Land Consultants (ALCs) play a pivotal role. ALCs are land real estate brokers or agents who have completed a rigorous education program and have a high level of experience and transaction volume. Their expertise in various aspects of land transactions, including legal, soil types, investment analysis, timberland valuation, and more, makes them invaluable in representing clients in land deals.
Real Estate Consultant or Real Estate Agent — Which Do You Need?
Before deciding whether you need a real estate agent or a real estate consultant, you must first understand what duties are owed to you by either professional.
Fiduciary Duty — What Is It and Why Does It Matter?
Fiduciary Duty is at the core of any professional relationship involving money, land, homes, investments, or other valuable assets. A fiduciary is legally and ethically obligated to place the client’s interests above their own.
That is a significant responsibility — and one you should carefully consider when choosing who represents or advises you. Ask yourself: how many agents or consultants are truly capable of putting a client’s interests ahead of their own financial incentives?
True representation requires loyalty, confidentiality, competence, honesty, and sound judgment.
Experience in the Specific Field Matters
Real estate is not a one-size-fits-all industry. If you are buying or selling homes, land, investment property, industrial property, commercial property, or retail space, you should work with a licensed professional who is experienced and accomplished in that specific area of the market.
No one person is highly experienced in every segment of real estate.
Personally, I have been licensed in the real estate business since 2003. Early in my career, my focus shifted toward the land market due to my lifelong involvement in agriculture. Over the years, I have continued to be a top producer, though not in the conventional sense. Much of my work involves private treaty transactions conducted discreetly and strategically for specific client needs.
I have belonged to multiple real estate boards and organizations, including the Kansas Association of Realtors, National Association of Realtors, and the Realtors Land Institute. I also held the Accredited Land Consultant designation for nearly 15 years.
I no longer belong to these organizations because, in my opinion, they have repeatedly failed to uphold the core principles of true fiduciary representation.
What Does a Real Estate Consultant Provide?
A real estate consultant should provide strategic guidance centered entirely around the client’s best interests.
This includes:
- Fiduciary Duty with the client’s interests placed above all else
- Market research and analysis
- Evaluation of options beyond simply selling the property
- Professional contract preparation
- Guidance regarding exchanges and transaction structures
- Understanding title work and identifying ways to resolve title issues
- Strict confidentiality between consultant and client
Confidentiality is paramount and should be treated accordingly.
Consultant vs. Traditional Broker
In many situations, a consultant can provide the same strategic knowledge and expertise offered by traditional brokerage representation — while operating under a more flexible and cost-effective structure.
A consultant may provide:
- Seller and buyer representation guidance
- Fee-based services tailored to the client’s specific needs
- Project-specific assistance that is not necessarily sale-driven
- Guidance regarding undivided interests, mineral ownership issues, and title problems
- Contract preparation for family transactions, tenant purchases, or private-party sales
- Strategic planning that may reduce unnecessary commission expenses
- Assistance that, in some cases, may reduce the need for costly attorney or CPA involvement
A qualified consultant should have the ability to address the many aspects of a property, transaction structure, and client objectives — often at costs significantly lower than traditional commission structures or extensive professional service fees.
Have Questions About Your Land?
Results Land Co is here to help.
Just fill out the form below or give us a call.
Results Land Co.
- 316.250.4260
- 21309 S. Willison Rd Haven, KS 67543 US