Asking the Right Questions - Interviewing a Farm & Ranch Land Broker
Purchasing a rural piece of property can be one of the largest investments you make in your lifetime, it is not only a financial investment but also an investment for hopefully many years of enjoyment for you and your family. Purchasing land may seem simple on the surface but if the surface is all you see there may be some future implications. Some of the subjects you see below are just a few of the challenges we deal with on a daily basis. I can say without a doubt that no deal has ever been the same, each have had their set of challenges. At Republic Ranches we thrive on finding a solution to those challenges. This is one of the reasons our team structure propels us above the competition. When a new challenge arises, most likely there is at least on of our associates on the team that has dealt with it before, being able to pull from that experience to find a solution may be the difference between a deal and no deal. It is imperative to have experience in your corner, whether or not we get the opportunity to share our experiences with you, I ask that you interview several brokers before you make your decision. Here are a few questions I believe are important to ask when trying to decide which broker to represent you, these are basic farm and ranch transaction questions that any farm and ranch specialist should be able to answer.
1.Are you a Farm & Ranch specialist? What type of properties does your company specialize in? Where do you predominantly do business?
2. Can you explain Mineral rights, Surface rights, and Executive rights? What are some ways I can protect myself as a buyer or seller not controlling 100% of the mineral estate?
3. Is my property located in an area where wind rights or water rights are a concern? If so what are some ways I can protect my investment?
4. As it has been statistically shown in Texas, rural land markets prices move with the oil & gas industry, what is the current position oil & gas markets and how can it effect my purchase or sales price in the near future?
5. Is there production in my area? If so, where and to what extent?
6. What are some management techniques I can implement on my property, whether I am buying or selling to increase my future resale value. (i.e. Grassland, Cedar, Cactus, Mesquite, Yaupon management, Pond/Lake, enhancements and management, etc.)
7. Can you give me an overview of the statewide/nationwide Farm & Ranch market, what are the current values, and what does each region have to offer?
8. What are your current sales numbers, years of experience, and can you provide references?
Specific Sellers questions:
1.Other than posting my property online what are other ways your company plans to market my property?
2.Does your company provide monthly updates on where my property has been advertised and how many people it has reach in each marketing avenue?
3. What are some ways your company is different from any other Farm & Ranch Brokerage Firm? What are some of the ways you are being innovative?
4. Will you be providing a detailed report on recent sales comps, current properties on the market around us, pricing strategy to fit my sales time frame and achieve my desired net return?
5. Do you have the ability to sell my property off the public market? What are some of the off market properties your company has sold? Do you have references I can talk to?
Specific Buyer question:
1. Being that that the mineral estate is the dominate estate in Texas how can I best protect myself from future surface production (Mineral, Water, or Wind)?
2. Can you give me an overview of basic cost in owning rural land? (Electricity, well, Taxes, maintenance, etc.)
3. What are some other things that I should be aware of when purchasing rural land?
4. Do you have the ability to find off market properties for me?
5. On top of getting all the information that the listing broker has prepared what are some of the other steps you take in researching every aspect of a desired property and confirming the listing agent’s findings?
6. What are some resources you can provide to help me enhance the property I purchase or help maintain it for future generations?
7. Can you help me file and teach me how to maintain an Ag or wildlife exemption after the purchase?