The United Kingdom is composed of 70% agricultural land. As such, selling farmland remains one of the easiest ways to gain profit from your property. Traditionally, farms are sold and purchased through auctions. But the age of digital marketing, as well as legislative changes, are reshaping the way farms in the UK are bought and sold.
Auctioning off farmland remains a popular method especially for selling off small blocks or farms and in some cases when it involves a probate property sale. But real estate agents now have the capability of reaching a more extensive clientele because of online advertising and digital marketing. This translates to the increase of conducting farm sales & purchases through a private treaty.
Choosing the right method for selling farmland
There are three ways of selling farmland in the UK, each with distinct features and advantages that suit particular situations. Here’s how each one is distinguished from the other.
- Private treaty sale. By the name alone, sale through a private treaty is a negotiation between the seller and a buyer conducted by submitting an offer or subsequent counteroffers to perfect the contract. A private treaty tends to be longer, and the seller can fix the price to attract buyers. The longer selling and purchase window makes it more flexible for both parties to discuss terms and conditions amenable to them. The buyer also has more time to inspect the property, and the seller also has the final say on which offer to accept. The process is simple, more relaxed and is ideal for disposing of high-value property like farmland.
- Informal tender. In an informal tender, the seller pays a real estate firm a one-off fee for them to handle the property’s sale. The firm markets the property for a set amount of time where potential buyers have the opportunity to view the property and give their written bids. The vendor opens all tenders received from potential buyers at the same time. The seller can then choose which of the offers to accept. A written offer accepted is not a binding agreement until the obligation is completed through a contract of sale.
- Auction. A farmland auction is a straightforward process which is traditionally the preferred method of selling such property in the UK. The result of an auction always leads to the highest bid closing the deal. For the seller, an auction has the advantage of eliminating buyers with no real interest to buy the property. The process is fast and binds the final bidder to complete the sale within the day; otherwise, they may be subject to losing a percentage of their deposit or face legal action from the seller.
Nowadays, selling farmland in the UK has more implications than before. Each selling method has unique advantages and possible challenges. With the help of a real estate solicitor, you can better understand the options available to you, and select a selling method that addresses time constraints while at the same time attracting the best possible offer for the property.