Putting a wrap on 2019!

By General

As we wind down the calendar year, I wanted to take a moment to say THANK YOU to all of our clients who helped make 2019 a phenomenal year for our business! We’ll end the year having contracted almost $20M in land in Cass County, ND alone, and for that we very thankful! We are truly blessed to be able to serve so many great clients in the southern Red River Valley. We thank each of you for your trust and your business, and we hope we can continue to be a resource for you and your family in the future. We wish you all a VERY Merry Christmas and a blessed New Year!

From our family to yours,

Andy Westby & the team at Goldmark Commercial Real Estate, Inc.

How to settle the tax bill when selling farm land

By General, Owning & Selling Farm Land

Every now and again, I find clients who are uncertain or upset about how taxes should be paid/split when selling farm land. While many terms of a land deal can be unique, we generally see a common theme for how to handle taxes when selling farm land. The general rule of thumb goes like this…the one who gets the benefit from the land for the current tax year (either in income or the crop) pays the tax. Let me give you a couple of examples:

  • Land sold by an owner (family/investor) that is NOT farming the land – To determine who pays the taxes in this situation, ask this key question:
    • Has the seller received the rent income for the year?
      • Yes: Seller pays the full taxes (this assumes the seller keeps the rent check).
      • No: Buyer pays the full taxes (this assumes the buyer gets the rent check).
      • Partially: It isn’t uncommon for farm rents to be paid 50/50 in the spring and fall. If the seller has received half the income, then they usually would pay half the taxes. This again assumes the seller is keeping the check for half of the rent.
  • Land sold by an owner who is also farming the land – This one is more simple generally…just ask this:
    • Is the seller going to be planting & harvesting the crop on the land during the year the land is sold?
      • Yes: Seller pays the taxes (this assumes buyer takes possession after the crop year ends)
      • No: Buyer pays the taxes (this assumes buyer takes possession before the crop year starts)

Of course this point can be negotiated, but usually the above standards are applied by buyers and sellers of farm land in our area of North Dakota and Minnesota. If you have seen other methods used successfully or have questions, feel free to contact us to share.

Until next time!

Andy

 

2019 Market Update

By Ag Land Values, General

We are overdue to give you a market update on land sales in the Southern Red River Valley, so here goes!

  • Value wise, we are seeing an increase in farm land values in 2019 compared to 2018, specifically on the ND side in Cass and Richland counties. Cass County especially has had a strong year in terms of price/acre results!
  • Volume of land sold so far is lower than in 2018, however there will be more land sales in Q4 of 2019 that may end up pushing us above the 2018 volume.
  • Overall we are seeing some better land being sold in 2019 compared to 2018. This is one reason we are seeing higher values overall, but demand in general has been strong as well.
  • There are more buyers than sellers in the farm land market right now, and we expect that trend to continue for awhile.

We’ll share some specific stats in early 2020 once all the 2019 sales have been recorded. Until then, if you want specifics or are curious about land values in your immediate area, please contact us any time and we would be happy to share.

Until next time!

Andy Westby

How can I find recent sale prices for farm land?

By Ag Land Values, General

As a Realtor & Auctioneer, I often get asked by friends and family how much a specific piece of land sold for recently. It’s human nature for people to be curious about area land prices, either because they maybe own similar land or want to buy land like it in the future, or perhaps they are just being nosy! Regardless, I think having current, accurate data about the market is important for many people. Here are a few ways you can research land prices if/when the need arises.

  • You can visit or call your county recorder’s office and ask for a list of recent ag land transactions or deeds to review. In North Dakota for example, most recorded deeds in the county will likely include the sale price right on them, unless they are between family members or title is exchanged via a Quit Claim deed (prices are exempted on those).  Some counties maintain a monthly or yearly spreadsheet of ag land sales that they may provide to you for free or for a small fee (Clay County, MN has one for $20 for example where Cass County, ND will send you one for free).
  • In North Dakota, you can subscribe to a service called NDRIN (North Dakota recorder’s information network @ http://ndrin.com/). This website aggregates digital copies of ALL recorded documents across the state so you can search by things like Grantor (seller), Grantee (buyer), or even section-township-range. It costs money each month to subscribe but for people who need regular access to sales data it is a great tool. Minnesota has an online tool as well at https://www.mndor.state.mn.us/ecrv_search/app/openCustomSearch to research sales history but I haven’t found it as current or helpful as NDRIN on the North Dakota side.
  • Call your local agent/auctioneer! Most people “in the business” should be up to speed on the local market. If they really have it together they can provide you with a wealth of recent transactions, even the ones they weren’t a part of. Worst case they may be willing to share details on the deals they were involved in, since once they have been recorded they are a matter of public record usually anyways.

If you are curious about recent land prices in the Southern Red River Valley, do not hesitate to contact us as we have a wealth of sales data we would be happy to help share should it be helpful to you!

Until next time,

Andy Westby

SOLD! Recent Transactions, May 2019

By SOLD! Recent sales

Hello and welcome to another successful “Closing Day” report! The Goldmark Ag Land Sales & Auction team was proud to help a client sell a great parcel of land in Cass County, ND on the edge of South Fargo. This incredible piece of land was just one mile south of Davies High School in Stanley township and offers great potential for future development. We have sold a number of parcels just like this in recent years and are proud to help yet another land owner find success. More info about this great parcel can be found below. Contact us if you would like help in selling or buying land in the Southern Red River Valley as well!

Stanley Township, Cass County ND

Until next time!

Andy Westby

New Listing Alert! Cass County, Raymond Township Land

By New Listings

The Ag Land Sales & Auction team at Goldmark Commercial Real Estate is proud to present another excellent parcel of farm land with GREAT future development potential. The property is just on the northern doorstep of West Fargo, putting this farm land in the growth path of the city. Owners will benefit from farm land income before the land is eventually developed. This land is fully protected by the proposed FM Diversion is priced to sell!

You can read more about the land here. If you have any questions or interest, please do not hesitate to contact us!

Until next time!

Andy

SOLD! Recent Transactions, March 2019

By SOLD! Recent sales

Here we go again! Checking in with another successful “Closing Day” to report. The Goldmark Ag Land Sales & Auction team was proud to help a client privately sell a great parcel of land in Cass County, ND. This incredible piece of farm land sits in Gardner township and offered the absolute best, most productive soils in Cass County. More info about this great parcel can be found below. Contact us if you would like help in selling or buying land in the Southern Red River Valley as well!

Gardner Township, Cass County, ND

Until next time!

Andy Westby

SOLD! Recent Transactions, Feb 2019 (part 2)

By SOLD! Recent sales

Yet another successful “Closing Day” to report! Late last month the Goldmark Ag Land Sales & Auction team was proud to help a client privately sell a great parcel of land in Cass County, ND! This parcel sits just north of West Fargo in Reed township and offered a nice mix of productive soil with long-term development potential. More info about this great parcel can be found below. Contact us if you would like help in selling or buying land in the Southern Red River Valley as well!

Reed Township, Cass County, ND

Until next time!

Andy Westby

SOLD! Recent Transactions, Feb 2019

By SOLD! Recent sales

Another successful “Closing Day” to report! Earlier this month the Goldmark Ag Land Sales & Auction team was proud to help a client sell a great parcel of land in Cass County, ND! This parcel was listed for sale and we spent a couple months negotiating and closing the deal. More info about this great parcel can be found below. Contact us if you would like help in selling or buying land in the Southern Red River Valley as well!

Stanley Township, Cass County ND

Until next time!

Andy Westby

What is a Private Sale?

By General, Owning & Selling Farm Land

As you likely know, there are MANY ways in which farm land can be sold. Most people tend to think of auction sales, sealed bid sales, or traditional listings. However, another VERY common method used in selling farm land is what we call the “Private Sale” method. No, this isn’t some Black Friday or Cyber Monday gimmick used by retailers. It is a very legitimate sales strategy we can employ to help Clients achieve their goals.

What is a private sale?

If you take a look at the recent land sales we have handled, you may notice a good number of these parcels show the method of sale was “Private Sale.” In those cases, the Client did not want us to publicly list and advertise their land. Because of that, we did not list it in the local newspaper or hang posters at all the area elevators and cafes. For various and valid reasons, these Clients wanted to maintain a level of privacy and confidentiality through the process of selling their land. The private sale method allows us to do just that.

How does a private sale work?

While this method of sale clearly limits the marketing strategies we can employ (sorry Agweek, no advertising budget for you!), it does not limit our ability to find buyers and achieve great results for our Clients. In these circumstances, first we work with Clients to build a targeted list of potential buyers. Then, we execute a strategy of quietly reaching out to let them know of the confidential opportunity to buy the land. We do this through phone calls, emails, direct mailings, and in-person meetings. As a result, we are usually able to get multiple parties interested in the land through these tactics. In the end, we are able to negotiate a good price without doing so in the public eye.

Perhaps you own land but do not want to tell the neighbor or family you are selling. Or maybe you just do not like your personal business aired on the line for all to see. Whatever your reason, we can help you discreetly and successfully sell your land should a Private Sale be your preferred method. Contact us today to learn more if you would like!

Until next time!

Andy

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