Pond Boss Forums INTRO Questions & Observations Seeking advice on selling tract of land in Illinoi

We are thinking about selling a 160 acre tract of land in Central Illinois. Half farm ground and half hunting ground with timber that will soon be eligible for timber harvest. It is a good deer, squirrel, morel mushroom hunting area.

We have never done this before and wonder if selling it by a well advertised auction or selling another way, like listing with real estate agent, or selling it ourselves makes more sense.

Does anyone have any advice about the best way to proceed. This land is not where we live and although it has a place for a decent size pond none has been built.

Bing, if ya list with a relator and they sell it, consider what their commission will be. In Indiana they get 7%. I bought my trailer with no relator on either end. Saved myself and seller lots. I just researched what was legally necessary and it was'nt all that complicated. If you're not comfortable doing that, maybe someone else will chime in. Probably get bashed if there are real estate agents readin. Won't be the first time.

What's the break down on tillable vs wooded? Are you trying to sell it as farm land or as recreational property? I agree with Bob. realator commisson is a big factor. Having just sold a property in Illinois in 2014, I can tell you that they will ask for 7 but it is negotiable. I sold mine at 5. FWIW If you are trying to price it as recreational property then I would think you need to get to the big city markets like Chicago with the advertising.

My money is on Bing to list it himself and save the commission fees. I'd use a realtor as a last resort, if your efforts to list and market don't pan out. You've lost nothing but some time.

If the tillable is good and in one or two chunks you may get a better price by selling the tillable to a farmer for a much higher price per acre than you'd get for selling 50/50 ground.... Farmers like tillable land, not 50/50 ground... Then sell off the timber to a hunter and maybe include just a few acres of tillable in that parcel to help keep it zoned agriculture for the hunter buying it.

In my opinion if that is feasible to divide like that you can easily sell the tillable to local farmers either by visiting the local cafe at 5 am or at an auction and the timber you can use a realtor for to reach a broader market outside the local guys.

Also as a courtesy, track down the neighbors to the property and see if they are interested in purchasing it as well. Could make for a quick seamless process. Land is always the most valuable to those it connects to.

Ah yes...n8ly shows to be wise beyond his years.

We can all be proud.

Ditto to what Nate said. I also think you should contact a forester to get a value of the timber on the property. That might have an influence on the value of that portion of the property. Around here, some farmers buy timbered tracts, log it, then turn it into farm ground. They get a majority of their land cost back from the timber on some tracts.

To do the final paperwork, look at what an attorney would charge vs. a real estate agent.

Definitely check with neighbors to learn if they're interested in purchasing (unless ya just don't like yer neighbors).

And you may want to divide as mentioned - hunters one parcel and farmers the other parcel.

Either way, you can sell it yourself, and probably more affordable to have an attorney assist if you don't feel comfy (versus realtor).

www.landandfarm.com

X2 on skipping the realtor if possible...and also you'll likely get more if you can split the tillable from the non.

Not sure what county the ground is in and also the soil types involved, but around the Macoupin/Montgomery/Greene/Jersey county areas the tillable is a good 4-5X higher than the non. And most of the bigger farms don't want ANY non-tillable if they can help it.

If you don't mind me asking what is land selling for down there?

In my area in Ontario Canada its around 12,000-19,000 per acre.

Cheers Don.

Dono - I can tell you that in my area good tillable will be in the 10k-15k range depending on the soil types.

Non tillable is a crap shoot. Low end would be 2k. As high as 6k. It depends on a whole bunch of variables, the main one is who wants it and how bad.

I won't get into the realtor issue. I use them for a lot of reasons that have very little to do with $.

If it were me, and it's not, I would break it into 2 tracts but only if both tracts had road access. If you log it, you will make $ but dilute the value of the remaining property for recreation purposes. Those guys make a mess.

With ag commodity prices dropping, land prices are following.

I agree. We're leasing 45 acres to our next door neighbor. He wants this adjacent land if we ever sale it, and he keeps the lease current knowing he'll get first shot at the property if it goes up for sale. He gets to use the land he wants, we make enough to cover the taxes, and he knows the land is his if we sale. It's worked out very well for both of us.

Bing, not sure how this property is laid out, but if you divided the land and sold it as 2 parcels, would a potential buyer have to provide an easement to either section?

We're wanting a 35 heavily wooded tract behind us, that is totally useless to anybody but us. There is an easement to this property on a neighbor's land, but he doesn't want it, and nobody else seems to either. We'll make an outrageously low bid if the market drops a little. So far, there's no signs of that happening for a while.

First of all, sorry that I posted this and then skipped out for about a month with no good Internet access.

Still up in the air about how to proceed, but some of these comments help solidify my thinking. The land is split about 50/50 with 80 acres being tillable and 80 timber. I have had the timber value surveyed and it could fetch several thousands of $$$ if harvested and sold. That will be pointed out to any potential buyers or on a auction sale bill.

I will contact the next door land owners and see if they want it, I know one does, but isn't too interested in buying at anything but a forced sale price, which it is not.

Yes we would split and sell farm then timber land if necessary. And if we go with an auction we will do the sell timber first, farm ground second, then hold those bids and reopen to see if anyone will increase the bid amounts to buy it all. A very common auction method which often adds several thousand to the total sale price.

Thanks to all for your comments.

If the land is sold in two pieces there will be no access issues. Both parts have public roads running beside them, as it is a "corner lot" on a county road and a state highway.

The guys at White tail properties could probably help you.

If I had the money I would just write you a check.. Btw, what county is it in?

Fayette

I do own a real estate company in East Texas and we deal with timber tracts all the time.Two things I would mention is #1 someone who knows all the LEGAL matters in the sale needs to help you. A couple of words changed around on a contract can cause you thousands of dollars. #2 Don't forget to reserve your mineral rights if you have them and want to keep them. If you want to include mineral rights in your sale you can ask a good bit more per acre for your land. One other thing.Its your land, You are the seller, EVERYTHING IS NEGOTIABLE. Don't be afraid to hold your ground. Good luck

I agree with Flame. A GOOD realtor is worth their weight in gold. Unfortunately, most realtors list your property on the MLS, sit on their butt and wait for their check. If you can find that person they will be worth the 5%-7%. Only if you have done all the market research would I dare go it alone. I have done multiple real estate deals and I always come out better with a GOOD realtor on my side. Ones I did on my own did not go as well. Find one that specializes in your type of land. Get feedback from old customers. If they specialize in that type of property they might even have buyers already looking.

IMO If you use a realtor, do not rely on them entirely to advise you on the price to list your property. We recently sold a property the realtor suggested we list at what we felt was a low price. We said no and listed it much higher. Sold about half way in between the two numbers. What if we had listed at the realtor's suggested price? All buyers want you to come down some. Maybe we would have got several K less than the realtors suggested sale price? Just saying don't price yourself out of the market but you can always come down but not up in price. The difference in commission to the realtor is not that much if they can get a quick sale and a quick check for them.

Pay a qualified appraiser a few hundred bucks up front to know what the property is worth before you list it is my advice. End of the day, if the buyer is going to finance the purchase, the loan won't go thru if the property doesn't appraise near sale price or below anyway.

Just as a footnote on appraisers, You would be surprised how many appraisers come to my real estate office to ask us for recent sales in a particular area or of a specific type of property so "they" can do "their" market analysis.I'm just saying, Know Your Market!! Get as much info as you can, wherever you can and then make your plan.A lot depends on how fast you "want" to sell or "need" to sell.Find documented proof of similar sales in your area within the last 12 months. Look at all the data and make your decision on price from there. At that time you can start your marketing plan. Good luck and once again hold your ground!!

People are sue crazy these days. I was married to a broker for 24 yrs, And my daughter is a realtor. And my wife now is a realtor. The stories of lawsuits are many. Protect yourself by using a relator. When buying land I use a relator who has a degree in forestry and is knowledgeable of the areas I look at. A relator who deals in land can give good advice in selling and buying and give a lot of protection from the ones who sue at the drop of a hat. Just my two cents from life's experience.
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