Dream of Owning a Vineyard? Things To Keep In Mind Before Investing In Agricultural Property
Any investment opportunity takes strategizing, especially the more unique ones. Given the volatility of the economy lately, opting for investments where scarcity is a factor can lead to a large advantage - if researched enough and executed strategically. This is especially true for agricultural property, which can be in limited supply.
Farmland portfolios attract much attention as agriculture becomes a more prominent investment vehicle and competition is steadily mounting. This is an area where level of preparedness will determine the likelihood and speed of your success.
So what are the types of things you should account for here and how can you make things easier for yourself or any stakeholders you are investing with?
Search Cooperatively
Set criteria for the search with any stakeholders and agree to it. Ensure that you are all on the same page with your expectations. Be patient with each other, as buying farmland can take years and test your shared endurance. Remind each other that any delays will only drag the process on longer.
Prepare questions ahead of time for property visits to ensure you get all the necessary insights you desire. Take photographic evidence of any areas of concern. Consider consulting a specialized agent who can impartially resolve disputes and unearth compromises. They will help you engage with private sales rather than online advertisements alone.
Think About Time and Location
Anticipate the differences between buying agricultural and residential real estate. Respect the variables that matter more than you might expect.
Think about the seasons. Consider that agricultural land may look its best in the summer and spring and hide potential problems. Know that transactions are not strictly seasonal. Prepare yourself to be somewhat flexible in managing your expectations. Request images of the agricultural assets at all times of the year to have a more well-rounded view of the purchase.
Research the location of areas further. For instance, a deep dive into this beginner’s guide about vineyard real estate helps gauge the viability of Texas’ three main grape-producing regions. Consult expert advice to see where wineries are located if you wish to profit from produce. Trust they will dispatch teams to inspect your ideal property and help facilitate your purchase. Note they can help you with other types of land purchases too. Approach comparable services if you live elsewhere in the country.
Be Wary of Auctions
Try not to let desperation get the better of you. Remember that the frantic nature of residential property markets does not apply here.
Act through real estate brokerages rather than turning to an auction. Avoid auctions due to;
Prices rising well above reasonable estimations due to desperate bidders.
The seller’s solicitor potentially not being well-versed in agricultural matters or disclosing relevant information, protecting their client’s interests only and declining questions.
Hurried purchases cause the buyer to not fully understand what they have bought.
A lack of privacy around the purchase creates additional anxiety and pressure.
Note that auctions are a legitimate way to secure an investment property. Approach agents instead because they will advise you through the process and provide counsel. Let their guidance instil you with confidence and proceed from there.
