Over 36 million acres of Iowa’s rich, dark soil lures developers imagining commercial potential while rural woodlands appeal to outdoor enthusiasts seeking peaceful refuge from urban life. Regardless of their motivation, many land owners find selling to an Iowa land company offers added control and efficiency compared to a traditional 30-60 day real estate sale involving financing.
As land sales continue to shift from a retail model to an all-cash transaction, both buyers and sellers reap major benefits of transacting in this manner. Cash purchases avoid lengthy closing timelines often resulting from financing contingencies and inspections, as well as property management headaches. In addition, reputable land companies offer fair cash prices reflecting the risks and costs avoided by the seller – often much less than what would be achieved with a fire sale to an individual buyer.
The stability of a cash pros and cons of selling to an Iowa land company purchase also reduces exposure to the roller coaster ride of volatile stock market returns. Investors seek safe haven assets and appreciate that farmland values are historically less volatile compared to other investment property. This is especially important as investors look to diversify their portfolio with other assets that have backed off from recent highs, such as equities and fixed income investments.
Even though farmland values have backed off from their highs of the last decade, the fact is that land still delivers an impressive return on investment. As a result, farmland is increasingly popular among investors. The current volatility in the stock market makes investing in farmland an attractive and secure way to grow their wealth.
Besides the financial benefits, investors recognize that land is one of the few asset classes to provide a guaranteed 1.8%-4% annual return on investment through crop revenue. Land prices may dip in the near future, but investors know that when they do buy land, they will be able to sell it for an even better return in the future.
For family farms and small acreage owners who do not intend to continue farming their land, a cash sale offers an opportunity to access equity sooner rather than later. Families selling inherited land can benefit from favorable tax treatment of heirloom properties. Likewise, farmers facing personal hardship can use a fast, easy and simple sale process to address financial issues.
Aside from financial benefits, there are several other reasons why Iowa land owners choose to sell to an Iowa land company. For example, a reputable company can streamline the selling process to eliminate time-consuming steps like scheduling showings, obtaining an appraisal and creating marketing materials. In addition, they can often offer seller concessions to enhance the sale of a property, such as paying for closing costs or covering repair expenses.
As an additional incentive, selling to an Iowa land company can eliminate real estate agent commissions. This can save owners a significant amount of money when compared to a traditional sales transaction. To maximize the benefits of selling to an Iowa land company, it is important to understand the perspectives of potential buyers and the unique features of each property. By doing so, land owners can ensure that their property will be sold quickly and at a price that is mutually beneficial for all parties involved.