Just like a residential home sale, selling a farm or agricultural property will come with a few extra expenses – all of which you’ll want to be prepared for.

Our team has been selling country real estate for decades. As part of our market-specialized expertise, we’re well-versed in the special costs that you may incur during the selling process. 

If you’re thinking about selling your farm or agricultural property, this blog can help you get an idea of what selling costs look like, and how you can prepare for them. Let’s get started. 

Thinking about selling your Farm or Agricultural Property? Click here to read our blog about the importance of working with a specialist. 

Moving Costs

Hiring professional movers is a common cost that applies to most real estate transactions. However, in the case of agricultural properties, these expenses can get somewhat intricate.

On a farm, there’s usually a whole lot more that needs to get moved compared to your average home sale. On top of your personal belongings and furnishings, you could also be relocating a wide range of your business property, like machinery, equipment, and even livestock. 

While a standard moving company can help with everything in your home, you may wish to make separate, special arrangements for business assets. This will make the process smoother, however, it will mean leaving room in your budget for multiple moving costs.

Have questions about home selling? You may find some helpful tips in these blog posts. 

• Do I Need to Make Property Upgrades Before I Sell?
• Moving Up to a New Home – Should You Buy or Sell First?

Real Estate Agent Costs

Getting a great result from your sale starts by working with a real estate agent who specializes in farm and agricultural properties. As a result, one of your primary selling costs will be agent fees.

Rather than a pre-set upfront cost, agent commissions are typically a certain percentage of the final sale price. When you sign a listing agreement with an agent, they’ll ensure you’re aware of the commission structure. Don’t forget – in Ontario, real estate agent fees are also subject to HST. You’ll want to keep this in mind when calculating your potential commission costs. 

Legal Fees

Along with a Realtor®, selling your farm will require the help of a lawyer. During a property sale, real estate lawyers take on a wide range of duties and responsibilities. It’s their job to ensure your interests are protected and that the legal elements of your sale go smoothly. Especially with rural properties, their specialized expertise will be super important. 

Like a real estate agent, working with a lawyer will also add to your costs. However, compared to agent commission, the range and types of legal costs can vary quite a lot. After assessing your property and getting to know your goals, your agent can help you estimate what your legal expenses could look like. 

Taxation on Business Assets

While not exactly an upfront expense, it’s important to be mindful of the tax implications of selling an agricultural property. At the end of the day, taxes will impact your bottom line just like any of the other items on this list. 

In Ontario, if you choose to sell any farm assets with your property, such as equipment or machinery, there will be some degree of taxation. With that in mind, it’s important to work with a tax professional who can provide guidance on how any sold assets should be treated for tax purposes. This can help you plan for potential liabilities and explore strategies to minimize the impact come tax season. 

Selling property in Durham Region or the Kawartha Lakes? Check out these blogs for other advice! 

• Attracting Relocators When Selling Your Durham Region or Kawartha Lakes Home
• The Importance of Agent Experience
• Tips For Selling a Home During the Winter

Selling With Puckrin & Latreille

Planning to sell your farm or agricultural property? You’ll want to choose the right professional for the job. Here’s the deal, most residential real estate agents won’t be able to help you get the best results from your sale. Instead, you need a specialized team of agents who understand the unique nature of these transactions. That’s where we come in.  

At Puckrin & Latreille Real Estate, we have decades of experience selling rural properties just like yours. We have the market-specific skills, expertise, and resources to help you get the best result possible. 

Ready to sell your rural or agricultural property? Our local expertise can help guide you toward a successful sale. Call us at 905-985-7300 or click here to send us an email. 

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