When you decide to sell a vineyard, the journey may be filled with stress and emotions. You’ve probably put your heart and soul into making the vineyard a success. But, maybe you’re ready to move onto something else or perhaps the vineyard is having financial difficulties. Whatever the reason is, you want to keep in mind a few tips on how to sell a vineyard property so that you can maximize your profits and reduce your stress during the process.
📝 Reasons for Selling a Vineyard
Owners of vineyards have a myriad of reasons for selling. Some of the most common reasons for selling a vineyard include:
- The vineyard has been improved to the point of capacity and the owner wants a new challenge
- A death has occurred and the family has no desire to continue operating the vineyard
- A major player in the wine industry wants exclusive rights to the grapes and is willing to pay a premium for the vineyard
- Financial difficulties are dictating the sale
There are many reasons why a vineyard owner may want to sell. However, the decision to sell is going to mean a major change in lifestyle, career, finances and other factors. You must analyze how these changes are going to affect you so that you can take advantage of advanced planning and presale activities.
📑 Special Disclosures When Selling a Vineyard
If you are aware of any property deficiencies, it is best to correct the situation before the property is put on the market. However, if you’re unable to correct the problem, it is best to let buyers know about such problems during the bidding process. Buyers are more open to accepting a property as is if they know about it before a purchase agreement has been signed. If, however, you wait until the purchase agreement has been signed to make such disclosures, the buyer may ask for a reduction in the selling price. If you desire any post-closing rights, these will need to be agreed to by the buyer. Some of these rights might include:
- The right to buy grapes or make wine
- A job with the buyer
- Lease of a vineyard or residence
- Water sharing or access rights
⚠️ Importance of a Show Ready Vineyard
You want your vineyard to have an irresistible appeal. When buyers see your vineyard, you want them to feel passionate about the prospect of owning it. Therefore, you must take a step back and look at your vineyard. Make sure it has curb appeal. The property should be neat and free of clutter. If there are any buildings on the property, it is a good idea to have those inspected so that any fixes can be identified and fixed before buyers have a chance to notice.
💲 Capital Gains Implications on a Vineyard Sale
When you decide to sell your vineyard, you must analyze your net proceeds. You cannot overlook tax implications and the effect of closing costs on your net proceeds from the sale. You may need to seek the advice of an attorney or CPA for assistance in developing a strategy and deal structure to reduce your tax burden. If you structure the deal as a 1031 Exchange, for instance, doing so will reduce your taxes, but this also requires advanced planning.
👥 How to Find a Real Estate Agent to Sell a Vineyard
Selling a vineyard is a unique transaction that is much different from selling a commercial or residential property. Therefore, you need a real estate agent who has experience with such a sale. A real estate agent who is experienced will be able to help you find suitable buyers and will also work to get you a premium price for your vineyard. Your real estate agent should have successfully sold vineyards previously. Choosing the right real estate agent can mean you will receive expert advice while navigating the sale process which will ultimately lead to a successful transaction.
No matter what your reason is for selling your vineyard, you want to have a successful outcome. It is a lengthy journey that’s filled with emotion and, at times, stress. But, if you follow the previously mentioned tips, you can reduce your stress and speed up the sale process. After you make the sale, you’ll be able to find relief in knowing you’ve sold to someone who is going to take care of the property. And, the best part of all is that you are free to pursue other dreams and goals that maybe you couldn’t when you owned the vineyard.
Your real estate agent is the best source of information about the local community and real estate topics. Call or Text Anne at (707) 245-6090 | Michael at (707) 849-5589 to learn more about local areas, discuss selling a house, or tour available homes for sale.