I think I know what my farm is worth and I know a guy that might buy it. Isn't that all a broker does? The poultry brokerage business is complicated enough that if you don't sell farms every day you can make small mistakes in the process and leave over $200,000 on the negotiating table. However, we have seen farmers do a great job negotiating only to pay over $400,000 in taxes due to depreciation if you don't know how to get around paying it on your farm transaction.
In general, a Poultry Farm Broker is paid a percentage of the sales price to keep you from making mistakes that can add up to hundreds of thousands of dollars on an average transaction. You many not need a Poultry Farm Broker if you feel comfortable with the following top 10 questions:
At what price will my farm cash-flow and what capitalization rate do lenders use in valuation, getting me full value on my farm?
How much earnest money do I collect from a buyer and what laws are associated with being able to legally keep it?
Am I comfortable negotiating a multi-million dollar transaction?
Is my buyer really qualified and what happens if he voids the contract after I have paid all the closing costs?
What upgrades are required and who typically pays for them?
Should I sell my residence or equipment under a different contract and how does this effect my taxes and basis?
What do I do to enforce my contract during contingency removals?
What time of year should I sell my farm to receive the most money?
How do I avoid paying taxes on the sale of my farm?
How long should I own my farm before selling it to make the highest return possible?
Working without a broker is the same as representing yourself in court without an attorney. You can do it successfully if you have the experience.
Or as my mother would say, "practice makes progress." At American Poultry, we work almost exclusively by referrals from previous clients. By providing value far exceeding our cost, we earn your business everyday.
