{"id":11599,"date":"2024-02-15T21:29:30","date_gmt":"2024-02-15T21:29:30","guid":{"rendered":"https:\/\/www.swanlandco.com\/?p=11599"},"modified":"2024-02-15T23:08:56","modified_gmt":"2024-02-15T23:08:56","slug":"how-to-sell-your-ranch-in-montana-like-a-pro-the-ultimate-guide","status":"publish","type":"post","link":"https:\/\/www.swanlandco.com\/2024\/02\/15\/how-to-sell-your-ranch-in-montana-like-a-pro-the-ultimate-guide\/","title":{"rendered":"How to Sell Your Ranch in Montana Like a Pro: The Ultimate Guide"},"content":{"rendered":"

Many landowners considering selling a Montana ranch encounter a wall of industry mystery when trying to make an informed decision about their property. Ranch and farmland real estate is more similar to selling a business than to selling an urban home. The transaction involves intricate legal, tax, and structural nuances, as well as operational considerations.<\/span><\/p>\n

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\u00a0For many landowners, there are also complicated emotional ties and conversations surrounding family and the lifestyle changes that a sale represents. After countless discussions with landowners throughout my career, there are key insights and information about real estate industry mechanics that I believe every property owner contemplating a sale should know.<\/span><\/p>\n

First, let me provide some context about where I’ve gained these insights. My name is Mike Swan<\/a>, and I’m the managing Broker\/Owner at Swan Land Company. I grew up in Southwest Montana, working on a sizable commercial cow-calf operation along the banks of the Jefferson River. This lifestyle shaped my sense of community and ingrained a deep-rooted sense of duty to give back. Buying and selling land in the American West is a seismic shift in the lives of both the seller and the buyer. I experienced this firsthand when my parents decided to retire and sell our family ranch. Going through that process provided me with insight into the emotional and logistical complexities involved in this life-altering change.\u00a0<\/span><\/p>\n

Since 2002, I’ve been working in real estate and have had the honor of handling large, complex, and multi-faceted transactions, such as the Broken O Ranch<\/a> near Augusta and the Climbing Arrow Ranch<\/a> (CA Ranch) in the Gallatin Valley\u2014two of the largest transactions in the history of the West. I also regularly teach as a faculty keynote speaker<\/a> for The Seminar Group<\/a>, an organization that provides professional development seminars and conferences for professionals across industries as well as at Montana State University<\/a> to the Dan Scott Ranch Management class.<\/span><\/p>\n

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Climbing Arrow Ranch in Manhattan, Montana | Listed & Sold by Swan Land Company<\/figcaption><\/figure>\n

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Preparing to Sell<\/h2>\n

Taxes, Corporate Structure & Financial Planning<\/b><\/h3>\n

One of the most important conversations we have with families in our offices plays out like this \u2014 They have been contemplating selling for a significant amount of time and have reached a point where they are ready. They are in the process of interviewing brokers with the goal of signing a listing agreement. As we delve into the details, we quickly realize that to maximize their net in-pocket money from the sale and avoid triggering unnecessarily large tax bills, we need to pump the brakes.<\/span><\/p>\n

Instead of proceeding with the listing, the next step becomes connecting them with a qualified tax advisor, accountant, and attorney. Ensuring that we’ve examined every possible aspect to minimize the tax impact. This often involves optimizing the corporate structure and engaging in proper gifting. Depending on the complexity, this process can sometimes take as long as a year or two.<\/span><\/p>\n

If there’s one piece of advice I would give any landowner in Montana, it’s to initiate conversations with a few brokerages early on. Even if selling is just one of several options you’re weighing, it’s worth getting all the information you can. A good brokerage will have a network of qualified professionals they can refer you to. They can also provide valuable professional insights on tax recommendations that may have property value implications, such as conservation easements, gifting, and other estate planning tools. Ensure that the brokerages you reach out to are like Swan Land Company and specialize in ranch real estate.\u00a0\u00a0<\/span><\/p>\n

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Mike Swan & Tim Anderson in Geyser, Montana<\/figcaption><\/figure>\n

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Navigating Stake Holders & Setting Goals<\/b><\/h3>\n

Selling can mean a lot of different things to different landowners. Different goals have differing tax and process implications. For example, a 1031 Tax Deferred Exchange<\/a> may be an important part of the planning process. Clearly articulating your goals and concerns, both financial and emotional, can provide critical groundwork to make sure the process is as smooth and satisfying as possible.<\/span><\/p>\n

Key Points to Consider:<\/h5>\n
Goals:<\/h6>\n

What do you want life to look like after the sale of your property?\u00a0 Do these goals raise any considerations that should be taken into account in the transaction?<\/span><\/p>\n

Stakeholders:<\/h6>\n

It is crucial to have a clearly articulated and discussed plan for the financial stakeholders in your property. While it may be clear-cut for some, in cases with family complexities, addressing all stakeholders’ concerns and wants adequately will significantly reduce friction later on.\u00a0 We prefer to have all of the stakeholders involved in the process from the beginning to ensure there are no surprises that may derail the sale later on.<\/span><\/p>\n

Assets:<\/h6>\n

Determine what you want to take with you and what you want to sell with the ranch or property. Common assets often discussed in this category include cattle, equipment, vehicles, livestock panels, chutes, and other personal property.<\/span><\/p>\n

Timeline:<\/h6>\n

While some of this is going to be at the mercy of the markets or your personal needs. There is some planning and industry knowledge that can help when discussing timelines and setting expectations.<\/span><\/p>\n