Yes, you can often sell farmland and keep the house by separating the home and surrounding acreage from the agricultural land. In Iowa, this may involve creating a new parcel around the house before the farmland is sold. However, access, zoning, septic systems, wells, utilities, surveys, and local subdivision rules should all be reviewed before deciding where to draw the new property lines.
For many Iowa farm owners, selling the land does not necessarily mean selling the place they call home.
A family may own 80, 160, 320, or more acres but still want to live in the farmhouse. In other cases, the family may want to keep the house, buildings, or a few acres while selling the productive farmland.
That can often be done. The important part is planning the division before the farm goes on the market.
How Can I Sell the Farm but Keep My House?
The basic idea is to separate the house and an appropriate amount of surrounding land from the farmland being sold.
For example, imagine you own 160 acres in Iowa with a farmhouse and buildings near the road. Instead of selling all 160 acres, you might retain the house and several surrounding acres while selling the remaining farmland.
The exact acreage you keep will depend on the property.
Before establishing the boundaries, consider:
- Driveway and road access
- Well location
- Septic system and drain field
- Utility lines
- Outbuildings
- Grain bins
- Livestock facilities
- Trees and windbreaks
- Drainage
- Property setbacks
- Easements
- Local zoning and subdivision requirements
The goal is to create two functional properties: a usable homesite and marketable farmland.
How Many Acres Should I Keep With the House?
There is no standard number of acres that should be kept with an Iowa farmhouse.
One property might work well with a few acres around the house. Another may need considerably more because of buildings, septic systems, wells, driveway placement, topography, or the way the farm is laid out.
Think about how you will use the property after the farmland is sold.
Do you need room for a large yard? Do you want to keep a machine shed? Are there livestock buildings you still plan to use? Do you want a pasture, garden, or additional privacy?
At the same time, every acre removed from the farmland tract changes what the buyer is purchasing.
The boundary should make sense for both properties.
Do I Need a Survey to Separate the House From the Farmland?
A survey may be needed to establish the boundaries of the property you are retaining.
If the house is not already located on a separate legal parcel, creating a new parcel may involve a survey, legal description, county approval, or other steps.
Requirements can vary by county and by property.
That is one reason this decision should be made early. Waiting until after a purchase agreement is signed can create unnecessary complications.
Before marketing the farm, determine exactly what is included in the sale and what is not.
What Should I Check Before Separating a Farmhouse?
Several details can become important when a house and farmland that have historically been part of the same property are separated.
1. Access
Both properties need appropriate access.
If the farmhouse uses a driveway that crosses the farmland being sold, you may need to address access rights or an easement.
The same issue can occur in reverse. A farm buyer may need to cross the retained acreage to reach a field.
Access should be clear before the sale.
2. Well and Water
Determine where the home’s water comes from and where the well is located.
You do not want to sell the farmland and later discover that an important part of the home’s water system is located on the property that was sold.
If there is a shared well or another unusual arrangement, that should also be addressed.
3. Septic System
The septic tank and drain field should be considered when establishing the new boundaries.
Leaving enough land around the house for the existing system and potential future needs can be important.
4. Utilities
Check the location of electric, gas, water, telephone, and other utility lines.
If utilities cross the property being sold, existing easements and future access may need to be reviewed.
5. Buildings
Decide which buildings stay with the house.
A farmhouse may sit near a garage, machine shed, grain bins, livestock buildings, or older farm structures.
Do not assume they all need to stay together.
Some buildings may add value to the homesite, while others may be more useful to the farmland buyer.
Should I Keep the Farm Buildings With the House?
It depends on the buildings and how you plan to use them.
A garage, small shop, or storage building may make sense with the house. Grain bins, large machine sheds, or livestock facilities may have more value to an agricultural buyer.
Consider the location of each building as well.
If keeping one machine shed requires carving an unusual boundary deep into an otherwise efficient field, you should evaluate whether keeping that building is worth changing the farmland tract.
The best division usually creates logical boundaries rather than simply keeping every improvement around the farmhouse.
Will Keeping the House Affect the Value of the Farmland?
It can.
Removing a homesite changes the acreage, boundaries, improvements, and possibly the access of the property being sold.
However, that does not automatically mean keeping the house is a poor decision.
In some cases, separating a farmhouse from the agricultural acres can make the farmland offering easier for agricultural buyers to evaluate. A farmer who primarily wants productive acres may not place the same value on a house as someone looking for a rural residence.
The effect depends on the individual property and buyer pool.
What If the House Is in the Middle of the Farm?
This situation can require more planning.
A farmhouse located along a public road is generally easier to separate than one surrounded by farmland.
If the home sits farther inside the property, you may need to consider driveway access, easements, snow removal, utilities, and how the retained parcel affects field efficiency.
An awkward homesite boundary could also divide a field or create additional turns for farm equipment.
Before deciding where to draw the line, look at how both properties will function after the sale.
Can I Keep the House and Some Outbuildings?
Yes, potentially.
A landowner may choose to retain a farmhouse along with a garage, shop, barn, machine shed, or other improvements.
Again, the exact division should be based on the property.
Make a list of everything you want to retain before the survey or marketing process begins. Then determine whether those improvements can be included in a practical homesite parcel without unnecessarily affecting the agricultural land.
Can I Sell the House Separately From the Farmland?
Yes. Another option may be to sell the house and farmland separately.
For example, a property could potentially be offered as:
- Farmland only
- House and acreage
- Multiple farmland tracts
- The entire property
How the property is offered depends on its layout, local requirements, and buyer demand.
In some situations, separating the improvements and agricultural land can allow different groups of buyers to compete for the portions they value most.
Should I Auction or List the Farmland After Separating the House?
Either method may work.
An auction can be effective when there are several likely farmland buyers and the seller wants a defined sale process.
A traditional listing may provide additional flexibility and time to find a buyer.
A sealed-bid sale provides another option by allowing interested buyers to submit confidential bids before a deadline.
Keeping the house does not automatically determine how the remaining farmland should be sold.
The sales method should be based on the farmland itself, the likely buyer pool, local demand, and your goals.
Can I Keep the House If the Farm Has Been in My Family for Generations?
Potentially, and this can be an important consideration for families deciding what to do with inherited or longtime family farmland.
Selling the productive acres while retaining the farmhouse can allow a family to unlock some of the value of the land without necessarily giving up the family homesite.
Other families may decide to keep the house, buildings, grove, or another portion of the property that has personal significance.
Those decisions should be made before establishing the sale boundaries.
What Should I Do Before Selling the Farmland?
If you want to sell farmland but keep the house, start planning before advertising the property.
First, identify exactly what you want to retain.
Next, review the proposed boundaries with the appropriate professionals. Depending on the property, that may include a land surveyor, attorney, county zoning officials, tax professional, lender, or real estate broker.
Then evaluate how the proposed division affects the farmland.
A few feet or acres can sometimes make a meaningful difference in access, field configuration, drainage, or the usefulness of a tract.
Can I Sell Farmland and Keep the House in Iowa?
Yes. Many Iowa landowners may be able to sell their farmland while retaining the farmhouse and surrounding acreage. The key is creating a practical division that provides appropriate access and utilities while complying with applicable local requirements.
Do not wait until the farm is already under contract to start thinking about the house.
Determine what you want to keep. Check the access, well, septic system, utilities, buildings, and boundaries. Then determine what approvals or survey work may be required.
Once the retained homesite is clearly defined, you can build the farmland sales strategy around the acres that will actually be sold.
Thinking About Selling Iowa Farmland but Keeping the House?
At Whitaker Marketing Group, we work with Iowa landowners to evaluate how a farm can be offered for sale, including situations where an owner wants to retain the farmhouse, buildings, or a portion of the acreage.
Every property is different. The best approach starts with understanding the farm, the seller’s goals, and how potential buyers are likely to view the property.
You may not have to choose between keeping your home and selling your farmland. With proper planning, the two can often be separated.
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