How Much Does a Farmland Broker Charge? Top 50 Questions about Farmland
Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. How much does a farmland broker charge to sell your farm? Man, that's a loaded question. And, uh, there's all different types of services that go into that charge or the fees that are attached as a professional fee.
Uh, oftentimes I've seen farm sell anywhere from 0.5% all the way up to a flat fee, but all the way up to, uh, 15%, uh, depending on the farm, depending on the conditions. The marketing budget, the amount of advertising, the promotion, et cetera, et cetera. Some brokers include other fees, like the closing fees, like, um, updating the abstract or the title company fees.
Some people even pay your taxes or back taxes on the property. And, um, that's all inclusive in the price. Some folks pay the marketing budget, some pay for the facility, some pay for advertising as a separate budget. And then, uh, the closing fees as a separate budget. So, Oftentimes we charge somewhere between 1% and 10% depending on the value of the farm.
Let's pretend you have a 20 million farm. Probably gonna charge you less than if you have a $200,000 farm. Uh, it's the same amount of work that goes into each transaction, uh, a smaller deal or not. We wanna make sure that every client gets the same amount of service and marketing, uh, to promote their farm to the largest audience yielding you the most successful outcome.
David Whitaker | Iowa Land Guy