Top 10 tips for selling farm equipment and real estate

You have farm equipment or real estate to sell, and, like most business owners, you want top dollar for your assets. Considering most agriculture equipment demands a significant outlay of cash to purchase initially and to maintain indefinitely, who wouldn’t? So, it only seems reasonable to want to recoup a fair amount of your investment when it comes time to sell, especially if retirement is in your near future.

Whether you are selling one tractor or a fleet of farm equipment, take some advice from us. We’ve been selling all kinds of equipment at our unreserved auctions since the late 1950s and now sell billions of equipment and trucks each year through multiple transaction solutions.

We know farm equipment, we know the agriculture industry, and we know what it takes to strike the best deal. Take a look at our top 10 list of tips for selling farming equipment.

1. Know what your equipment is worth

Do your homework and research equipment pricing and industry trends for comparable equipment. Use the most current information you can find and establish a price range for your equipment. Having a price range will help you negotiate confidently and set realistic price expectations. We can help you get the industry’s best used equipment pricing data. Talk to our representative to learn the value of your equipment. They have the resources and tools to get you the true market value.

2. Research selling methods

No matter your situation, the type of equipment you are selling, its condition and how quickly you need to complete the sale, there is a selling method best fit for your equipment and situation. To know what selling method would work best for you, educate yourself on the pros and cons of common equipment selling methods, including unreserved auctions, online marketplaces, private sales on our listing service, equipment dealers and equipment brokers.

3. Go to a pro

As tempting as it may be to go it alone, consider the amount of time and effort you will need to put into the selling process – and the number of potential buyers you can reach without the help of an expert in sales and marketing. You can save a lot of time and money with a full-service solution, especially if you’re selling a lot of items, don’t have a dedicated asset manager or work in a region with high supply/low demand for used equipment. Talk to an experienced salesperson about developing a selling strategy designed to get you the best return on your investment.

4. Show the value of your equipment

The way your equipment looks can either deter buyers or attract higher offers. Before you sell, consider cleaning, washing, glasswork, upholstery repair, and other enhancements to present your assets in their best light, small investment that nets big returns.

5. Target buyers wisely

Try to target the most equipment buyers you can, but don’t sacrifice quality for quantity. Work with an equipment seller that not only actively markets to a large population of equipment buyers, but targets its marketing efforts based on the right industry for your equipment and the region in which there is the most demand. Marketing your equipment can be the most time consuming and costly step in the sale process, so make sure you choose an equipment seller with proven marketing expertise (like Ritchie Bros.!).

6. Be transparent

Provide detailed photos and information about your equipment. Include photos documenting the condition of the machine, engine, cab interior, etc. Remember: buyers appreciate convenient online access to equipment information. Still, some buyers are weary of purchasing equipment they are unable to view and test first hand. If you are using a selling agent or auction company, choose one that publishes detailed equipment information online, accommodates on-site inspections, and provides certified inspection reports.

7. Screen buyers

When you receive an agreeable offer, the last thing you want is for the deal to fall through. Screen potential buyers before you accept an offer or work with a selling agent who verifies the legitimacy of potential buyers on your behalf. At Ritchie Bros., we qualify potential buyers before the auction to prevent deals falling through and ensure that sellers get paid. To help buyers close the deal, Ritchie Bros. also offers affordable equipment financing.

8. Prepare for a post-sale reality

For those who are considering retirement and a full dispersal, your journey does not end at the sale of your farm and assets. Ritchie Bros. has partnered with MNP  to offer comprehensive support to ensure a successful transition, helping you navigate the post sales landscape. This includes discovery & identifying your options, clarifying and presenting an action plan, and implementing next steps.

9. Minimize uncertainty

When you sell your farming equipment, don’t want to wait too long for payment, especially if you are planning on replacing your sold equipment with a newer model. The equipment market can change from week to week. Prices can go down and supply can go up. If you want cash in hand quickly, so you are ready to act on a good deal and minimize disruption to your operations, choose a selling method that offers certainty of sale. Knowing the exact date of sale for your equipment takes some of the guesswork out of the equipment selling equation.

10. Establish a relationship for future deals

If you have a fleet that you will be turning over every 3-5 years, or foresee the need to upgrade equipment in 5-10 years, find a sales rep you can trust. The more you work together, the better your representative will understand your particular farming business and be able to get you the best results.

Bonus Tip: Selling farmland? Find an expert who understands the market

If you plan on selling farmland or real estate, you’ll want to work with a team that understands the needs of farmers. Ritchie Bros. has a dedicated Real Estate division with decades of expertise and experience – along with unparalleled marketing and the ability to reach buyers across the country and around the world – to maximize your returns.  

Contact us to learn more about how to sell farming equipment and real estate at Ritchie Bros.

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See also

Buyers spring into action at big agriculture sale in Central US