Yrene lives in Lumby British Columbia, Canada, and is the founder of BackcountryCanadaTravel.com. She was born in Switzerland, lived and worked on different continents and has travelled the world. Yes, that's me, an Entrepreneur, wilderness nut and animal lover. I write about things I love. Mostely.
The Truth about selling Rural Property in Canada
Many of us have sold rural properties, some of us more than once; others may still try to sell. How long did it take you to sign the deal? Has it been years and you’re still waiting for the right buyer?
Selling property out in the country is different from selling a house or condo in a city. Depending on the real estate market, the size of the place, the location and the price, selling could take years. You may be shocked to hear what I have to say.
The stress of selling rural property is underestimated. I would like to share with you what I learned in the process of selling rural properties in British Columbia, Canada. My own frustrations and watching neighbours trying to sell their rural properties for years inspired me to share my insight and personal tips to help any of you in the strenuous selling process. I wish I would have knows what I know now and it would have been a less nerve-wracking procedure.
Please note that I’m not a realtor and this article reflects my own opinion only. Every situation is special and the struggle of selling depends on many different factors and some good luck.
The biggest financial lifetime transactions for most people are buying and selling properties which both are major life decisions. For most, buying rural property is an exciting lifestyle change with plenty of opportunities ahead; having your own land and privacy can be heaven on earth. When we buy the piece of heaven we usually don’t think about resale, which is a big mistake. When the time comes and we decide to sell, we can be in for a long haul.
The first thing you probably do once you decide to sell your property is contacting a local realtor, agree on a listing price and commission and get it listed.
Once the property is listed on MLS (Multiple Listing Services) you’re hoping for showing requests and offers. If this is what’s happening and you’re showing your property to potential buyers, you’re most probably on the right track. If you’re not getting showing requests and no offers at all and the property is still for sale two years down the road, you may have a problem.
All realtors can access the MLS back data to check how long your property has been on the market and pass the information on to potential buyers. Once a listing gets stale, selling will become even harder, and you will be asked to drop the price.
In my opinion, for a realtor to have a listing for two years should be long enough to sell any property with the right marketing plan and the right listing price. The length of a listing contract is up to you and your realtor. To start off with, a one year contract seems to be necessary for a rural property, ranch or farm. This gives the realtor enough time to use all his resources and market the property well. Once two years are up and you’re still waiting for a buyer, it may be time for a change.
What you should know before listing your property
- You will need LOTS of time, patience and good nerves – to sell rural property can take many years; picking the right listing agent is vital.
- Do a serious market evaluation – don’t just rely on what the realtor tells you.
- Don’t choose a realtor because he suggests the highest listing price. If you do, you will be asked to lower the listing price a few months down the road if it doesn’t sell, and again a few months after that.
- The commission of some realtors charged in Canada may sound outrages but how badly do you want to sell?
- Rural properties and acreages are a specialized market and need a special marketing strategy.
- Decluttering before you put the property on the market is a good idea.
- Clean up the property and Repair and fix important stuff. An attractive property will sell for more than a run down one.
Selling your own property without a Realtor
Anyone can learn to sell their property privately. From legal steps to marketing techniques, all the necessary skills can be found online. However, depending on the type of property you have for sale and the time you have available for the job, it could be a nerve-racking process to actually follow through. The realtors in the area most probably won’t show your property if someone is interested and you will be on your own.
Selling properly on your own in a higher price range is not easy. The higher the price, the less potential buyers are out there. Have a go at it if you like, but don’t waste too much time only to hand it over to a realtor in the end. Selling rural property is nothing like selling a place in town. If you just want to sell it yourself to save on the commission, I would not go this route.
Check out one of the popular online real estate services like propertyguys.com, Canada’s largest private sale franchise network if you don’t want to get a Real Estate agent involved.
Hiring a Realtor
If you decide to list your property with a Real Estate Agent, make sure to choose the most professional in the field. Let’s face it, it’s not extremely difficult to become a licensed realtor in Canada, and therefore it’s a part-time business for many. In Canada, we have an abundance of realtors not only in the cities but also in every small town.
What you want for your listing agent is the full-time professional with years of experience, someone well known in the field, specializing in the kind of property you have for sale, someone with a large customer base. It makes sense to me that you should trust the maybe largest investment of your life only to a professional full-time real estate agent. Agreed?
Don’t choose a city realtor who sells mostly luxury houses and condos if you try to sell your rural property, farm or ranch.
Don’t try to save money and decide on a realtor because of his low commission. An agent that offers a low commission fee may not be able to provide the same services and exposure that an agency with a higher rate may be able to provide. Of course, there is a chance that your place will sell while listed with a low commission agent and you save lots of money, but it’s rather unlikely.
Why is that?
Once your property sells, the real estate commission gets split between the listing agent and the selling agent. Realtors are more inclined to show your property to clients knowing that they can earn a high commission if they sell it. This means that you will get more showings on your property from realtors out of town.
What to look for in a Realtor
- Fulltime, professional
- Knows the market and the type of property you want to sell
- Experience is the name of the game
- Check out profile and history before you choose
- Offers an excellent marketing plan
- Location of the listing realtor is not important
Some realtors are better at writing an attractive summary of your property than others. You are the one who knows your property best. Give input and suggestions, tell your story. Check the listing once it’s online to make sure the information is correct.
Most times I supplied my own pictures for the listings. Some realtors send professional photographers to take pictures, others snap their own photos when they inspect the place. Whatever the situation, make sure the pictures are of good quality and showing off the property well.
How to agree on the sale price
If you want to get an idea of how much your property is worth, you can ask different real estate agents for a free market evaluation. By comparing similar properties you and your agent can work out a potential value for your home. The only way to truly know the value of your home is to get it appraised by a professional, which is usually not free. Read more in this article.
In the end, your property will sell for exactly what it’s worth, or at least what it’s worth to the buyer.
People seem to spend lots of money on renovations just before they list a property. Just remember that your renovations may not add much value to the price. If your property is priced too high, there will be no interested buyers or you will get low offers. In this case, you will have to adjust the price if you’re serious about selling.
Showing your property
The moment your property is on the market and it’s listed and advertised online, you will have to open your house to strangers and you have to say goodbye to your privacy. This can get extremely frustrating as time goes on. The ideal situation is to sell fast! Unfortunately, this is not how it usually works with large, rural properties for sale.
Get used to strangers walking through your house, opening up cupboards, pulling out extension cords, checking out your refrigerator, turning on showers, snooping behind your bed. Your personal items and your life are constantly exposed to strangers and their critics. And, some of the people walking through your house can be extremely rude.
Preparing for showings becomes to be a fulltime job. The most important thing is that the house is clean without too much clutter lying around. Make a fire if you have a wood burning stove to create a special, cosy atmosphere. Turn on lights before the potential buyers show up, move your pets outside if you can. A few touches help in making the place more inviting. After a dozen showings, you will know what to do and it will get routine.
Suck it up! You never know when your perfect buyer will walk through the door.
A good realtor will give you feedback after a showing. That’s the least they can do to help with our frustrations.
An interested buyer will probably want to see your property for the second time, which is a good sign, but far from the guarantee of an offer. And then there are the potential buyers who want to walk the property with you. In case of recreational property, this makes sense and shows interest. I would want to do the same if I would be the buyer.
Once you get an offer to purchase
If you finally got an offer on your property, don’t start packing yet! Not every offer goes through and actually becomes a sale. Carefully read the contract of purchase and sale, read every word of it and don’t take it personally if the offer is low. The contract will include terms and conditions (also called subjects), you and the buyer have to satisfy, as well as the completion and possession dates. Whatever is in the contract you can change and counteroffer. Consult with your realtor and decide how to deal with the offer. You do not have to accept the offer even if it is for the full asking price.
Once you and the buyer agree on an offer and sign the contract of purchase and sale, there will be a set period for subject removal. The most common subjects are:
- buyer obtaining satisfactory financing
- buyer receiving and approving a current property disclosure statement
- buyer obtaining and approving an inspection report
- buyer receiving and approving a title search
- buyer obtaining approval for fire/property insurance coverage
- buyer having water quality and quantity checked
- seller having the septic system pumped
The subject removal period is stressful, not knowing whether you should start packing or not. During this time continue with decluttering; you will be surprised how good it feels.
When the offer falls through
There it is, the dreaded email from your realtor, a couple of days before the subject removal date, telling you that the offer didn’t go through. It’s not a good feeling. That’s the time when you start asking yourself:
- What is wrong with my property? (Nothing, the banks make it difficult and the right buyer will come).
- Is the price too high? (No it isn’t, otherwise, I would get no offers or low offers).
- Is the house too old? (The buyer knew the age of my house; if the house would be newer, the price would be higher).
- Is my property too far out of town? (That’s what makes it special, the privacy and surroundings).
If you are getting showing requests and offers, even if they don’t go through, it’s a good sign and it’s not the time to change realtors. On the other hand, if nothing happens and your frustration grows by the day, that’s the time to look at other selling options. The solution, in this case, is not just to change to another realtor in town; most probably this will not get you anywhere. You’re better off looking further away. Find an agent that specializes in your kind of property and has a wider customer base and promotes in other provinces and overseas. If something doesn’t work, we have to try something different.
Changing realtors is a big decision and should not be taken lightly, especially if you’re selling in a small town. Cancelling a listing with a real estate agent often causes hurt feelings. The seller’s only goal is to sell the property, so it is in their interest to do whatever it takes and realtors shouldn’t take it personally to lose a listing.
Some realtors tell you that MSL is the most important place for advertising a property, but I don’t agree. Action on my ranch for sale started after the listing was taken off MLS and a different marketing strategy was used. MLS is only one tool of many. Not every buyer uses MLS to find a property. Buyers who don’t know the area will most probably contact a reputable agent that sells the kind of property they’re looking for.
Don’t pressure your realtor to advertise in magazines or newspapers; it’s a waste of effort and money. Rather look into other options.
In my case, many inquiries regarding my ranch for sale came directly through backcountrycanadatravel.com and through my Facebook page. Don’t underestimate social media channels if you have a rural property, a farm or ranch for sale in Canada.
Top tips on selling rural property in Canada
- List your rural property early; it could take years to sell.
- Take your time to choose a real estate agent that will expose to different markets.
- Talk to prospective Realtors about how they will market your property – in the window and on the website isn’t good enough.
- If your rural property for sale is an equestrian, ranch, hobby farm, guest ranch, farmland etc, consider specialized promotion.
- Be patient, stay positive and never give up, the right buyer will come.
- Start decluttering early and decide what you want to keep when you move.
- Whatever you do, listen to your guts.
If you have additional tips on selling rural properties, please leave a comment below.
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