The Montana brand goes way beyond the television show Yellowstone. The state is famous for its cattle and sheep herds, honey, potatoes, malt barley used in brewing and spectacular outdoor recreation.
With more than $8 billion worth of Sell Montana Land Now ranch land, rural property and hunting land listed for sale, the market continues to be dominated by cash buyers. According to Montana Land Source, a real estate brokerage firm, high-net-worth cash investors continue to prioritize ranches in their portfolio because they don’t react to volatile markets and are viewed as a safe-harbor investment.
A number of these buyers are from out-of-state, and it can make it difficult for young farmers to compete with their cash offers. In fact, one Eastern Montana broker recently told The Center Square that she had a buyer who wanted to buy her entire ranch, which is 113,000 deeded acres with 226,000 leased public land acres, for $200 million.
The sale would be the biggest agricultural land deal in Montana history. It’s a sign that even as interest rates rise, buyers are still willing to pay premium prices for Montana ranch property. But it’s also a reminder that the market is not without risks, as high interest rates may dampen future sales activity, and sellers should be prepared to adjust their pricing accordingly.
There are a few ways to sell your Montana property, but each has its pros and cons. Selling to a “we buy land Montana” company, for instance, can get you a faster close because there’s no need to wait for bank approval and there are fewer inspections and appraisals. On the downside, however, you won’t be able to fetch a full retail price.
Another option is to work with a real estate agent who specializes in land. They can help you prepare a list of what you need and want in a ranch, and then search for properties that meet those requirements. They can also negotiate on your behalf, which could save you time and money.
One final consideration is to use a 1031 exchange to sell your Montana ranch and use the proceeds to purchase a larger ranch in another state. Devries said he’s seen producers do this and it can help them expand more efficiently and secure their legacy as ranchers.
Before you decide to sell your Montana land, think about what’s important to you and your family. And remember that a fair cash offer is likely your best bet to get the most value out of your property. Whether you’re selling to a cash buyer or using the proceeds from your Montana land sale to buy another property, you can find the right fit for your lifestyle with the assistance of the professionals at a trusted real estate company.