Partners within the Group consult on well over 50,000 acres of agricultural and commercial property every year in both Alberta and Saskatchewan.
We can assist with the valuation of property for use in estate planning, title transfer, or in preparation for sale.
Our written opinion of value is based on the sales of comparable properties in the same district or municipality using price per title acre, price per cultivated acre, price per pasture acre, and assessment to sale price ratios.
Yardsite and improvements are separately analyzed.
We always view the site in person as each parcel has distinct characteristics.
Our report includes current copies of the land titles, associated parcel maps, property profiles used by the Rural Municipality / County / Municipal District, and satellite imagery.
We will also consider if an alternative use of the property may increase its potential value, such as subdividing a yardsite or rezoning.
Our valuation letters are extensively used by lawyers and accountants to assist them in giving timely advice to their clients.
However, they are not intended to be used in lieu of services performed by an authorized appraiser and may not be appropriate for applications for financing with some lenders. If so, we will be happy to refer you to the appropriate professional.
If you wish to take the land to the open market, we will make a recommendation as to the most appropriate strategy.
Our highly successful Progressive Tender system lets the market speak to the Seller, while they retain the right to decide if the price meets their expectations, or sometimes, who they choose to sell to.
Buyers love the format as it gives them the opportunity to increase their bids and compete for the property, not in minutes as in auction but through daily progression rounds.
Using this method, in less than 100 days the owner’s equity in land can be turned into cash.
Depending on the attributes of the property, an alternative is the Multiple Listing Service, where the Seller states their asking price, then waits for a prospective buyer to make an offer.
We provide private brokerage services in cases where the Seller and Buyer wants an independent party to facilitate negotiations.
Often, a landlord or tenant will ask us to act as a “go between” in developing a purchase contract at a sale price both can support.
Sometimes, buyers will contract with our Group to source properties in particular location or with specific attributes.
We also help business owners quietly evaluate market value for their enterprise and explore the potential for sale out of sight of their clientele or employees.
The Progressive Tender system also works for the development of leases, sale of major assets, or the procurement of goods and services.
We assist landowners with the development of three-to-five-year leases, using either our professionally prepared template, or working closely with their own legal counsel.
Major assets can be marketed to a global audience. We work closely with highly respected western Canadian law firm, MLT Aikins, to ensure the interests of both the sellers and buyers are protected in any transaction.
This approach strives to improve the tender experience for both Sellers and Buyers.
It allows prospective buyers to know the amount of top bid submitted in each round (bidder names remain confidential and only disclosed to the Seller when all bids are declared final), with the chance to counterbid, not in minutes as with auction, but having time to consult with family and lenders.
Buyers appreciate the transparency of the process, as opposed the “blind” offer system in the standard tender. Those who are participating in a tender for the first time will see what their peers believe the property to be worth and can compare it to their own research.
Sellers like the fact they are receiving the highest market price that can be achieved at that point in time, but still retain the option of accepting or rejecting the final bid, or to choose who they will sell the land to.
The highest bid is disclosed in each round but not names. Bidders are asked by the broker if they wish to improve their offer and given a set time to do so, usually noon of the following day.
If a bidder does not respond within the time limit established by the broker or submit a minimal 2% increase over the highest offer of the previous round, their last bid will be registered as their Final Offer. "Matching" bids are not allowed.
Once all bidders have declared their Final Offer, the broker presents the names and bidding history to the Seller. The Seller decides which, if any, of the bids they wish to accept.
Should there be a holder of a Right of First Refusal, the pre-set time allowance for response by that party is triggered.
A Contract of Purchase and Sale is executed with both Buyer and Seller by the broker, then conveyed to each party’s legal counsel.
Tender Marketing Program
Our four to six week advertising campaign directs prospective bidders to a customized website specific to the tender.
Website elements:
· Handheld screen friendly. In other words, details can be read off a smartphone or other mobile device such as an iPad.
· Domain name purchased specific to the campaign e.g., “Smithlandtender.ca”
· Rules governing the tender including any Right of First Refusal clearly spelled out.
· RM or County map showing location. Satellite imagery and parcel map(s) associated with land title(s) when available.
· Seasonally appropriate photos of the property, including drone footage, is supplied when available.
§ Three-year crop history.
§ Current property tax amounts.
§ Property detail reports from the municipality or province.
§ If there is a house or commercial building on site, an inspection report is recommended.
§ Bid Document for submission with deposit.
§ Draft purchase agreement.
§ Contact information for further inquiries.
· Mail drop to all farm boxholders in the catchment area (recommended to be postal codes in a 20-mile radius for grain land and a 120-mile radius for pasture).
· Weekly sponsored ads to Facebook subscribers in same target areas.
· Print advertising in both local newspaper(s) and the Western Producer
· Details are also emailed to our subscription list of prospective and qualified buyers. In the past two years, approximately half of the successful bidders came off this list!
· Custom signage on site.
Sealed bids are to be submitted by a specific deadline to the Brokerage office along with a predetermined deposit amount or a percentage of the offer, whichever the Seller requires.
This “earnest money” becomes non-refundable once a bid is accepted.
Offers are expected to be cash with no conditions. Closing date is usually pre-determined by the Seller unless otherwise agreed.
A formal purchase agreement is entered into by both parties, then submitted to their respective lawyers for conveyancing. Both parties are responsible for their legal costs.
Unsuccessful bidders are advised in a timely manner by the brokerage.
