Farm buyers: who are they and what do we know about them?
As we enter the second half of 2019, the sentiment from farm and land buyers throughout the West Country is much more positive than we had anticipated. Andrew Dodds of Stags Farm Agency department discusses this further.
Having completed the sale of 10 farms and 39 land lots and agreed the sale of a further eight farms and 21 land lots so far in 2019, we at Stags Farm Agency have been working within a healthy market. Some farms were launched to the market earlier in the year than usual, matched by a good level of demand from different types of purchasers.
Despite perceived potential sort term uncertainty, buyers appear to be taking a longer-term view when considering whether to buy farms or land, especially when neighbouring acreage is available.
Who are they?
We have also seen an increase in activity from those searching to buy whole farms for lifestyle reasons; of the farms Stags has sold or agreed a sale on this year, the majority of buyers have been farmers.
Where are they?
50% of those buying a farm through Stags had been living in the same region of the South West as the farm they purchased, with 23% from London and the Home Counties and the remaining 22% from the wider southern counties of England.
How quickly do they proceed?
The average time taken between Stags first placing a farm on the market and the point at which a sale was agree is just over five months – the quickest being less than three weeks – while the average number of viewings we carried out at a farm before agreeing a sale was 13, with the maximum number being 37 and the lowest just one.
Are they viewing several farms before committing?
The average number of farms our buyers viewed through Stags before agreeing a purchase is six. Although this does not sound like very many, there are never a great number of farms for sale at any one time.
How are they funding their farm purchases?
44% of buyers required a mortgage or loan but had no property to sell, while 17% were linking their purchase to the sale of their existing property, 22% were cash buyers and 17% required a mortgage or loan and had a property to sell.
Andrew Dodds of Stags Farm Agency department commented, “We have found the activity levels and demand varies according to location, but that there is cautious optimism as we enter the second half of the year and launch another flurry of farms and land lots to the market.”
To discuss buying or selling farms and land throughout the West Country, contact Andrew Dodds or a member of Stags Farm Agency department today.