Dear Vinny,
With the new year already here, my family will be sitting down to discuss the future of our family ranch. My brother and I have our own families and careers far from the family ranch and have no plan to relocate. Mom and dad are getting older, and we worry about them on the property during the winter months. The ranch hands have shown interest in staying on and keeping the property working but can’t afford to buy it outright from the family.
The property has been in the family for 3 generations, and we know that are a lot of things to clean up, disclose, and consider. How do we start the conversation? What do we need to prepare for? Do you have other advice as we “sit down at the table” together? (We want to stay civil and enjoy the holidays, but this conversation needs to happen).
~3 Generations
Dear 3 Generations,
Selling a ranch that has been in the same family name for decades is always a difficult conversation and typically an emotional process. If no one is ready to continue carrying the torch and mom and dad are nearing retirement I would not wait to have the conversation. Simply put I would approach this conversation as more of an estate planning conversation then making anyone think they are getting kicked off the place they have most likely invested blood/sweat and tears into over the years. Selling a ranch can sometimes take years to prepare for depending on the size and how much work is going to need to be done. If the family can come to a consensus over the holidays that selling is the right move for a new chapter my recommendation would be to start interviewing brokers and find someone the family can get comfortable with. An experienced broker will have several recommendations on what can be done prior to selling that will typically make the sale faster and for a higher net. The wintertime is always a great time to have these discussions in hopes to have a firm plan of execution in place as spring nears. Best of luck with your conversation!
