Buying our first farm update.

A while back I posted that we were looking into buying my better half's family farm owned by her grandmother. Its 80 acres with 50 or so being tillable and 30 woods. It is pretty fertile ground next to a decent size creek. Her father who is the power of attorney for grandmother and in charge of the estate told us 2 weeks ago that we needed to get our finances lined up and he would tell his brothers and sisters. But as long as we could get the deal done it was a go. Well long story short. We were able to get the financing through my brother who does real estate and land deals. We went to FIL house yesterday and explained that we had the cash to buy it..We offered to pay 40k more than what they were offered 6 years ago. His tune changed a little bit when we said we had cash to go ahead and buy it. He then told us to give him a week to call all his brothers and sisters (8) none of them have anything to do with the farm or coming around the place. We are hoping it goes through but I am skeptical now. He made it sound like a sure thing and if we got the money it was a done deal. On one hand I think the family would want to keep it within their family. However like I said no one has anything to do with it besides her dad. I'm afraid they will say no and take their chance at an auction. Does anyone have any advice on this? I guess at this point it is a waiting game and just sees how it plays out. I will be pretty let down if the deal doesn't go through...

I learned the hard way on our family farm. My dad said he would work with me and then sold it. I learned later that my aunt did notwant to sell out side the family. If it was me if it does not come back in your favor call the aunts and uncles yourself and explain it. What have you got to loose. Communication works

You do have an uphill battle because there are siblings involved. I would bet they will demand an auction, regardless if you pay fair market. Land is ridiculously high here, and all estates are going to auction.

Be sure to tell them that they will save the auction fees. Could amount to a good chunk of change.

Had a friend that happen to, Wanted to buy the family farm, Gave them his offer, They said no!! We can get more for it at auction!! So they sold it at auction. My friend brough it for less money than he had offered to them the 1st time.

FIL was talking out his ask
wait for the auction
keep saving money and do what you can to improve your financing postition
just a waiting game now
Good luck
Ron

Remind them that they have a 'hot buyer' with cash,they will save the auction commision.Around here,all fees,advertizeing,etc is pd for the seller,in addition to the commision.Same goes with a real estate broker.I have never seen where an auctioned property will bring as much money as the asking price....You were very generous with your offer.If the 'family' were smart,they would"take your money and run".

Let him keep it. Keep your finances in order and show up at the auction. It will probably be there loss.
I offered my brother 50,000 cash for a couple acres that hooked up to my place before things went to heck a few years back. He ended up selling it on a land contract for 25,000 a few years later. That was to my son so I still have the use of the land and don't have to worry about some idiot building on it.

Not much you can do try what the others said call them etc. If auction try that. WATCH OUT FOR THE WE GOT ANOTHER INTERESTED PARTY AND THEY DO A PRIVATE AUCTION.

Don't know what to tell you. I'm hoping that it all works out for you but don't have a war fuzzy feeling about it. I've seen this happen way too often. Sounds to me like her dad thought he was going to get the place because of him being in charge. He isn't ready to sell before grand ma passes. Call the others and tell them that you have the money to buy and would like to keep it in the family. Friend on mine lost out on that kind of deal except hi grand ma would have just given him the farm. An aunt told him she had talked to the others who stood to inherit and he couldn't farm there. He never bothered to follow up. Couple of years ago his mom told how dissapointed his grand mother had been when he left the farm. He ask his mom well then why to you say you didn't want me farming it. That the aunt said they all agreed he should farm it. His mom said she never discussed it with the aunt and that he had been lied too. So now is the time to start burning up the phone lines.

Th wife's 6 cousins were the worst. The inherited 160 acres, most of it tillable. A couple wanted to keep it in the family and the rest wanted the money. Their dad offered to buy it for a little over market value. They refused. Then the "keepers" and the sellers got to fighting over it. Wifes uncle quit farming, sold out and moved into town. Both he and the aunt got new car/truck and went to work for the school. He as the bus coordinator/driver and her driving the special needs van. They are spending the kids inheritance. Meanwhile the kids wound up in court each with a lawyer. Judge ordered the 160 to be sold at market value and the money split. When it was all said and done and the lawyers paid each of the 6 got about 6K. This was about 15 years ago before land got so crazy.

Rick

Things like this normally are not real easy or real quick.

One question... were you so excited that maybe you didnt hear all the details about the family and such? Not un-common. I tend to hear what I want sometimes, and ignore the little details that I dont care about.

Anyways, if it comes to auction, you know how much you want to pay. In the mean time keep saving so you are ready, AND be patient.

I went back and forth on a 10 acre parcel recently. Finally closed last week of March. Lots of little BS here and there, but I did end up with it, for a price I was happy with. I am not a real patient person, and like to do things and be done. Real estate sales are some of the slowest things I have ever witnessed.

Rick

Yes it sounds like you just wait, and try to lessen your expectations because- I have been where you are, and have seen it happen a MAJORITY of the time- everyone smells money, and "keeping it in the family" doesn't mean a thing.
In fact it often goes the other way- there are rivalries, jealousies, and other family tensions and strife that go back to who knows where? "Grandma loved you more" !

Keep after it. Getting a batch of relatives to agree on anything is difficult, and the ones that are farthest away think they know more about everything than the ones nearby. I agree with what the other guys have said about the smell of money - your father-in-law will hear all kinds of bad advice from his siblings and others.

Ahhh! Nothing like the smell of money being divided amongst relatives.

Can I ask how much you are expecting to pay?

Lesson learned: Always get a signed purchase agreement in writing, up front. My BIL sold his house because he thought he had a deal to buy his neighbor's house. It seems that the neighbor's estranged wife didn't agree at all. Guess who ended up with no place to live?

In the current farmland market, an owner would be insane to do a private sale. Our family just sold some land at auction because at the current prices it makes no sense to lease out the land. The land didn't bring what we expected at the auction; we got nearly DOUBLE what we expected.

My BIL always said you can pick your nose and butt but you can't pick your relates. I farmed for a cousin that was a generation older. The land was right next to me. Got along good, he died and got along the same with his wife. The wife dies and has a trust. I farmed this land for 30 years, no problems. They had 3 kids, 2 girls and 1 son. All about my age. Youngest dau died leaving 3 kids. Son approaches me to buy the ground with crop for $8K. I said yes, then later that day it was going to auction, no counter offer. His older sister wanted bigger bucks and his good friend was a banker in with an auctioneer was advising him. I have had previous dealing with the banker and would not trust him in an empty meat house!! The auctioneer charged 2% to seller and buyer. The land went for $9500 plu the 2% to Jimmy John sandwich guy that traded this GOOD BLACK for hunting ground along a river, acre for acre. I told the son later I would have given that price to them private. Well he ended up with a half million plus his Merck pension.

Another story about having a rich uncle but now having a rich brother is another story that is too long. I guess I just the BLACK SHEEP OF THE FAMILY!!

Sounds like you better be prepared for about anything and watch your backside. Hope it will eventually will work out for you and the best of luck.

Been there done that. With that said, the FIL has no right to sell anything. Until Grandma passes there is no estate. Hope things work out for you.