IT’S often said that the standard of improvements, and their upkeep and maintenance can be a significant factor in getting a grazing property deal over the line.
Quality fencing is one of the key features of a rural property when it comes to market valuation and can often reduce ‘days on market’ and improve eventual sale price.
That’s the view of Clare Valley (South Australia) property agent Geoff Schell, who believes from experience that the installation of a quality fence, or simply maintaining existing fencing in good order prior to listing is a wise move.
“Fencing is one of the key areas we assess when appraising a rural property for possible sale, along with production history, water and other infrastructure improvements,” Mr Schell said.
“An investment in fencing by a vendor often helps to assist our negotiations in a sale, as it may well give the buyer confidence knowing that the property is well-established and does not need further attention or investment in fencing infrastructure,” he said.
“If a property has run-down fencing, it may be seen as an indicator for the underlying state of the rest of the property and possibly damage the confidence or enthusiasm of a prospective buyer when they are making their final decision or considering a stronger offer to purchase.”
“This may mean that the property sale price may be discounted or worse that the buyer decides against purchasing the property.”
Mr Schell has been in the real estate game for 10 years, specialising in rural sales throughout the mid north and upper north of SA and also the pastoral regions of SA.
He is the Principal of Ray White Clare Valley and has earned a strong reputation for his thorough knowledge of the region’s rural property market.
He’s also spent over 30 years as the owner and operator of a farming business, so knows first-hand the value of quality, well-maintained fencing to a property sale.
“If you’re going to do it, do it properly, and invest in quality products,” he said.
Mr Schell and his wife Karen have run a sheep and cropping enterprise on their family property Wahroonga near Burra in South Australia. Today his son in-law Mathew Koch and daughter Denika operate their own farming business on the family property.
While the upfront investment can be considerable, Mr Schell said in all cases repairing or replacing run-down fencing is a worthwhile endeavour for future management and a great investment.
By investing in quality fencing prior to listing a property for sale, property-owners can often increase the asset value by creating a more positive impression of the property and engaging more potential buyers, he said.
“Many astute farmers view an investment in fencing as a good business decision. If fencing is done right the first time, it is an attractive offering for potential buyers,” Mr Schell said.
He said that the use of quality Australian-made fencing products like Waratah’s offerings is especially important in his region, where he has seen a distinct resurgence of interest in the sheep and cattle.
“Strong commodity prices have increased confidence in sheep and cattle enterprises and producers are seeing more reason to invest in crucial property development like fencing to protect stock and improve and manage their breeding operations,” he said.
“If a prospective buyer can see that a property is well set up and equipped for them they are often certainly more likely to confidently enter into a purchase agreement.”