Land Commodities’ proprietary analytical tools allow us to efficiently and cost effectively subject potential acquisitions to rigorous, objective statistical analysis. The analysis we produce for our clients cuts through land agents’ marketing hype, irrelevant cosmetic assessments and irrational regional pricing anomalies to provide the numerical truth about a farm’s true productive potential, relative value and investment merit.
Where the case for an acquisition is compelling, the quality of our due diligence materials will give you an information advantage in the negotiating process allowing you to make economical bids for farms that other buyers might miss and to avoid overpaying for farms that receive undue / irrational buyer interest. In short, by working with us you will be able to maximise returns by exploiting the very real inefficiencies that exist in the farmland pricing mechanism.
Our standing in the local agricultural community (in particular with land agents and banks) is such that it is extremely likely that we will be able to negotiate a better purchase price than you would be able to achieve acting independently. Indeed, we pride ourselves on achieving under-valuation purchases on behalf of our clients and our advisory fees are always more than offset by the discounts we achieve.
Our usual operating procedure is to acquire properties on a ‘subject to valuation’ basis. In other words, a price is contractually agreed with the vendor and an independent valuation is undertaken prior to completion such that the buyer can withdraw from the purchase if the agreed price is not supported by the valuation.
We will not recommend a property to a client unless we are highly confident that it can be purchased below its likely sworn valuation. This means our clients are ALWAYS able to make acquisitions at or below valuation (and in some cases well below). ‘Bad deal costs’ associated with progressing potential acquisitions that do not result in a purchase are also kept to an absolute minimum.
In the course of negotiating and acquiring properties, we can work alongside legal service providers with whom we have established excellent working relationships and competitive pricing, or we can work alongside your own legal counsel.