Marc Reck is owner/broker of Reck Agri Realty & Auction. We thought his answers to some commonly asked questions would be both interesting and beneficial to our readers. If you have others you’d like him to answer, drop us a line at [email protected].
Disclaimer – This information is for informational purposes only and is not intended as professional advice; always consult your qualified advisors before making business decisions.
Do you have any advice for working through family situations?
Acknowledge and realize the following: 1) Legacies come to an end, this is both natural and normal; 2) No one can take away the memories (and that is your true legacy); 3) Fair is not necessarily equal; and 4) Be sure you have clarity and can accurately identify the emotions, passion, and sense of entitlement of all parties involved, as this will affect the decision making process and have long-lasting effects on relationships.
What is one thing all families can benefit from?
Parents, no matter how hard, deal with estate planning prior to your death. Partners, do a partnership agreement prior to going into business together, even if you are family (especially if you are family). Reduce verbal agreements, get things in writing, and don’t make assumptions.
Advice for landowners?
Hire a professional team i.e. attorney, CPA, financial planner, etc. The money you spend up front to have your estate set up correctly will save you hundreds of thousands of dollars in the end. One of the many reasons the family farm is not passed on to the next generation is lack of estate planning.
Advice for buyers?
Have your ducks in a row. Know what you can afford to buy. If working with a lender, visit with them first. Do your due diligence and don’t be afraid to ask questions.
Where do you see the land market heading for the remainder of 2024 and for 2025?
I see a flattening and potential softening of the market. Going into this fall, the overall attitude is less positive than in the past due to lower commodity prices, higher interest rates, and in some areas severe weather events. By no means do I foresee a major financial crisis as in the 80’s. Going into this fall and 2025, the land market will not be as vibrant as in the past, buyers will be more discerning, and we will see financial stress. Land values should remain relatively strong though, and to what degree, depends on location, condition, and quality of the property, segment of agriculture and the financial strength of the area. Currently a limited supply of land for sale and individuals wanting/needing to expand or diversify investments provides a safety net. This could all change depending on the outcome of the 2024 election.
What was your first job?
My first job out of college was working with Production Credit Association (PCA) in their Yuma (CO) Branch office as a loan officer. It was the best 2 years of education I could have asked for. Working with the different clients, their operations and finances, seeing what worked/what didn’t still helps me to this day. Those experiences gave me a better perspective and insight into the situations I am involved with today.
What challenges will you face as a broker heading into the next year?
Ensuring sellers are realistic in their expectations with the market changing. If the market softens, it may mean lower selling prices than the previous highs. Determining the most effective way to market a property due to the economic conditions. And when asked for advice, it’s a challenge to make sure I give the correct guidance for the situation, as people put their confidence in me and that’s a huge responsibility I don’t take lightly.
Best advice you’ve ever received?
Find your niche, become an expert, be yourself, be persistent, and create a reputation of someone people can trust. From this advice, I have developed three guiding principles: work hard; commit to the business full time; and don’t buy and sell real estate on my own accord and thus compete with my clients and customers (something I have never done).
