Qualifying a land buyer on the first call

Qualify a land buyer on the first call by learning four things: what they want the land for, how they will pay for it, when they need to close, and whether they can take on what comes with this parcel, such as a lease, a CRP contract or a forest program. Ask plainly, early in the call, and write the answers down. A buyer who can't answer those questions isn't ready for a half-day showing on 120 acres.

Why qualify a land buyer on the first call?

A land showing costs more than a house showing. It can take half a day, a drive of an hour or more, the seller's permission during hunting season, and a walk across ground in whatever weather the day brings. Qualifying on the first call puts that time into buyers who can act.

It also protects the seller. When you bring a buyer to the kitchen table, the seller will ask whether that buyer can close. You should already know.

Qualifying isn't gatekeeping. A buyer who isn't ready today goes into the CRM with what they need, and they get the next call. Following up on land buyer leads covers what happens after the first call.

What will you use the land for?

Start here, because the answer decides whether this parcel fits and what they will ask next.

• Hunting or recreation. Ask how they hunt (bow, gun, both), how many people will hunt it, and whether they want it closed to the public.
• Farming. Ask whether they farm now, where, and whether they need to farm it next season. A tenant in place matters to this buyer.
• Building. Ask what they want to build and when. The building site, road, power, septic and zoning come next.
• Investment or 1031. Ask whether they need the income and whether a sale deadline is driving them.

If the answer doesn't match the parcel, say so and ask what else they're looking for. The types of land buyers covers how each one values land.

How are you paying for it?

This is the question agents skip because it feels personal. Ask it plainly: "How are you planning to pay for it: cash, a loan, or proceeds from another sale?" Buyers who are ready expect it.

Land loans and Farm Credit

Land loans are not home mortgages. Down payment, term, rate and appraisal work differently, and they vary by lender, so don't quote figures. Ask whether the buyer has talked to a lender who does land, and how long that lender's appraisal will take.

The Farm Credit System is "a nationwide network of borrower-owned lending institutions and specialized service organizations," established by Congress in 1916 (Federal Farm Credit Banks Funding Corporation). Compeer Financial, which describes itself as "a member-owned, Farm Credit cooperative" serving counties in Illinois, Minnesota and Wisconsin (Compeer), offers recreational land loans for hunting and weekend properties. Mention Farm Credit to a buyer who hasn't bought land before, and let them make the call.

For a sense of what financed buyers are paying, two Federal Reserve surveys of ag lenders:

These are survey averages of farm real estate loans, not a rate any buyer will get. The buyer's lender sets their rate. More detail is in how buyers finance hunting land.

Seller financing

A contract for deed or other seller financing is the seller's decision, and the rules for cancelling one differ by state. Don't offer it on the seller's behalf. If the seller is open to it, their attorney should draft it.

The 1031 exchange buyer

A buyer using 1031 exchange proceeds is on a federal clock. The IRS says "you have 45 days from the date you sell the relinquished property to identify potential replacement properties," and "the replacement property must be received and the exchange completed no later than 180 days after the sale of the exchanged property" (IRS Fact Sheet 2008-18). The 180 days can be cut short by the due date of their tax return, so their tax advisor needs to confirm the actual deadline.

On the first call, ask:

• When did your sale close?
• Have you identified replacement properties yet, and is this one on the list?
• Who is your qualified intermediary?

The buyer's deadline can become your closing date, so find it out before you write anything. The IRS also says a taxpayer's own real estate agent or broker, or anyone who acted in that role in the previous two years, can't serve as their facilitator. Leave the exchange mechanics to the buyer's tax advisor and intermediary.

When do you need to close?

Timing can stall a land deal as easily as price can. Ask when they need to close, and whether anything else sets the date: a 1031 deadline, the sale of another property, a lease year, or hunting season.

Then check that against the parcel:

• A farm lease in Iowa. If proper written notice isn't given by September 1, the tenancy continues for the following crop year (ISU CALT, Aug 30, 2024). A farmer buyer who needs to plant next spring needs to know this.
• A CRP contract. The buyer has 60 days to become the successor, or the contract ends on that land and the seller owes back payments plus interest and liquidated damages (7 CFR 1410.51).
• Hunting season. A buyer who wants to hunt it this fall is on a different clock than a buyer holding it for next year.

Can the buyer take on what comes with the parcel?

Some land comes with obligations the buyer inherits. Raise them on the first call, not at closing.

• CRP. Will the buyer take over the contract? If not, the seller faces the refund described above. See selling land with CRP.
• Wisconsin MFL. The program continues after a sale. The new owner files a transfer report within 30 days with a $100 fee (Wis. Stat. 77.88) and must meet the program's requirements. On land enrolled in 2017 or later, buildings aren't allowed unless used only for storage (WI DNR).
• Minnesota SFIA. The covenant "remains in effect" after the sale (MN Revenue).
• A tenant. Does the buyer want the tenant to stay or go? That answer sets the lease question for the seller.

Who can buy agricultural land

All three states restrict foreign ownership of land, each in its own way:

• Minnesota. "No natural person shall acquire directly or indirectly any interest in agricultural land unless the person is a citizen of the United States or a permanent resident alien of the United States." Entities face a similar test, and the statute lists exceptions (Minn. Stat. 500.221).
• Wisconsin. Nonresident aliens, foreign corporations, and entities more than 20 percent owned by them may not hold an interest in more than 640 acres of land in the state, with listed exceptions (Wis. Stat. 710.02).
• Iowa. "A nonresident alien, foreign business or foreign government, or an agent, trustee or fiduciary thereof, shall not purchase or otherwise acquire agricultural land in this state," with exceptions (Iowa Code 9I.3, 2026). A 2024 law added registration with the Iowa Secretary of State and raised penalties (ISU CARD Ag Policy Review, Spring 2024).

If a buyer is buying through an entity or from outside the U.S., flag it early and send it to the buyer's attorney. Don't try to answer it on the phone.

The first-call question list

Keep this next to the phone or in the CRM form.

1. Which property are you calling about?
2. What do you want the land for?
3. Which counties and how many acres are you looking at?
4. What's your budget?
5. How are you planning to pay: cash, a loan, or proceeds from another sale?
6. Have you talked with a lender who does land loans?
7. If it's a 1031 exchange, when did your sale close and who is your intermediary?
8. When do you need to close, and what sets that date?
9. Would you take over the CRP contract, MFL order or lease that comes with this parcel?
10. Are you buying in your own name, with partners, or through a company?
11. Who else is part of the decision?
12. When can you see it, in person or on a video call?

Question 11 matters more on land than on houses. Hunting parcels are sometimes bought by partners or families, and the person on the phone may not be the one who signs.

Before your next buyer call

Put the question list in your CRM as the first-call form, so every answer lands in the same fields. Decide, as a firm, what a buyer must show before a showing on a large or remote parcel. And ask the lenders you work with which of them do land loans, so you have names to give. More on how buyers decide is in land buyers.