Heirloom Ranches Up for Sale Amidst Familial Disputes
A century-old ranch in the heart of California's Central Coast, known as Reynolds Ranch, is up for grabs. The sprawling 7,600-acre ranch is priced at a whopping $30.7 million, thanks to a family falling out concerning the property's future. The heirs to the property find themselves unable to reach a consensus on what should be done with the family legacy.
The current caretaker of the ranch lamented the struggle of making collective decisions as a family. Given the chance, she would buy out the ranch and take ownership under a limited liability company.
Unfortunately, this is a problem many extended families face. With family members spread all over the country, and even overseas, it's hard to agree on the future of such a vast property. Especially when some members, who barely visit, would rather cash out.
The Rising Trend of Selling Legacy Properties
More and more families are choosing to sell off their long-held properties. These large-scale, legacy properties are desirable, even if they aren't as in-demand as during the pandemic peak. The allure of wide-open spaces, slower-paced life and the appeal of the "Yellowstone" effect - a trend where fans of a popular show seek out large properties in western states - keep the market alive.
The caretaker of Reynolds Ranch believes that anyone who buys the property will feel like they've found paradise when they sit on the porch, sipping their drink, and take in the beauty of the ranch.
A Rare Commodity: Historic Ranches
One real estate brokerage currently holds $700 million in listing inventory, a significant rise from just under $200 million a few years back. Many of these listings are historic, legacy ranches hitting the market for the first time in generations. For instance, the Antlers Ranch in Wyoming, a massive 40,000-acre property nearly triple the size of Manhattan, is priced at $85 million. This ranch is up for sale for the first time in five generations.
Large, historic properties are increasingly rare as many have been split up and sold off. Those that still exist are sought after for more than just their acreage. Many are surrounded by public lands that cannot be developed, offering prospective buyers privacy and the opportunity to engage with nature.
When families decide to sell these properties, it usually happens because the next generation has no interest in taking over, or the heirs can't reach a consensus. While it's bittersweet to see these unique properties sell, it underlines the transitory nature of ownership; land persists, but ownership does not.
The Shift in Wealth and Ownership
Many multi-generational ranches have already switched hands as ranching has declined over the decades. There has also been a rise in families selling off ranches they bought 20 to 30 years ago. These owners often don't have familial ties to ranching and purchased these properties after making their fortunes in tech or finance.
On the other hand, some families hope to sell their properties to local ranching families. However, it's more likely that a buyer from a tech hub will acquire the property due to its proximity and accessibility by private aircraft.
One advisor who works with agricultural properties notes that the transfer of generational wealth is reshaping the market. Many families that choose to sell do so more out of financial necessity than disinterest.
The Challenges of Buying Legacy Properties
While legacy ranches are appealing, potential buyers must conduct thorough due diligence. These properties usually have long-serving managers who may leave upon sale, proving difficult to replace. Or they might stay and struggle to adjust to new ownership.
Buyers seeking complete privacy may also be in for a surprise. The previous family might have verbal agreements with neighbors to cross through their property. Additionally, the public might have rights to fish in rivers located on the private property, depending on the state laws.
Buyers also desire modern conveniences, such as proximity to major airports and move-in-ready properties with modern amenities, which these multi-generational ranches often lack.
For sellers, the sale may bring a windfall, but it's hard to replicate the lifestyle that comes with owning a legacy ranch. Letting go of a property that has been in the family for generations is a difficult decision, but it can also bring joy to the next family that calls it home.