When it is time to sell your property, you have one primary objective in mind:

• How Do I Maximize My Value Received?
• Should I Sell This Property Myself to Do So?

While this is the most important objective, there are several other issues that you may need to consider:

• Minimize selling time
• Maximize the probability that a "deal" results in a successfully closed transaction
• Minimize the risks of residual liability
• Tax considerations

HOW DO I MAXIMIZE MY VALUE RECEIVED?

Fortunately, the means to achieving all of the objectives above are compatible, and solving any of the objectives can help optimize the others. When you list your property using Rincon Corporation we employ the following procedures to ensure that we prioritize and achieve your objectives in the sale of your property.

1. Understand your objectives and priorities- Everybody has a somewhat different reason for selling their property, and they may have different objectives to achieve when doing so. In order for Rincon Corporation to best meet your individual needs, it is important that we understand your exact situation and reason for selling. For example, if a quick sale is critically important, we would likely employ different marketing and sales strategies than we would for someone who would like to take their time and see if they can “get their price”.

2. Analyze the Strengths and Weaknesses of the Property-Just like every person is different, so is every property. It is important to understand the nuances of your property, knowing the market impact of each, and find ways to maximize the strengths and minimize the weaknesses.

3. Make Recommendations to Prepare Your Property for Market-Once we know your objectives and then understand the strengths and weaknesses of your property, we will make recommendations if appropriate to better position your property for the market. For example, if your objectives are to maximize value without a great need to expedite the sale, then you may want to spend the time and money to solve some environmental problems, fix broken irrigation lines, obtain permits, zoning, lot line adjustments, etc. Perhaps you need to renegotiate leases, easements, water sharing agreements, etc. Often times, there are old items on the title report that need to be cleaned up.

4. Structure the Property Offering to Achieve Objectives- Sometimes “the sum of the parts is greater than the whole”, or in other words your property is worth more by selling it in pieces according to their respective highest and best use. Other times this may be contrary to your personal objective of a quick sale. Do you want to consider taking a note back, or do you want to cash out? Perhaps a long-term lease can take the place of a sale. Is your property best marketed for a different use than its current use?

MARKETING YOUR PROPERTY

Once we have determined your personal objectives, your property’s strengths and weaknesses, and determine how best to mold those into a marketing strategy, its time to “go to market”.

Marketing is the act of compiling, presenting, and distributing information to prospective purchasers. Rincon’s objective in creating a marketing package and strategy is to:

• Present complete information and quality information
• Present your Property Information in a professional presentation that attracts the buyer's interest and maximizes their image of your property
• Present your Property Information to the greatest number of prospective buyers and create maximum market awareness
• Arrange for professional tours of your property

Quality Information – A lot of the work here belongs to you. We will provide you a checklist to obtain information that you have on your property that we will need to do our job, such as well reports, production history, etc.. Additionally, there is information that we will assemble on your behalf, such as title information, assessed values, etc., in order to provide the highest quality and most complete information to prospective buyers.

Professional Presentation – Once the Property Information is compiled, it must be presented to prospective buyers in the most professional, clear, concise, and intriguing manner. The idea is to attract the buyer’s attention and then maximize their image, and thus the desirability and value of your property. To achieve this, Rincon will create a “Flyer”. The Flyer is used as a direct mailing piece, or as a response to a very preliminary inquiry. The Flyer is also the basis for a web page that will be inserted in the Rincon Web Site promoting your property. This provides instant worldwide access to anybody with Internet access.

If the Flyer creates further interest, or if initial interest and buyer qualification warrants, a prospective buyer will be sent a “Package”. The Package will contain all the Property Information necessary for the buyer to make an informed offer for your property. We want the buyer to be confident in the value of the property that he is making an offer on.

The Package has historically been a bound “book” containing all of the Property Information presented in a very professional manner. While we still utilize this method of presentation at Rincon, we have also developed our proprietary “RealAg Multimedia Presentation”. Using today’s most modern technology, “RealAg Multimedia Presentation” presents your Property on a CD Rom Disk. This allows a greater amount of information, which is easier and faster for a prospective buyer to review. It also allows for greater portability and more impressive audio and visual enhancements to the Package.

Create Maximum Market Awareness – Rincon maintains a proprietary database of all local agricultural operators, landowners, investors, and out of area entities interested in California Central Coast agricultural property. We employ this database in a direct mail campaign customized to your Property and your objectives. While this is generally the most effective form of marketing, we employ more mass distribution of your Property Information in order to ensure the greatest chances of a prospective buyer being reached. To do this, we utilize:

• Rincon Web Site- Agricultural Properties for Sale
• Listing on internet agricultural real estate sites
• Member Multiple Listing Service-your Properties availability is made known to other area brokers
• Rincon is an active member of the local agricultural community (nothing beats personal relationships)

SELLING YOUR PROPERTY

There is often some confusion between the idea of “marketing” your property and “selling” your property. Whereas marketing is the act of compiling, presenting, and distributing information to prospective purchasers, selling is the act, or more appropriately, the art of producing a successful transaction.

Once a prospective buyer has demonstrated an actual interest in your property, the first step in selling is to listen. Through the art of listening, the salesperson will identify the buyer’s objectives. They will then communicate how your property will meet those objectives. Then the salesperson will listen to the buyer’s objections, or fears, regarding your property, and alleviate those to the best extent possible. This may involve additional research or information. It may just require explanation from the salesperson, whom the buyer recognizes as a competent professional in the industry.

A good salesperson will then communicate to the buyer how your property best meets their objectives. They will also communicate to the buyer that your property has the value you are asking for it, and that the buyer should act quickly and decisively to make an offer. An experienced and knowledgeable salesperson will impart an image to the buyer which will provide him the confidence that:

• Your Property and the Property Information is credible and accurately represented
• You as the Seller are fully informed of current market conditions and activities, and therefore will command a full and fair price
• Your Property is being efficiently and professionally marketed and presented, and therefore action is required immediately in order not to lose this buying opportunity

Selling also involves facilitating an offer and the subsequent negotiations. It is also important here for you to know if this buyer is really serious and capable of closing this transaction. If a buyer is not both serious and capable of closing, you may be subject to undue delays in securing an actual sale, and this could result in lost sales opportunities. The negotiation process can be quite tense, and professional and accurate communications are essential to avoid potential pitfalls. Negotiations are often where the most incremental dollar value is added to a transaction. It is important that you and your agent are in continual communications during this process, and that communications between you and the buyer are effective as well. Negotiations primarily center on purchase price initially, however there are several significant aspects to the transaction that must be fully negotiated. These are best done with the experience of having done many of these types of transactions for these types of properties, and include:

• Contingency period · Deposit and terms of risk
• Liquidated damages
• Term of Escrow and escrow company
• Buyers/Sellers rights during escrow
• Indemnifications
• Representation and warranties
• Terms of Financing, if applicable
• Tax Deferred Exchange issues
• Toxics and Hazardous materials issues
• Fixtures and appurtenances
• Title Policy

Selling ultimately involves the closing of the transaction. Once a deal is negotiated, drafted, and signed, then escrow is opened. During the escrow period, the buyer will conduct his due diligence, to satisfy himself that the items of contingency are satisfactory. This is where a Package of complete and accurate information will instill greater confidence and help expedite this process. Often issues and concerns arise during this period, which must be addressed quickly and professionally in order to avoid delaying or jeopardizing the transaction.

SHOULD I SELL THIS PROPERTY MYSELF?

I will Probably End up Selling my Property to my Neighbor – This is often the case, and sometimes the best solution for all parties involved. However, as the seller, you need to know that you have received the maximum price attainable on the open market. Also, your neighbor needs to know that you have viable alternatives for selling your property and therefore he must pay the highest price the market will pay. By listing your property with Rincon, this will be ensured. With Rincon Corporation’s various commission rates you will be assured that your individual needs will be taken into account at a reasonable cost.

I Can Net More Dollars if I Don’t Pay a Commission – If the price the market was willing to pay for your property was fixed, then this would be absolutely true. The question that you really need to ask yourself is, “Can I present my property in its best image, with maximum exposure to potential buyers, in order to receive the top dollar the market is willing to pay?” If the answer is yes, then you should sell it yourself.

WHAT WILL IT COST ME TO SELL MY PROPERTY THROUGH RINCON?

Typical commissions - in the industry for agricultural real estate range between 5% and 6% of the selling price. The commission is paid by the seller from the proceeds of the sale at the closing of escrow. This fee is negotiated between the seller and the broker prior to the property being marketed and sold. Of course, at that time no one knows how quickly the property will sell, or for how much. Sometimes very large commissions are paid for a transaction that requires little time or effort on the part of the broker. But at Rincon, we believe in providing you the highest quality of professional service at cost efficient pricing. Therefore, we have developed some unique commission structures to better reflect the efficiencies in which we run our company.

“Quick Sale” Commission Structure – The last thing you want to do is to pay a broker a 6% commission for calling your neighbor the day after you list your property and making a sale. And yet, you do want to take advantage of the full knowledge and exposure to the marketplace to ensure maximum value. In order to accommodate your needs here, Rincon has developed its “Quick Sale” commission structure. Whatever your commission structure is with Rincon, if your property goes into escrow within 30 days of listing and closes within 90 days of listing, and no other broker is involved, we will reduce our commission to 2% of the selling price.

Additional Commission Programs – We have several unique and customized commission structures. Please feel free to contact our office for individual consultation regarding your project and our evaluation of which commission structure best fits your needs.