I attended a luncheon in Penticton yesterday put on by the Real Estate Institute of BC. The speaker was a well known and experienced appraiser, Iain Hyslop with Inland Appraisal. Iain spoke on the topic of how to put a value on Vineyard properties and the trends that he saw playing a roll in the future values.
He started by noting that the most common way to evaluate a vineyard is by comparing it to recent sales for vineyard properties. Typically, a range of “per acre” values for producing land would be arrived at. He felt that for most of the South Okanagan these values were currently between $95,000 and $110,000 per acre. Where the property fell into the range would depend on age of plantings, varietal, condition of the vineyard and location.
Other contributing factors that would impact value would be any improvements.
Homes could be best evaluated by comparing similar dwellings to homes sold on regular lots, then deducting the value of the lot to arrive at a reasonable price for the “home” component.
Included equipment is a little trickier, and in his opinion is usually over-valued. The cost less depreciation is one way to set this value.
Another factor is non-producing land – is it useable? plantable? does it provide a benefit?
As far as his “predictions”, he said he felt that the “trophy” buyer looking for a vineyard estate without regard to the income potential had pretty much left the market. He sees prices being stable at best, and that we may even see price declines to the $80,000 per acre range.
Of course, time will tell! Still, an interesting and informative look into vineyard values in the South Okanagan.
Tags: appraisal, real estate, value, vineyard, winery
