Recent upward trends in land prices have left many owners wondering if now is a good time to sell their property. That decision-making process often begins with understanding how much land is worth.
But just because you heard that something sold for an astronomical amount doesn’t mean that they all will. How do you put a number to your land values? The team at Murray Wise has a few suggestions.
1. Location, location, location
Location is key. It’s a well-known adage, and it’s absolutely true. Whether it’s farmland in the perfect place, acres close to the right desirable area or just tillable acres close to something a landowner is already farming, location is a primary factor in assessing land value.
2. Total number of acres vs. usable acres
When you’re trying to assess the value of your farmland, make sure you’re comparing apples to apples. Cleared tillable acres tend to bring more than timber ground, and ditches and wetland can also impact the value of a total tract.
3. Soil types
Some dirt is just better than others because of how it drains, holds together or transports and protects nutrients. Your soil type can impact the value of your property, as it can impact the yield and usage potential of the tract.
Leases can have a positive or negative impact on your land value. They often provide passive income but can leave your land tied up for a period of time. Make sure you know what long-term leases are on your property, including terms and rates. Also, consider if the property is involved in government programs such as the Conservation Reserve Program.
While they aren’t making any more land, as the saying goes, they are making ways to improve it. Land with on-farm storage, irrigation systems, drainage tile or other additions can often draw a higher price than land alone.
6. Clean title
Having a title that is free from any encumberment or issue will make it easier to sell and thus may draw a higher price. In the same way, a clean survey with no boundary disputes or easement issues can make your property more sellable.
7. Data is king
The more you know, the easier it is to market your property. Proven yields, soil test results and fertility levels can impact the amount a potential buyer is willing to put out on a farm.
You don’t have to do it alone
The team at Murray Wise Associates has the experience and tools you need to understand what your property might be worth. Whether it’s soil types, boundary lines, proven yield history or a host of other attributes, MWA can help you find out what you need to know to get the most out of your land.
With land transactions totaling more than $5 million across 43 states, MWA has been helping owners get top value for their land for more than 25 years. Our experience in the industry and connection to potential buyers can help your selling process go smoothly and help you meet your goals for the sale of your investment.