Vineyards and wineries are in their own world when it comes to markets. They tend to grow even if other property sales, like homes or commercial buildings, stagnate or even decrease. Many clients come to us with an underestimated value of their vineyard, which can disrupt long-term planning. Here are five reasons why you should secure winery appraisals in Napa County, CA:
- Rising land value: The amount of available land in California is on the decline. That is as true in Napa County as it is everywhere else. While wineries tend to stay with those who continue running them, the potential sale prices of wineries increases with the rising land values. If you are looking to sell your winery or vineyard, you need an appraisal so you can be sure to secure a fair price. Otherwise, you have no ground to bargain if you receive an offer.
- Secure financing: In the future, you may need to acquire new capital, hire additional employees or replace that tractor or farm gator you have been using since 1992. These efforts may require financing, and you are more likely to find a loan at good rates if you can show your winery holds a good value. An appraisal is also based on profitability, so a highly valued winery is also a solvent one. That also increases your chances of securing fair loan terms.
- Assure fair taxation: Many people who are in business for themselves, especially in rural sectors like vineyards, encounter tax disputes. The IRS and the state department of revenue may overestimate the value of your assets or audit your returns. When you are facing these challenges, an appraisal can help to resolve the matter quickly. Many times, solving a dispute is only a matter of having the right paperwork and documentation.
- Estate planning: The value of your winery affects your estate plan. If your estate is worth more than $1.5 million, your decedents face additional taxation. In many cases, it is wise to consider alternatives like placing the winery in a trust so it benefits your loved ones while also avoiding taxation. These options must be discussed with an estate planning attorney so you make the best decision. An appraisal is the first step to creating a plan that keeps the winery in operation and benefiting your successors.
- New equipment and improvements: If you installed a new sprinkler system or tasting room, that will affect the value of your winery. Even a feature like a picnic area or outdoor seating area for guests will add more value than you might realize. If you have not secured an appraisal since making improvements, get one as soon as possible. The new value may change your estate or taxation plan. You cannot make these adjustments unless you have an accurate value for your winery or vineyard.
If you require winery appraisals in Napa County, CA, call County Appraisals Inc. We are an expert in estate, winery and vineyard appraisals and can assure the accuracy you need for long-term planning.
Categorised in: Winery Appraisals
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