When you think of regions throughout the world that are well-known for producing great wine, Napa Valley, California is undeniably among them. Like the Loire Valley in France or the Pyrenees Region of Australia, Napa Valley has the climate, fertile ground and abundance of naturally-growing grapes needed to be a world-class location for wine production.
It’s for this primary reason that much of the real estate in Napa is actually transacted as vineyards and wineries! Every acre has the potential to become the next fruitful producer of an award-winning vintage, which means every winemaker worth their craft is clamoring for a spot in the treasured valley. Needless to say, winery appraisers in Napa County, CA are constantly being asked to visit both developed and undeveloped plots throughout the area.
Valuating vineyard land
There are two chief ways in which wineries and vineyards are commonly assessed and valuated. This depends on whether or not the land has been previously occupied versus undeveloped:
- If there’s an existing winery on the property, it’s most often valued by way of “comparable features.” Comparable feature valuations are done by taking the composite values of similar properties that have recently sold to determine the value of that property.
- If the land is undeveloped or unique for any reason, valuation comes down to determining the individual aspects of a property, then adding them up to determine a greater selling value. For example, is there a well on site already? What about utilities? What does the access look like? Are there easements? What other defining features does the land have? Adding these up can create a composite land value that’s accurate.
For vineyards and wineries, winery appraisers in Napa County, CA may also take into account historical data in determining the overall value of the land in question. For example, has it produced a reliable crop of grapes consistently for years? Are there notable developments that might merit historical value—such as a formally successful winery?
Finally, planted versus unplanted land—also known as plantable and horse land—can drastically affect the value of a particular parcel. This is Napa Valley we’re talking about! If you can’t plant on the acreage you buy, its value is going to drop heavily in comparison to land that’s ready to yield the next potentially award-winning crop of winery grapes!
Pairing land value with long-term expectations
Buying land in Napa Valley for the purpose of growing grapes and building a winery means investing in a quality tract of land that has the potential to serve you in your endeavors. But, as you might imagine, buying land in one of the world’s premier regions of wine production doesn’t come cheap! It’s all about how you intend to justify your investment in the land that makes the value worth the price.
Consider the land your buying and your intention for that land before you start speaking with winery appraisers in Napa County, CA. When the time comes to put a bid in on a tract, you’ll have the information and confidence you need to make a sound decision.
Categorised in: Winery Appraisals
This post was written by Writer