Valuing real estate can be a difficult, time-consuming task for even the simplest of properties. Understanding current market conditions, comparable listings, and the land’s appeal and its structures can quickly overwhelm sellers. But if you’re pricing a unique legacy ranch, the considerations reach an entirely new level of complexity. Wide stretches of ranch land have a spectrum of ever-changing variables that must be identified and valued to fit a market where no two properties are alike. This is not easy.
Among the many considerations in setting a price, here are some of the challenges you’re likely to encounter.
Understanding the Market
Regardless of the size, location, and attributes of the ranch, comparable properties are likely few and far between. This is the nature of selling a one-of-a-kind landscape. The best comparable ranch for a property in Colorado might actually be in Wyoming. Factor in that the land prices in the areas surrounding these similar properties might very well be different, and you’ve got a tough assessment to make. Often, the necessary information needs to be uncovered through banks and county offices, and without pre-established connections, this can turn into a lengthy process.
The market itself fluctuates, as well. Knowing how the ranch market is trending — up, at its peak, down — is vital toward establishing a price and choosing the right time to sell.
Defining the Ranch
This might seem like a basic step, but accurately evaluating the type of ranch you have makes all the difference.
A working cattle ranch and a recreational fly-fishing ranch will offer very particular personal and financial opportunities for buyers. Not only will the pricing differ between the two, but the criteria by which you value the properties will differ, as well. In the same way that fish population won’t be as relevant in the established cattle ranch, grazing acreage won’t be as relevant in the fly-fishing property. Proximity to airports and city centers may matter more for the fly-fishing ranch, while proximity to bovine veterinarians would be valued in the cattle ranch.
These determinations matter when marketing your property.
Seeing the Land’s Potential
Even if many years have gone into developing the land and refining the systems of the ranch, a property may have untapped potential that appeals to prospective buyers. Whether it’s timber, oil, minerals, or further development and conservation potential, knowing exactly what you have in the land can shift the overall value of the ranch.
Furthermore, understanding the status of the mineral and water rights, alongside the tax benefits of new conservation easements, can affect how you price. These considerations of land potential are many, and shouldn’t be overlooked.
Pricing your Legacy
Legacy ranches represent a deep labor of love, often stretched over multiple generations. Owners, ranch-hands, and families spend decades shaping and maintaining the land, building ranches into homes, retreats, and the foundations of their livelihoods. These places are filled with memories and signs of those who were there before, and those are big reasons why legacy ranches are so special. But it can be difficult to separate these emotions from the selling process. Unfortunately, when it comes to pricing your ranch, the emotions tied to it can complicate and muddy how you value the property. This is natural, and just another part of the process.
At Ranch Marketing Associates, our seasoned brokers live the ranch life, and know the importance of embracing the legacy of your property, while exploring every opportunity to increase its value. Our pricing expertise is one of the main factors that sets us apart from our competitors. We are dedicated and experienced in navigating the complex and varied considerations needed to buy, sell, and maintain ranch properties throughout the American West and beyond. Browse RMA’s ranches for sale in Colorado, California, Texas, New Mexico and Wyoming or contact us today to learn how we can help.