Consultation • Valuation • Brokerage Services
Your investment. Your Farm.
Land Valuation
Protecting Assets - Preserving Wealth.
ALL THINGS REAL ESTATE START WITH “WHAT IS IT WORTH?”
Whether you plan to sell your property or retain it, you need to have an accurate assessment of your farm’s value. Broker Price Opinions can be of great value. Results Opinions consider soils, capabilities, water appropriation, minerals, wind leases,solar leases, and of course, location.
Time of Death— Stepping up the basis on your asset is more than advantageous — it is crucial! Establishing a new basis is vital to making plans as to the future of your asset. In addition, a new basis will greatly reduce capital gains in the event of a sale.
Estate Planning— An Opinion can be of immense value to you and your family in makingplans as to what to do with your farm.
Internal Sales— Tenant or Family Member — You need to know what current market valueis to get started, even if you make them a better deal than market value. It is still vital thatyou have accurate data to make an educated decision.
External Sales— So, you have decided to sell the property on the open market… accuratepricing is paramount. Results’ Opinions are established using comparable sales data fromwithin the market where your property is located.
Historical Opinions— We often come across an owner who did not get the appropriate workdone at TOD, but who now wants or needs to sell. Your accountant will need a basis as to thetime you inherited the farm to assess capital gains. Again, crucial data to make an educateddecision — what will long term capital gains be? Do you sell — and, if so — do you pay thetaxes or plan for a 1031 Exchange?
Results Opinions of Value have been widely accepted in the agricultural real estate arena: our clients include Families, CPA’s, Trust Departments, Attorneys, and Lenders.
Valuation
Whether you plan to sell your property or retain it, you need to have an accurateassessment of your farm’s value. Broker Price Opinions can be of great value. ResultsOpinions consider soils, capabilities, water appropriation, minerals, wind leases,solar leases, and of course, location.
Consulting
Whether you plan to sell your property or retain it, you need to have an accurateassessment of your farm’s value. Broker Price Opinions can be of great value. ResultsOpinions consider soils, capabilities, water appropriation, minerals, wind leases,solar leases, and of course, location.
Brokerage
Services
Whether you plan to sell your property or retain it, you need to have an accurateassessment of your farm’s value. Broker Price Opinions can be of great value. ResultsOpinions consider soils, capabilities, water appropriation, minerals, wind leases,solar leases, and of course, location.
Valuation and Broker Price Opinion: Essential Tools for Land Real Estate
Understanding the true value of your land, whether agricultural or otherwise, is fundamental to making informed decisions about your property. In the realm of land real estate, services like land appraisal, land valuation, land consultation, and agriculture consulting play a pivotal role. These services, often delivered by a land broker or within a land brokerage firm, provide invaluable insights into the worth of your property.
Broker Price Opinions (BPOs) have emerged as a significant tool in the land valuation process. A BPO is an estimated value of property as determined by a real estate broker or other qualified professional. Although it doesn’t represent an official appraised value or the market value, it offers a well-informed estimate based on various factors. This is particularly useful in agriculture consulting, where understanding the intricacies of land value can impact both current operations and future planning.
Considering Various Factors
In agricultural settings, BPOs consider numerous elements such as soil quality, capabilities, water rights, mineral presence, wind and solar leases, and, crucially, location. Each of these factors contributes uniquely to the overall value of the land. For instance, fertile soil and reliable water rights might increase agricultural land value, while the presence of renewable energy leases can add a different dimension of worth.
Time of Death (TOD) and Estate Planning
A critical moment for reassessing land value is at the Time of Death (TOD) of the owner. Stepping up the basis, or the value of the asset for tax purposes, is essential. This reassessment not only helps in planning the future of the asset but also reduces potential capital gains taxes if the property is sold. Similarly, in estate planning, an accurate BPO can guide decisions regarding the future of the farm within the family, ensuring a fair and equitable division or continuation of the property.
Internal and External Sales
Whether selling to a tenant, a family member, or on the open market, understanding the current market value is crucial. Internal sales might offer better deals than market value, but having accurate data is necessary for educated decision-making. In external sales, accurate pricing is paramount, and BPOs provide this by using comparable sales data from within the market where the property is located.
Historical Opinions
There are instances where a landowner may not have obtained a valuation at the TOD but now needs to sell. In such cases, a historical opinion is vital for your accountant to assess capital gains. This data is essential to make educated decisions about long-term capital gains, selling the property, paying taxes, or planning for a 1031 Exchange.
Widely Accepted in Agricultural Real Estate
Results Opinions of Value, a form of BPO, have gained wide acceptance in the agricultural real estate arena. Clients including families, CPAs, Trust Departments, Attorneys, and Lenders rely on these opinions for making critical decisions about land properties.
BPOs vs. Land Appraisals
It’s important to distinguish between a BPO and a land appraisal. A land appraisal is a more formal, detailed process often required for official transactions like obtaining a mortgage or settling legal disputes. In contrast, a BPO provides a quicker, less expensive estimate of land value. While BPOs are not allowed or used in every state and are subject to state laws, they offer a more accessible option for landowners seeking a general valuation.
Types of BPOs
Brokers may perform different types of BPOs, such as drive-by or internal. Drive-by BPOs involve external examination of the property, while internal BPOs require authorized access to the property for a thorough review. Brokers may also use BPOs as a tool to win listings, often including a marketing plan for the property to showcase their approach to potential clients.
Conclusion
Whether you are a landowner, investor, or involved in agricultural consulting, understanding the value of your property is critical. Broker Price Opinions and land appraisals offer different levels of insight, but both are essential tools in the land brokerage industry. By leveraging these tools, you can make more informed decisions about buying, selling, or managing land properties, ensuring both short-term benefits and long-term strategic planning.
Have Questions About Your Land?
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Results Land Co.
- 620.465.3499
- 21309 S. Willison Rd Haven, KS 67543 US
