Helping Farmers Acquire and Sell Property
We are pleased to provide our 10th Land Value report provided to us by Ryan R. Parker, B.Comm, AACI, P.App, P.Ag, CAFA of VALCO Consultants Inc. This report is updated yearly and covers the major farm areas in Southwestern Ontario. We hope you find this useful in making your decisions with regards to the acquisition or sale of farm property.
Each farm has intrinsic value attributable to it alone, it may be the location or the immediate market demand in the area or the improvements done to the land and or buildings. It is our responsibility to properly evaluate farms based on this real intrinsic value. Most farmers would be surprised how much variation there is in each area.
How do we determine market value?
Market value is determined by many factors, but the most important factor is the exposure of a property for sale to all of the potential purchasers. We believe that every property bought or sold should be done at fair market value and to that end we offer confidential consultation and marketing service.
Some farmers see Realtors as interfering with their ability to buy land at the "right price," but our view is that most farmers do not want to take advantage of Sellers when they are buying but would want to pay the fair market price and be seen as a fair trader in the community. In some cases, especially when the farmer has been renting, there is a feeling of entitlement to purchase the land which can be quite true if the tenant has been a good steward of the land and always been fair with the rent. Often it is a family member, personal friend or neighbour that is selling, and this is where it is most important to have a fair market value purchase price established.
We bring value to both sides of a transaction in these circumstances by being completely independent in determining the fair market value for the Seller and at the same time explore various options for the Buyer to maximize his purchase through tax positioning or various financing options that are a real cost benefit. For a reasonable fee we can negotiate a sale in these cases if all the parties want to complete a transaction and of course we are always available to market a property on the open market. We understand the complexities of being a Buyer or a Seller and work closely with your Accountants, Lawyers and other Professionals to create the best overall transaction.