Wine Farm Valuations
When one looks beyond the romanticism of a wine farm, it is extremely specialised in nature when it comes to placing a market value on such. We look at the property and its components such as homestead, ancillary buildings and land.
When assessing the land component, the following factors are taken into consideration: location, position/orientation, slopes and terrain, water sources, types of vines and rootstock, cultivar (grape variety), tons per hectare (output), type of soil, land use, state of "health" (virus / fungus infected vines) and composition amongst others.
All these factors are taken into account when utilising the comparable sales method of valuation, where the selling prices of similar farms in the same area are utilised to determine a market value, after certain adjustments are made in order to make the comparable sales as similar as possible to that of the wine farm being valued.