Assessing the Value of a Farm for Sale Based on Barns and Out Buildings

You don't have to shop around for a farm for very long before you realize that land, in and of itself, is far cheaper than buying land that has been worked (and is not overgrown) in the last 3-5 years is worth considerably more. Add a farm house and, again, the value goes up. And, if you're shopping for a full blown working farm, complete with housing, outbuildings and a barn an entire new cost equation enters into your offer to purchase.

Assessing A Working Farm with Outbuildings

Unless you've done this before or have been shopping for a while, it's hard to estimate the value of a property. You could ask your agent for their opinion, but please remember that real estate agents have their own agenda - to get you to spend as much as possible and increase their final commission on the sale.

In Canada, and likely in the USA, the best alternative is to hire a property evaluator.

These people are certified and trained professionals with a strict code of ethics. Using size, age and condition of the property and existing buildings - as well as current market value and recent sales in the neighboring region - they will give you a complete report, including fair market value, on each property you have assessed.

At any rate, if you're applying for a mortgage or loan for your farm, your lender or bank may request that this is done as one of the conditions of financing (and roll the cost into your loan amount).

Farm, Barn, and Existing Buildings on the Property

If you're planning on evaluating and assessing a farm for sale on your own, consider each out building carefully. Will it last? Should it be rebuilt? Restructured? Roofed? Will it suit your needs for the type of farming you want to do?

Remember too, that all barns aren't created equal. Some are better suited to horses, others to goats, and again an entire different criteria exists for cattle. Excellent barns have ample space for off-season hay storage, and good 'bones' so that modifications are easy to do for each type of animal you may choose to keep.

Building Types

• Home

• Barn

• Shed

• Privy

• Chicken Coop

• Pig Pen

Some Factors to Consider

• size of building

• privacy

• vehicular access

• access and proximity of water to barn

• previous and current maintenance

• position (facing south is best for heating and cooling)

• storm windows and screens

• wood rot - look both inside and out

• termite, carpenter ant infestation

• age of water heater in house

• size of water heater in house (family of 4 = 30g. if gas, 50 if electric)

• age of home heating system

• stains on ceiling (leaky roof)

• stains on basement walls (flooding)

• electrical service capacity (modern service is 100 amps/240 volts)

Hiring A Professional to Assess Farm and Barn

Hiring a House Inspector or Building Engineer can give you some valuable information on the age and condition of the buildings on the property. Their report will either afford you an easier night's rest, save you from a poor investment, or present you with a powerful bargaining tool for negotiation with the current owner or your mortgage lender.

Finally, don't forget to check out our Farms for Sale listings

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