Price a Reindeer Farm
Pricing a reindeer farm is an important step in a number of business processes such as buying or selling a reindeer farm, applying for property insurance or a loan based on your reindeer farm, or dividing assets at the end of a business partnership or marriage. There are farm brokers and appraisers who specialize in appraising income-producing farms like reindeer farms. However, with a correct overview of all of the farm's assets and their current value, as well as the costs and income, it's possible to do it yourself. The following steps will show you how to price a reindeer farm.
Steps
- Make an appointment with a local realtor or broker and ask for an appraisal on your land.
- You'll need to know the re-sell value of the real estate if you're looking to purchase, sell, or divide the property. For insurance purposes, you'll need to know the replacement value of your real estate.
- To appraise the reindeer farms' real estate, you'll need the original sales agreement for the land, as well the costs of any improvements made such as construction of a home and any outbuildings.
- Include information about the well, if there is one. Self-sufficiency when it comes to a water supply can add to the value of a reindeer farm.
- Find out if any zoning or other restrictions apply to the property.
- List all equipment in use at the farm. This should include such things as vehicles, trailers, power tools, training tools, cleaning equipment, and any other equipment used in the day-to-day running of the reindeer farm.
- Include an itemized value list.
- Estimate the performance of the reindeer farm for the past 3 years.
- You'll need an overview of your current reindeer herd in order to price the livestock. Estimate the value of the herd based on the resell value, as well as how much revenue it generates on an annual basis.
- Make a list of the costs of upkeep, such as food, veterinary bills, and grooming. Also list any income you make off them such as renting them out for events or income from breeding.
- Remember to include the costs of utilities bills, labor, insurance, and taxes.
- Put all of the data together in a plan. Use the estimated real estate value the broker gave you, plus the value of the equipment, and the value of the herd to determine how much the reindeer farm is worth. Compare this amount to other similar properties that have sold in the past year and be prepared to adjust the total in order to reflect the actual price people are willing to pay for a reindeer farm.
Tips
- Pricing a reindeer farm can be time-consuming task. Hiring a reputable and qualified assessor can be a time saving move that will give you an accurate estimate of a reindeer farm's value.
