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Value Point Analysis ™

Value Point Analysis ™. Learn More. What is Value Point Analysis ™?. Value Point Analysis ™ (VPA): Determines Gross/Net Plantable Acres using a GIS Mapping Survey. Analyzes Soils, Climate, Appellation, Slopes, Water and other physical site characteristics for suitability for vineyard use.

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Value Point Analysis ™

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  1. Value Point Analysis™ Learn More...

  2. What is Value Point Analysis™? Value Point Analysis™ (VPA): • Determines Gross/Net Plantable Acres using a GIS Mapping Survey. • Analyzes Soils, Climate, Appellation, Slopes, Water and other physical site characteristics for suitability for vineyard use. • Provides estimate of market value (based on credible data) by licensed agricultural appraisers. • Estimates economic feasibility of a vineyard operation for the property. • VPA can also estimate value for home-sites, legal parcels, buildings and improvements, and permits.

  3. Why is Value Point Analysis™ Important? North Coast land often possesses “hidden” vineyard land value that can be worth $35- $90K per acre. It is common for Owners/Buyers to be unaware of the amount and quality of plantable land on a property. Owners/Buyers cannot know the true market value of a property if they don’t know the plantable land value. VPA answers these questions in a cost-effective manner (Full Feasibility Studies are expensive and do not provide a valuation analysis). VPA can be incorporated into a bank appraisal.

  4. The Value Point Analysis™ Process • All public information is collected. • Site inspection is performed by a Licensed Agricultural Appraiser. • Creation of a GIS Map Survey. Mapping includes: • Parcel Boundaries (based on Assessor maps) • Appellation • Soils • Slopes • Aspect • Estimate of Plantable Acres • Estimate of Market Value is developed. • VPA Report is delivered to Client. • VPA can be incorporated into a full (Bank) Appraisal Report for the property.

  5. VPA Case Study(Based on an actual Sonoma County transaction in 2009) Situation: • A 38 acre property with a 1,500 sf home was listed “For Sale” in the Mayacamas Mountains at $1,595,000. The Listing Agent reported the property had no plantable land. • A Buyer from outside California made a $1,500,000 offer, which was subsequently accepted by the Seller. The Buyer believed the property had vineyard land value and wanted to confirm how much plantable land there was and how much it was worth. • The Buyer commissioned Blakeslee & Crain to perform a VPA as part of Buyer due-diligence to determine the plantable land value of the property. • B&C reviews public records concerning the property. • B&C develops a GIS Maps Survey: - Parcel Boundaries - Slopes - Appellation - Aspect - Soils - Estimate of Plantable Acres • B&C analyzes data and maps and issues the VPA Report. Continue

  6. The Results of the VPA Report: Determinations: • Physical site conditions and water quantity were adequate for wine grape production. • The property had 8 plantable acres suitable for growing high-quality Cabernet Sauvignon. • Plantable Acres are determined to be worth $60K each. • An Economic Feasibility Analysis supports the value conclusion. • Price Analysis regarding this transaction: • Homesite Value: • House Value: • Excess Acreage Value: • Offering Price Summation: • Plantable Land Value: • Indicated Property Value: $900,000 $400,000 $200,000 $1,500,000 $480,000 $1,980,000 (estimate based on offering price) (estimate based on offering price) (estimate based on offering price) (value not recognized by Seller) Continue

  7. Summary Conclusion(s) from Case Study: • From this case study it was determined that the Seller was not well informed regarding the vineyard land value of the property. The Listing Agent, an agent who is neither a licensed appraiser or trained vineyard specialist, was unaware of the vineyard land value and therefore was not able to advise the Seller/Client adequately. • At the time of sale, there was significant market demand for vineyard land in the Mayacamas Mountains that was suitable for growing high-quality Cabernet Sauvignon wine grapes. Numerous active Buyers were present in the market. • The Seller, being uninformed regarding their property’s vineyard land value, sold the property for less than the full market value. A Value Point Analysis performed by the Seller prior to listing the property may have resulted in as much as $480,000 in additional sale price. The Buyer captured hidden value in the purchase of this property. • The Buyer promptly completed the property purchase after receiving the VPA report.

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