Can Vineyards Influence Home Values?

Can Vineyards Influence Home Values?

If your property contains viable land for a vineyard and you have a passion for winemaking, you may have considered beginning a vineyard venture and encountered concerns about the effect on your home value.  No one wants to make a decision that will negatively affect their financial future, so it’s important to consider carefully the major changes you make to your land.  Vineyards are traditionally associated with long, relaxing drives and flavorful, hand-crafted wine, but does that translate into a value boost for the property itself?  The answer is not a simple “yes” or “no.”  Instead, it’s better to consider a vineyard within the greater picture of your property and the surrounding properties.

The primary driver of vineyard values is, of course, the price of wine.  When wine prices increase, so do the prices of grapes.  Likewise, when grape prices increase, so does the price of the land they inhabit.  However, it should be noted that this type of valuation is only relevant to vineyards that already exist.  The investment in a vineyard is a somewhat different discussion.

The climate for wine

In considering whether the development of a vineyard would be valuable, the most important factor is not the price of grapes or wine, but rather the climate that characterizes your land.  All types of land values are affected by climate, but climate is even more important when considering the value of farmland.  The ability to plant grapes during spring doesn’t necessarily guarantee they will last until harvest.  Likewise, nutritious and healthy soil that is conducive to the growth of certain plants may not actually be conducive to the growth of grapes specifically, especially if there are weather conditions that could threaten grapes.

Consider, for example, a homeowner who invests in a vineyard only to discover that their property lies in a climate zone that is prone to early frosts.  This could negatively affect the property value if buyers hoping to take over a vineyard knew they would encounter similar challenges.

In the absence of climatic dangers to the planting of grapes, a property with viable soil and space could be greatly improved by investment in a vineyard.  Property values of viable vineyards increase drastically when water distribution systems, growing plots, fermentation structures, and storage space are mixed into the consideration.

A functional vineyard can bring incredible value to a property, and this value only increases with various other factors in the winemaking industry.  For example, establishing relationships with grape buyers could mean a vineyard has an established name that would provide further value to the property that is the home to that name.  Similarly, if you plan to make your own wine in addition to growing grapes, the reputation of your wine could add to the value of the property.

In the end, the influence a vineyard could have on property value varies in step with the viability of the vineyard.  Careful research and applied passion, however, could very well lead to breathtaking increases in the value of your property, so, if you have the interest in establishing a vineyard, it’s worth taking the time to look into.

Brian Ends can help you find the real estate to let you pursue your passion

Brian Ends is one of Santa Clarita’s best real estate agents.  He has helped sellers get the best price for their vineyard and has guided buyers to choosing wisely.  Contact Brian today at (661) 964-1760 for more information.

 

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