Sell Your Vineyard
Vineyards have continued to transact within a typical to above average per acre price range and the key factors determining value have been and remain: location, vineyard size, location, water availability, location, grape contracts and remaining economic life of the vineyard.
For ‘location’, Napa and Sonoma were considered the place to have a vineyard during the fairytale 90’s. However, the majority of buyers have been priced out of that market. Due to the quality of life and value offered, both lifestyle and investor buyers proclaim the Central Coast as “the place to be”.
Who are the buyers in today’s active vineyard real estate market? On the Central Coast of California, vineyards under 100 acres are typically lifestyle buyers and often have a home or potential homesite on the property. Lifestyle buyers appreciate income, however it’s generally not the driving factor. Emotional connection, location and setting play a larger roll. Strategic marketing can attract more of this buyer category.
Vineyards over 100 acres are generally more attractive to agricultural investors and winery conglomerates. These folks are acquisition pros looking to expand holdings under the umbrella of a large holding company. These investor-types are also bean counters looking for cash flow (i.e. grape contracts) or under-performing operations with turn-around opportunities. These buyers can apply their vast resources, expertise and cash to improve an under-performing vineyard’s profitability.
Whether targeting lifestyle or investor buyers, preparing the property for sale includes making sure it’s clean and in good condition, free of weeds, debris and differed repairs. Getting relevant data prepared is also an important part of the process otherwise it can disrupt crucial deal momentum. In addition, buyers need to know whether they’re getting personal property and equipment or if the Seller plans to keep any assets. Is the new owner getting the rights to this year’s crop? Will they have the rights to the vineyard name or brand as well?
It’s crucial to be prepared and have a good team of professionals including an experienced real estate broker and accountant.
