Rural and lifestyle property valuations

On rural property, the land is usually the asset

The instinct on a residential valuation is to start with the house. On a rural holding that is often the smallest component of value. A 40-hectare property with a modest cottage can be worth several times a comparable house on a suburban block, and almost none of that difference is in the dwelling.

So the assessment starts with the land: its area, soil quality, topography, carrying capacity and productive use. The dwelling and improvements are assessed after, and are worth what the market pays for them in that setting — not what they cost to build.

Water entitlements and access

In Victoria, water can be a separate and substantial component of value, and it does not always travel with the land. Entitlements, licences, allocations, dam capacity, bore access and river frontage all need to be identified, verified and treated correctly in the report.

This is the single most common place a generic valuation goes wrong on a rural property — either by ignoring water altogether, or by assuming an entitlement transfers when it does not.

What we assess on a rural holding

• Total area, arable area, soil type and topography
• Carrying capacity and current productive use
• Water entitlements, licences, dams, bores and natural water access
• Fencing, laneways, yards and internal access
• Sheds, silos, machinery housing and other infrastructure
• The dwelling and any secondary residences
• Zoning, overlays and any restrictions on use or subdivision

Thin sales evidence, and how we handle it

Rural markets transact infrequently, and no two holdings are alike. Rather than pretend to a precision the evidence cannot support, the report widens the search area, states which sales were relied on and why, sets out the adjustments made, and explains the reasoning. A rural valuation that shows its working is far more defensible than one that presents a number as self-evident.