by Gayle on December 15, 2011
The Wall Street Journal just ran an article about the Fuzzy Math of Internet Home Values. The article says that online home valuators have in their disclaimers that their valuations are just estimates and may be off anywhere between 20 and 50 percent in either direction. The article goes on to say that in some locales the estimates have been off as much as 82%.
The estimates are based on computer models using the figures from county assessments, which in Virginia can be up to six years old, as well as recent sales in the area.
With country properties, particularly those with any amount of acreage, these models do not work at all. Just a few weeks ago, I looked at the automatic valuation of one of my listings. The property has 30 acres of good pasture and hay land, a historic three bedroom home with gourmet kitchen and complete equestrian facilities. The Automated Valuation had this particular property priced at $137,000! Needless to say, I have removed all of my listings from this site. The automated valuations may be a little more reliable in cookie-cutter subdivisions where all the sales are of “like” properties. Country properties are unique and no computer model will ever be able to generate a true valuation of these properties.
by Gayle on November 19, 2011
If you buy a farm in the Charlottesville, Virginia area, what kind of return can you expect to achieve if you don’t want to farm it yourself, but want to lease it out to a local farmer? Most of the Charlottesville area farm land is best suited for cattle and some row crops. The United States Department of Agriculture National Agricultural Statistics Service (NASS) surveys land owners and farmers each year to determine what the current rates are for leasing farm land. As with anything, supply and demand dictate the price.
There are also many variables that are not accounted for in these statistics. For example, does the land owner or the lessee pay for fencing costs, fertilizer and so forth. Generally for long term leases, the lessee pays these expenses but are usually unwilling to absorb them if the lease is annual or less.
According to the NASS, the 2010 rates for central Virginia were:
|
County
|
Crop Land Rental Rate $/ac
|
Pasture Land Rental Rate $/ac
|
|
Albemarle
|
$31/ac
|
$18.5/ac
|
|
Amherst
|
$17/ac
|
$15/ac
|
|
Augusta
|
$40.5/ac
|
$28/ac
|
|
Buckingham
|
$19.5/ac
|
$16/ac
|
|
Culpeper
|
$25.5/ac
|
$11/ac
|
|
Fluvanna
|
$26.5/ac
|
$16/ac
|
|
Greene
|
$25/ac
|
$16.5/ac
|
|
Louisa
|
$24.5/ac
|
$17.5/ac
|
|
Madison
|
$30.5/ac
|
$15/ac
|
|
Nelson
|
$28.5/ac
|
$12/ac
|
|
Orange
|
$36/ac
|
$26.5/ac
|
Here are the farm rental rates for all Virginia counties.
The Wall Street Journal just ran an article about the Fuzzy Math of Internet Home Values. The article says that online home valuators have in their disclaimers that their valuations are just estimates and may be off anywhere between 20 and 50 percent in either direction. The article goes on to say that in some locales the estimates have been off as much as 82%.
