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Frequently Asked Questions:

What factors determine the market value of a farm property?

Many factors combine to determine the market value of a farm property and its market price. Some factors are quite subjective. In addition to basic market factors, owners may have another layer of considerations in setting the final price at a level that is not exactly in line with market value. For example, is the owner willing to sell for less than top market value? Is the sale taking place when real estate values are high or low? Is the owner in favor of what your operation will do, and in a position to give you a good deal? You may encounter these and other subjective factors that influence a property’s value (as reflected in its sale price).  (To learn more about land and market value, check out the Owning Farmland Lesson in our Acquiring Your Farm online tutorial.)

Posted in: Farm Seekers