True Value of Land
The following is a reprint from Field Sport Concepts, Ltd. affiliate Ed Belak, founder of Global Sporting Advisors, LLC (www.globalsportingadvisors.us). It highlights GSA’s approach to land valuation associated with hunting and angling real estate as well as hunting and fishing lodge businesses while supporting Field Sport Concepts’ assertion that planning for recreational land-use brings added value to rural lands.
In America some ranch brokers and realtors tend to sell sporting properties by the acre based on “comparable sales” with little regard for the “real property” — the rights and privileges associated with the ownership or lease of real estate. In terms of hunting or angling real estate, the right to pursue, within legal means, the fish or game on that land affects the value of the “real property”. It is additive to the value of the real estate and its improvements (buildings, roads, bridges) and provides the truest value of a particular piece of land.
What is important to note is that the quality of the right to pursue is influenced by the wildlife or fisheries management afforded the raw land, stream, lake or river. And unless a river is in its natural pristine state– say a beautiful brook trout river in Labrador producing 8-pound wild native brook trout, most land that is actively managed for wildlife or fish is worth more than land that is not managed. For example, a well-managed grouse moor in the UK is worth more than an unmanaged moor because it produces more brace of wild grouse. A section of Michigan Northwoods that is small block clear cut to provide edge and various ages of aspen is worth more because it will produce more wild ruffed grouse than unmanaged land. A trout stream that is enhanced by bank stabilization, rock placement and narrowing the surface to volume ratio will produce more trout than a stream that is left to wander all over its floodplain.
GSA is unique in its approach in valuing the quality of the real property associated with hunting and angling real estate, or with a hunting or fishing lodge business. The approach creates educated buyers and sellers and can also be applied to buy side assignments (how much should I really pay for that land, or business?) or sell side assignments (what is my property or business really worth and why?)
That is the gist of the GSA approach.
For more information contact Ed Belak (firstname.lastname@example.org) at Global Sporting Advisors or Robert McKee (email@example.com) at Field Sport Concepts.