![]() ![]() Visibly clear and easily navigable access close to creature comforts in a nice setting tends to be attractive. Location, location, location! Numerous factors make a great location including accessibility, desirability and usability. When supply outstrips demand, prices stabilize or fall. Market sales give us a snapshot of the battle between supply and demand. The scarcity of these premium quality varietals has pushed vineyard prices and grape prices to new highs. Premium Pinot Noir and Cabernet Sauvignon vineyards fall into this category. If a type of property is scarce and in demand, the price simply goes up. Scarcity really boils down to the age old drivers of commerce, supply and demand. As the economy expands or contracts, the real estate markets tend to follow suit. An improved economy also allows people to pursue their dreams of purchasing a vineyard, vineyard estate or winery. When the economy grows, consumers purchase higher priced wine keeping wine grape prices stable or increasing. All three segments have a direct effect on our region. The general economy, wine industry and Silicon Valley are key indicators in our local market. Is the property move-in ready? Is the land usable for additional improvements and agriculture? What is the zoning and do entitlements exist? Are the vines newly planted with disease resistant rootstock or were they planted in 1980 with AXR–1? Utility is a key factor in functional use. The condition of a vineyard is important as well. Condition takes into account if we are looking at new construction, a recently remodeled home or an A-Frame with vintage 1978 shag carpet. Quality can also reflect whether the vineyard / soil produces average or super premium grapes. Quality pertains to whether we are valuing a luxury estate, a charming farmhouse or a double wide trailer.
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