Appraisal types
Farm Appraisals
Get a fair, accurate value for your property from appraisal experts who know the land and its market.
$624m in farm and agricultural property appraised
Mason Spurgeon and the team understand farm reporting, land valuation, and the unique factors that affect agricultural properties, including FSA/CCC reimbursement and USDA agency requirements.
WHAT WE cover
Types of Farm properties appraised
Tillable Farmland
Pasture Ground
Wooded Ground
Improved Farms
Hog Facilities
Poultry Facilities
Cattle Facilities
Grain Facilities
CRP Ground
WRP (Wetlands)
Common reasons
Why Clients get a FARM appraisal
Estate Planning & Taxes
2032A Value
Gift Planning
1031 Exchange
Partnership Dissolution
Loans & Financing
Estate Planning & Taxes
An appraisal is crucial for estate planning as well as valuation for tax purposes. It is always best to have an accurate and up-to-date appraisal when any property is involved.
Having a current appraisal helps you keep better track of your financial assets rather than estimating from an outdated appraised value. Properties can often increase in value, and they can decrease just as easily.
Estate Planning
For estate planning, appraisals can help determine the values of assets. This knowledge is indispensable for heirs if properties and assets need to be gifted or divided after a death.
Keeping an up-to-date appraisal on file is also handy when determining the increase of property value as well as growth or loss margins. Being able to see steady growth or loss over time can help determine proper selling and buying values for good investment opportunities.
Estate Taxes
Appraisals are also helpful for estate tax purposes. Having an accurate appraisal can help in the case of a tax audit. Many privately owned businesses are required by the IRS to have an appraisal for determining values if claimed on tax returns.
Appraisal costs are often tax deductible, so check with your tax preparer to determine if that works in your situation.
2032A Value
What Is a 2032A?
A 2032A is used to save money on taxes when valuing farmland, by establishing its value significantly below market value.
This form of valuation is used often with the ownership of family farms which will pass to another member of the family.
What Qualifies for a 2032A?
The farm must have been owned by the same person for eight years and the property must be transferring to a family member of the current owner. The new owner must also own the property for ten years and use the property for the same purposes as the prior owner.
Example
For example, you could benefit from a 2032A value if your grandfather owned the family farm for twenty years and decided to pass it along to you as a grandchild. To comply with the valuation of a 2032A you must own the property for the following ten years and continue to use the land as farmland as your grandfather used it.
How the Value Is Calculated
The valuation is calculated based upon comparison of other farmland cash rent prices in the same vicinity, then annual state and local real-estate taxes are deducted, and that net income is then divided by the average annual effective interest rate of all new Federal Land Bank loans.
Potential Drawback
The difference between the actual market value and the 2032A value is what can be recaptured in a lien by the IRS, if conditions are not met.
2032A values can be a bit confusing and not entirely beneficial in the long run for the acquiring parties, because of the many factors involved.
Gift Planning
Is an Appraisal Needed?
It depends on what the gift is. If you plan on gifting any form of real estate, an appraisal is crucial.
Very similar to when selling a property, you will need an appraisal to accurately determine the value of the property you are gifting.
The Main Reason for an Appraisal
An appraisal is also needed for tax purposes in gifting real estate. It can be used as a charitable gift and can be tax-exempt so you can write it off your taxes owed. But in order to properly valuate the gift, an official appraisal is needed.
Who Should Complete the Appraisal?
Oftentimes it is beneficial to have your appraisal done by an independent appraisal service, such as Spurgeon Appraisals, that is not directly in business with either the party giving the gift or the charity receiving the gift. The appraiser can give an unbiased opinion of value.
1031 Exchange
What Is a 1031 Exchange?
A 1031 Exchange is a like-kind exchange that allows you to exchange property used for investment or in your trade or business, for other property to be used for the same purposes.
What Is Allowed by the IRS
Section 1031 of the Internal Revenue Code provides an exception that allows you to defer payment of capital gains taxes when you sell business or investment property if you reinvest the proceeds in similar property through a like-kind exchange—which is the purpose of the 1031 Exchange.
How to Qualify
To qualify for a 1031 Exchange, you must “trade up” for a property that is equal or higher than the sale price of the first property.
Reverse Exchange
According to the IRS, a “reverse exchange” is somewhat more complex than a “deferred exchange.” It involves the acquisition of replacement property through an exchange accommodation titleholder, with whom it is parked for no more than 180 days.
During this parking period, the taxpayer disposes of its relinquished property to close the exchange. All the proceeds made during the property sale must be put toward a down payment on the replacement property.
Excluded Property Types
The IRS states that certain types of property are specifically excluded from Section 1031 treatment. Section 1031 does not apply to exchanges of:
- Inventory or stock in trade
- Stocks, bonds, or notes
- Other securities or debt
- Partnership interests
- Certificates of trust
Partnership Dissolution
When Does a Dissolution Occur?
Often when businesses or companies are owned by more than one party, a dissolution may occur.
One party may retire or perhaps part ways from the business or company. This leaves the business in dissolution.
What Has to Be Done?
The dissolution requires the parties to assess the value of the business to best determine how to split the assets.
Why Get an Appraisal?
An appraisal will give an accurate and unbiased value of the building, land, and other real property. That way either the staying partner can buy out the leaving partner’s part of the business, or the property can be divided and distributed as necessary in case of a business closure.
Court Proceedings
If a court of law is involved, having an appraisal will be helpful for the judge to make a decision, and the appraisal may remove roadblocks that arise during the proceedings.
Loans & Financing
Mortgage lenders, banks, and other financial companies prefer an up-to-date real-estate appraisal before approving any loan to purchase. It is a safety net for the lender to make sure that, if the loan goes into foreclosure, they can sell the property for the right amount to cover the loan.
A financial institution will not approve a property loan if the loan amount is higher than the value of the home, land, farm, or commercial building.
If you are in the market to buy, know that you will need an appraisal.
Give us a call today and we can answer any questions you may have. Your lender will most likely need to order the appraisal themselves, but you can still refer them to us.
We already service most of the lenders in our coverage area, so getting an appraisal for lending and financing should be easy for you.
CLIENT RESULTS
The most 5-star Google reviews from our clients
Thank you for the job you did for us in appraising the farm ground that our family recently inherited from our parents’ estate.
David B.
★★★★★Extraordinary experience with the team at Spurgeon. We had a severe deadline for end of year, as well as having to redefine the project multiple times. Spurgeon was willing to help, meet the deadline in spite of a few delays on our end, and gave me great advice on how to solve some problems with deeds, attorneys and taxes. I rarely have encountered such excellence in quality in both the product (appraisal) as well as customer service.
Google ReviewMason was very responsive to our needs and provided solid details on multiple properties, which we used and came out almost exactly as he indicated (3 were auctions). Our thanks for the help!
Google ReviewWe are very pleased with the services of Spurgeon Appraisals…definitely use their services again.
Deb F.
★★★★★Mason and Stan at Spurgeon Appraisals recently assisted my family in a valuation of our property in Northern Missouri. The appraisal was well supported and presented timely. I chose Spurgeon because of their expertise in land/farm appraisals as well as their work for several local financial institutions in the area and recommend their services.
Google ReviewWe had the Spurgeon’s work on a farm split for our family. So far they have made the process as painless as possible. Everyone we have dealt with there has been kind and knowledgeable. They helped us expedite the process as much as possible. My husband and I would recommend this business to anyone who need an experienced firm that knows how to get things done.
Google ReviewSpurgeon Appraisals did a great job working with us on a family farm property. We were pretty inexperienced about the whole process, especially with farm property. There were several issues involved in the sales transaction that required more information that the owner himself (Mason) stepped in and helped us with. He even communicated with the title company on our behalf to make sure he was getting accurate information. I would definitely recommend them for property appraisal needs.
John B.
★★★★★I would like to take this opportunity to thank you for the job you did for us in appraising the farm ground that our family recently inherited from our parents’ estate. In looking into getting the appraisals completed, we had multiple sources recommend Spurgeon Appraisals. We did obtain additional quotes from other agencies; but even though your quote wasn’t the cheapest, we decided to go with Spurgeon Appraisals based on the opinions we received from others. We were very pleased with the professionalism, timely communication and responses to our many questions. Thanks for a very thorough job and timely delivery of the appraisals.
Google ReviewAfter calling 7 or 8 farm appraisers with little response I contacted Spurgeon Appraisals through their on line contact and appraisal quote program. They were extremely responsive. They contacted me quickly and we had an appraisal quote that day. Their office is very customer friendly. We signed a contract with them that day for our appraisal and they got to us quicker than we expected knowing how busy they were at the time. The appraisal was very professionally done. I will be using them again in the future. I highly recommend.
Jeff G.
★★★★★Options
Turn times to fit your needs
Rush
1 Week
- Delivered within a week
- Priority scheduling
- Unbelievable? Let us show you.
Standard
2–3 Weeks
- Delivered within 3 weeks
- This is our typical delivery time
- Fits most lending & legal deadlines
Flexible
4–5 Weeks
- Delivered within 5 weeks
- Best price if you’re not in a rush
- Great for planning & estate work
FREQUENTLY ASKED QUESTIONS
Anything you need to know about Farm appraisals
A farm or land appraisal is an unbiased, professional opinion of the value of agricultural property. It considers soil quality, acreage, improvements, income potential, and comparable sales to support lending, estate planning, and transactions.
Your farm / land appraisal will be performed by one of our specialized professionals. Our certified appraisers have expertise in appraising the value of rural properties, whether they're for farming, development, or other purposes.
Yes, our appraisers will provide you with a detailed written report that documents their value methodology, the property's characteristics, comparable sales data, and the final determination of your properties value. An electronic copy (PDF format) of your land appraisal will be emailed to you immediately after it is completed. This is to ensure that you get the information you need as fast as possible. In addition, you can request a paper copy of your farm appraisal report mailed to you for an additional fee.
These types of appraisals focus specifically on agricultural properties, considering factors like soil quality, potential uses, and income from farming operations. Other types of property appraisals may have different considerations, such as residential or commercial properties.
Yes, we complete several 100 farm appraisals a year for estate purposes. We are very familiar with the IRS appraisal requirements.
To know exactly how much your land or farm appraisal will cost please fill out our online bid form and have a bid sent directly to your inbox, or you could check out our farm appraisal pricing page. This will give you a good idea of what we charge without having to contact us.
The duration of a farm or land appraisal can vary depending on factors such as property size, complexity, and data availability. However, if you need it quickly our large staff can get it done. Please see our Turnaround Time page for more information.
Our farm appraisers consider various factors, including the property's size, location, soil quality, topography, physical access, access to utilities, zoning regulations, potential for development or agricultural use, and recent sales of comparable properties in the area.
Yes, appraisers are subject to government regulations and industry standards, such as those set forth by the Uniform Standards of Professional Appraisal Practice (USPAP) in the United States. These standards ensure professionalism, objectivity, and ethical conduct in the appraisal process.
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