Posted: Tuesday, April 11, 2023
Author: Vinny Delgado, Partner, Ranch Sales | Licensed in MT
Dear Vinny –
My partner and I own a large ranch. We are thinking of putting it into a conservation easement. Do you know if this will affect the value of the property? We don’t want to sell it soon, but we also don’t want to bring down the value if we decide to sell in the future.
- Having reservations about conservation easements
Dear Conservation Easement Reservations,
Conservation easements can undoubtedly impact the value of your property if they are not well thought out or are too cumbersome for the next owner. Of course, the more restrictive you make a conservation easement, the more value you will capture by placing the property in that easement. That being said, when it comes time to sell, the value will be impacted. We deal with conservation easements almost daily. If you work with a trusted broker and attorney, they can help craft an easement that will have minimal impact on value when it comes time to sell. The key is to be forward-thinking and give the next owner enough freedom in the easement so they still have the opportunity to make the ranch their own. Otherwise, they may feel stuck with what is on the ranch because of an easement placed by previous owners.
