When you start browsing Colorado ranches for sale, it can be difficult to pinpoint exactly what makes one ranch more valuable than another. Naturally, you want to make a wise investment, but how do you know if it’s better to have priority water rights or new corrals? To save you the trouble of wondering, here are some valuable features in Colorado ranches that you should look for.
Water and Mineral Rights
Whether you’re ranching or farming your land, water is a necessity. That said, even if you have a creek or stream on your property, you may not be allowed to use the water in it depending on your water rights. Water rights explain how water from a source is diverted and used by all property owners along that source. Typically, you are only permitted to use a certain number of shares, so ask your real estate broker about a property’s water rights.
Like water rights, mineral rights can be owned separately from the land. For instance, Colorado is known for crude oil, natural gas, gold, silver, and coal. Private entities may own the mineral rights to huge amounts of land to obtain these resources. Depending on your land, owning the mineral rights can make it much more valuable.
Proximity to Public Land
Proximity to public land and recreational amenities gives you more opportunities to enjoy a location. Future buyers or renters see this as a value-add too. Land that borders a National Forest, National Park, Bureau of Land Management land, state land, and local wilderness areas is incredibly valuable. If you live in an area where recreation is commonplace, you should also look for land nearby like amenities, such as a ski resort, golf course, or hiking trails.
Income Production Opportunities
If you’re purchasing a ranch, you most likely want to make income from agricultural production or by leasing these functions to other local ranchers. Keep an eye out for Colorado ranches that already have resources in place, like working corrals, perimeter fencing, and irrigated pastures.
Some land has built-in conservation value to protect natural amenities, ecosystems, and wildlife. If your land meets certain qualifications, you can apply for a conservation easement to restrict the land’s use to protect it and receive tax credits in return. Optional credits and benefits include:
- Federal income tax breaks
- Colorado conservation easement tax credits
- Real estate ad valorem tax breaks
- Family heritage preservation
- Land value increases
Find a Broker Who Specializes in Colorado Ranches For Sale
Water rights, proximity to recreational opportunities, and conservation value are three of the most important components of Colorado ranches for sale. These features add value for buyers, sellers, and even renters or users of the land. As vital as it is to look for these components in your ranch property, it’s critical to find the right broker who can help you prioritize the features best align with your goals. If you’re looking to buy or sell a ranch property in Colorado, I’d love to be that broker for you. To learn more about working together, contact me below.