Written by Gurjit Ghai, REALTOR®
Rexara Realty Inc.·Published: September 7, 2026·Buying Farmland
A farm appraisal can be worth the cost before you remove subjects, because an independent agricultural appraiser values the land, the improvements, and the farm's productive capacity using comparable farm sales, not residential metrics. Lenders often require one for an agricultural mortgage, so it may not be optional, but even when it is, it protects you from overpaying.
The appraisal also surfaces issues the asking price may not reflect, like a soil class lower than advertised, a water licence that is too small for the crop, or deferred maintenance on farm buildings. On a high-value farm, the appraisal cost is small compared to the price, and the findings can support a renegotiation or a walk-away.
I recommend treating the appraisal as a due-diligence step on any significant farm purchase, and not just a lender formality. Read our Farm Valuation and Due Diligence guides for the framework, and I help clients build it into the subject-removal timeline so the valuation is done before the offer goes firm.
Important: This answer is general professional guidance for educational purposes and is not legal, tax, financial or regulatory advice. ALR rules, water licensing, zoning and farm-classification requirements can change and depend on your specific property. Always verify with the relevant BC authorities and qualified professionals before making decisions.
Gurjit Ghai, REALTOR®
Personal Real Estate Corporation
Brokerage: Rexara Realty Inc.
Gurjit Ghai is a BC real estate professional specializing in agricultural land, ALR properties, and farm operations across British Columbia. He helps buyers and sellers navigate water rights, soil capability, farm classification, and the unique due diligence that farmland transactions require.