How to Buy Acreage
Buying acreage is a process that goes beyond finding a cute plot of land and snatching it up. Extensive planning is needed in order to ensure that you come out of the deal with your dream property and your wallet intact.
- Difficulty:
- Easy
Instructions
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Research
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1
Sit down and figure out what you want before you begin your search. Write down everything, including the function of the property--residential, industrial, primary residence--the distance from a municipality or how far away do you want to be and the amount of development that you intend to undertake whether having the land ready for building or heavily wooded.
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2
Go find your land, making a list of your top choices. Only consider those properties that meet your criteria. Don't waste your time on a property that you know will not suit your purpose.
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3
Hire an appraiser. Having the land appraised is the best way to find out just what you're are getting into. They do the same job as the home appraisers, even delving into wells, sewers and other underground properties. See the Resources section for more information.
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4
Gather an estimate of all expected expenses for your building project, including land purchase and preparation. Add an extra expense entitled "Anticipation" which will help cover any issues that may arise. To help with your anticipated expenses, see the resources section.
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5
Know your land. Have the land surveyed by a professional. Also, find out if there any easements, restrictions, or permits needed. Also look for zoning laws. All of these items will put a damper on your building plan later on.
Savvy Buying
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1
Get pre approved for your loan. Buying acreage is different than purchasing a home. The land isn't considered a primary residence and will warrant special financing. Getting pre-approved for the loan before initiating a purchase will save you precious time.
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2
Use contingencies as a safety net. Building contingencies into the purchase contract will help to safeguard your wallet against the unexpected. For example, if a sale is contingent on the buyer digging a sewer, then the buyer has to pay for repairing the gas line that the diggers hit in the process.
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3
Know your price. You have the appraisals and estimates. Do the numbers to be sure that the purchase price is adequate. Also be sure that the entire deal, the expenses and purchase price are well within your budget. Don't get in over your head before the ink dries on the contract.
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1
Tips & Warnings
Go to the tax assessor's office to find the owner of a property that isn't advertised for sale. Also look on the government surplus site listed in resources.
Your building expenses increase as you get farther from town. Make sure that your plot is worth the drive.
Undeveloped plots may seem cheap at first, however, you must consider the expenses required to prepare the land for your purposes.
