Buying a ranch property is considerably different than buying a single-family home in the suburbs. There are many more questions that need to be asked before moving forward.
1. Easements: When you have a large, continuous plot of land, there is a possibility that easements exist. While not a deal-breaker, it is important to know if any easements exist on the property. An easement is simply a written document allowing someone, like the utility company or an adjoining parcel owner, to cross over your land.
2. Utilities: Chances are high that your interest in ranch property includes a desire to be in a rural area that is not too rural. Make sure you are not so remote that you do not have access to utilities.
3. Zoning: While most rural acreage is zoned agricultural, it is always important to ask exactly how the prospective parcel of land is zoned. Some municipalities have rural zoning that prevents barns higher than 30 feet or limits the number of farm animals per acre. Make sure the zoning fits in with your future goals for the property.
4. Environmental Hazards: Read the seller's disclosure statements and do your due diligence to ensure that there are no reported environmental hazards on the land.
5. Perc Test: A perc test, or percolation test, is a test performed on a rural piece of land to determine if the soil drains well enough for a septic field. If the land fails, you will need to install an engineered septic field instead. This is not a deal-breaker, but it is helpful to know about the additional expense before buying the ranch property.
6. Access: You need to verify how you will access the property. While many ranch properties are accessible from the main road, some only have access via easements over the neighbor's property. Ask your real estate agent for a copy of that recorded easement for your records. In this day and age, you cannot always rely on just a verbal agreement or a handshake.
7. Use Restrictions: Check with local ordinances about how you are allowed to use the property. Like zoning, some municipalities can restrict how you use the property. You may not be allowed to hunt or cut down trees if it is located in a conservation area, for example.
8. Future Development: Be sure to ask both the seller and the county about any future development plans in the area surrounding the ranch property. You do not want to buy land only to realize that a six-lane freeway will soon be going right through it.
Buying a ranch property should not be a quick decision. Asking the right questions can help you reach that decision efficiently.
For more information or to look at ranch property listings, contact a real estate agent.
Share14 December 2019
Once I paid of the mortgage on my house, I decided I wanted to buy an investment property. I had no idea that the buying process would be different, but it really was. There were so many things to consider that I hadn't thought about, and even the loan application process was different. It occurred to me that if I didn't know about it, others likely didn't either. I built this site to help others see what I went through buying my first investment home. I hope that it helps you to approach the process with more confidence and understanding.
