Land Buying Tip: Practical Advice for First-Time buyers  


Whom should I hire to help me locate the land that I want?

TIP #1 – FIND A BROKER/AGENT THAT’S EXPERIENCED INLAND, RATHER THAN THOSE WHO ARE RESIDENTIAL REALTORS.

A professional land broker will be familiar with the many differences between home-buying or land-buying. They will be able and competent to interpret aerial maps and to show the land to you.

 

TIP #2: CONTACT A REAL ESTATE ATTORNEY

An attorney with experience in tulum mexico land for sale in the area you are interested in buying land in can help you with everything from making an offer with all the right contingencies to ensuring that there are no title clouds or zoning problems to prevent you from using it the way you want.

“It can cost as high as $2,000, which may seem expensive, but it is very affordable next to what you may spend for land and, in end, may help you save a great deal,” John Weidenhaft who works for Raydient places + Properties told us in our article Don’t forget the Rookie: 5 Tips to Buy Rural Land in The South.

How many acres of land do I need?

TIP #1 – FIRST, MAINTAIN A COMPLETE UNDERSTOOD OF THE SIZE OF AN ACRE.

Even those who have lived in a rural area their whole lives can be confused about what an “acre” looks like. To help you understand the size of an acre, we teamed up with our parent company. shows you how large an acre is. shows you how to compare it to other places. For example, a football field is one acre.

 

TIP #2: DECIDE WHAT USE YOU WANT FOR THE LAND AND RESEARCH RECOMMENDED ACREAGE FOR THAT PARTICULAR Land USE.

It’s difficult to find an expert who will tell you how many acres you need. There is a lot. Get very specific about what you want from the property. After having identified potential properties, figure out how that portion can be used to your benefit. For example, if you purchase land for a home but some of it is protected or wetlands then make sure that the ground is sufficient to support your home.

We know that you are interested in numbers so we talked with people who have acreage and shared their ideas about how many they need to make their plans come to fruition. Here are the links to each:

  •   Hobby farm and homestead

 

  •   Horses for boarding

 

  •   A market garden or CSA

 

  •   An outdoor retreat

 

  •   Raising cattle

 

  •   Recreational land and hunting land

 

How do I pay for a purchase of land?

 

TIP #1 – WORK WITH INSTITUTIONS THAT KNOW LAND

Although many traditional banks might refuse to lend money, loan providers who have access to land — such as agricultural credit institutions — are more likely than others to lend the funds you need. These institutions were created to help land buyers make the purchase process simpler, as well as simplify repayments.

“We can structure payments depending on the buyer. A farmer might buy 100 acres of land to raise cows. We can collect the payments either quarterly or annually, depending upon when the farmer is receiving his income from the cows. Marcus Boone is senior vice president and chief loan officer of Farm Credit of Florida. He spoke to us in our article How To Finance a Rural Land Purchase In the South.

TIP #2 – START SAVING MONEY & IMPROVING YOUR CREDIT SCORE EARLY BEFORE BUY

Your financial health is the most important step in land purchasing. You have a better chance of getting the loan that you need by having a high credit rating and a large cash reserve. This will show that you can repay your loan on time.

It’s a good idea, too, to save some cash for your downpayment.

What Type of Insurance Do I Need for Vacant Land?

 

TIP #1: GET TITLE INSURANCE

Title insurance is highly recommended for land that you do not have. This type of insurance helps clarify who owns the land, determines whether there are liens against it, and protects you against future claims.

“It’s important that title insurance doesn’t mean that title problems won’t occur (much as having car insurance doesn’t guarantee you won’t have an accident). The title insurance does offer some protection should you have to make an unanticipated claim. Keep in mind that fees for title research as well as for the insurance can be negotiable,” our eGuide 3 Steps to Buying Rural Land With Confidence.

TIP #2: GET LIABILITY INSURANCE

Even without a structure on the land, liability coverage can protect you from a sticky.

He said that liability situations can develop when you have large acreages. People could be hunting or riding four-wheelers around your property. While you might not realize they are doing it your liability could still be imposed. In our article What Insurance Do I Need for Raw Land, Brad Raulerson from Farm Bureau Insurance said that even though you might not know they are doing it, you can still be held responsible.

 

How do I know if I’m not purchasing a “bad property”?

TIP #1 – INVESTIGATE THE LOST’S HISTORY

It’s important to know the backstory of a property. Even a deed can go wrong. Make sure you have a title check done before you close the deal. Adam Godfrey suggests you have an environmental site analysis done to determine if past use has not affected your plans for the property. Don’t Purchase a Lemon.

TIP #2 – MAKE SURE THAT YOU CAN ACCESS IT

Access is even more important when selling land. No matter how beautiful the land is, you won’t be able to access it legally.

Public road frontage gives you the best access to your land. A deeded right of way is the second best. It allows you to cross any property to get to your land. Rick Bourne (a land agent with Southeastern Land Group) explains access types and shares tips to gain access to landlocked properties.

 

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