5 Important Things To Consider When Making An Offer On Rural Land
Most people who want to own land tell a story about what drives them to make a purchase. Maybe you’ve spent hours in the woods with your grandfather as a youngster, hunting or fishing. Or, maybe you enjoyed a cabin where your family shared Thanksgiving lunch. Or maybe—just maybe—you’ve been leasing property to hunt on and you’ve had enough. You want to do it your way. No matter the reason, Southwest Georgia Farm Credit can help. Here are five things to consider as you get ready to make an offer.
First, things first— That age-old question…can I afford it? Buying land requires a down payment—typically 20 percent or more. You can finance the property for as many as 20 years, so being able to make the monthly payment is what you need to consider. You might also want to check your credit report, just to be sure you have everything in order. We also recommend getting pre-approved before you start looking for your ideal tract. Knowing how much you can afford will save you time, and money.
Get pre-approved before you start looking for your ideal tract.
Next, be sure you understand how you want to use the property. While you might be using it for weekend hunting now, five years from now will you want to build a cabin? Will you need access to utilities? Gas? Getting a survey, understanding if there are any easements or access issues will help you not only better understand the property’s value (and help your ability to get a loan), but could prevent any zoning problems down the road.
Thirdly, you’ve heard this age old adage: location, location, location. Access to critical infrastructure—good roads, major highways, healthcare, schools, etc., is really important when considering the highest and best use of the property. All in all, these things typically add value.
And, with that, a fourth item to consider. Can your property generate cash flow? In other words, are there ways to create income—either through timber value, or other uses, such as leasing out a portion for hunting or farming?
Perhaps most importantly, what is land selling for where you want to buy? Have you looked at comparable sales in the area? If not, talk with a knowledgeable real estate expert or licensed appraiser to understand the property’s value.
Ready to talk about financing? Email us and we’ll get you started today.