Land-Buying Guide

Assess your current financial situation and be sure to consider the costs associated with ongoing maintenance and improvements, landscaping, real estate taxes, upkeep of roads, etc.

Decide what you want to use the land for in order to identify the area with the best soil, water availability, topography, and climate to support that use. Do your research about the area. Consider demographics, proximity to major cities, and other key factors. Determining your priorities is important when choosing the perfect location for your property.

Find a local Realtor who knows the market, comparable sales, and the history of area properties. Get pre-approved using a local lender who understands the nuances of rural financing. You’ll gain access to expert knowledge that comes with a pre-established  network of professionals who may be helpful down the line.

Structures such as barns, cabins, etc. can be costly to build or remove from a property, so pay attention to what comes with the land. Also, unlike residential properties in suburban areas, access to water, electricity, cable, internet, and phone lines is not guaranteed. Make sure you understand what already exists on the property and what the costs would be to set up any utilities that you’d need. Finally, consider issues such as road maintenance, trash collection, and school bus routes.

Research land use and restrictions, or lack thereof, on neighboring tracts. You may discover a proposed highway or commercial land development is in the works just next door, or that city codes and restrictions designate what you can and can’t do or have on your property. Finally, the presence of endangered species or wetlands may lead to increased regulations. 

In addition to land use restrictions, you will also want to verify ownership of the property and identify easements. Difficulties can arise when several individuals own undivided interests, as you have to negotiate with multiple landowners who may not always agree. If you decide to make an offer on a property with multiple owners, your agent will be a valuable resource for negotiations.

Existing leases on the property may remain in effect even after you become the owner. Make sure you get information about any existing leases and understand their effects. It will also be beneficial to explore various options for property tax relief. Some agricultural leases support Ag-use tax exemptions, so you may want to try to maintain existing relationships.

Once you have honed in on the right property, work with your agent to come up with a plan for making an offer. There are many things to consider once you reach this point, and your agent is trained to help you navigate legal procedures and deadlines to ensure a smooth process.

Once your offer is accepted, your agent will walk you through all necessary paperwork needed to close. On closing day, the buyer, seller, agents or attorneys and closing agents from the lender or title company meet at the scheduled closing. The buyer and seller sign the applicable documents to agree to the terms of the financing and sale of the land.

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