Things To Consider When Looking For Land

This month we are going to be diving deep into budgeting for a homestead.  One of the first steps to budgeting for a homestead is having a homestead - so we are going to share some things we wished we had known prior to purchasing out land.

If only it were as simple as finding a house on a few acres and signing the dotted line…

Unfortunately, there are many details that aren’t common knowledge when it comes to buying land, and we want to highlight some of those here to help you out if you’re on the hunt, or if you find yourself on the hunt in the future!

When looking for a property, here are 12 things that Jason and I consider important details:

1. Does it have a well or septic already?

If the property has these two, it’s and added bonus in our books.  Adding a well and septic system is very pricey.  You’re likely looking at an additional $20,000 or more to have a well dug and a septic system put in (depending on the size of the house).

One thing worth noting with a septic system is even if there is an existing system, have it checked on the home inspection.  Try your best to get your hands on any maintenance records for the septic tank. These records will let you know how often the tank has been pumped out and inspected. Ours wasn’t thoroughly checked prior to us moving in (we didn’t know to request it and our realtor didn’t help us out there) so we were surprised to find out that there was a tree root that had grown into the septic system, causing us to have to install a brand new system as soon as we moved in.  That’s not the way we wanted to spend a big chunk of money when we moved to the farm. Trees should not be near septic systems… if they are, be mindful of their root system and get it checked out prior to signing the dotted line.

Another noteworthy thing with the well is to check and see what kind of well has been dug.  Wells can be dug to different depths. Shallow wells are susceptible to surface contamination which can lead to harmful bacteria in the water.  You can have preexisting wells checked on the home inspection as well, and I encourage you do!  You can also have the water tested to see what is in your water.

2. What does the property’s water table look like?

Knowing the water table of the property will tell you where the low lying areas are that are more susceptible to flooding.  This information is public knowledge and can be found often times on the property appraisers website via parcel numbers or address. Being able to look this up prior to walking the property will give you a good indication on if the land is going to be usable for the purposes you’re wanting to use it for!

If possible, check out the property while it is raining.  That will give you a good visual on water drainage for that piece of land as well as any possible concerning features of the layout.

3. Does the property have wetlands?

On a similar note to the water table, it’s important to know if your future property has any wetlands on it.  Wetlands are considered illegal to touch and must be left alone. Now, there are work arounds and you can contact your local government to confirm - but most wetlands can be raised and used as land if you purchase an equal amount of wetlands somewhere else.  I don’t know all the details on that one, but it’s worth looking into.  Basically - if you see wetlands, know that will be left as is on the property so don’t work it into your rotational grazing plans!

4. Is your property part of an HOA or does it have covenants?

If you’re looking to have animals, your property is going to need to be zoned AG (or agriculture).  If the land you’re looking at isn’t zoned appropriately, it’s not the end of the world, but it does mean you will have to jump through hoops on the local government level.  You’ll have to propose a change to your parcel via your county commissioners office and get approved for a land change.  This will likely include discussion meetings open to the public where your future neighbors will have a say on if they are for or against your decision and you will be granted (or not granted) permission based on those hearings. You can talk to the county commissioner office prior to purchasing the land to ask any questions you may have.  They likely know the area well and can assist you.

5. How do property taxes work in your area?

This is something worth considering as well, especially since the size of your land will likely affect your property taxes.  Another thing that we learned (that may or may not apply to you) is that in our area, your taxes are increased based on any concrete you lay. We are able to have our barn with no concrete flooring not effect our taxes, but if we added concrete flooring, all of that would go up. These rules vary by town to town, so it’s worth looking into.

6. What requires a permit where you’re looking to live?

Permitting is something that can delay projects from being built. It’s important to know if you’re required to permit all of the structures you’re building or just some of them.  For us, we can build poll barns all day every day without a permit.  That’s great news! It gives us the freedom to build as we like.  You can learn all about your county’s requirements via the county commissioners office as well.

If you’re considering a house build, you need to research that particular area and set realistic expectation on your build.  Many contractors don’t like working in rural areas and are harder to come by. There are many projects that we’ve seen done for friends in the country take weeks and even months longer than we know them to be completed in the city due to a smaller permitting office and less staff to cover the needs of the rural area.

7. What was the land previously used for?

Knowing the land’s condition will set you up to be able to identify how you can work the land or if it’s worth investing in.  If your desired property has been sprayed with toxic chemicals and you’re conscious about what you use to grow the food you’re eating, you will likely choose another property or budget to invest in raised garden beds + fresh soil.  These considerations may seem small, but the right property can save you a lot of headache and money in the long run.

Beware of the “perfect” looking lawns… pretty doesn’t mean healthy.

8. Does the property have fencing for animals or is that something you’re going to have to add?

A property that already has fencing is worth its weight in gold! Not only is building a fence expensive but it takes a lot of time to do so.  If you’re wanting to start with animals right away, having fencing is a huge money saver and bonus.

9. Does your property have a water source - better yet, is it a flowing water source?

Having access to water on your property is a huge bonus. Water helps your to be more self sufficient.  Running water is even more beneficial.  This will supply your homestead with water regardless of circumstance and could also provide you with a source of power via a watermill.  Questions to consider are is your water source man made or natural.  It’s also beneficial to know if your water source is spring fed or fed by any other natural water ways.

A stocked fish pond is another added bonus on a property. An existing and successfully functioning ecosystem like a stocked pond is a tell tale sign that something is going right.

10. Is there more land around you that is vacant or could become vacant?

One thing we’ve learned is that once you have land, you’re going to want more of it! Land is such a valuable tool, and once you learn how to utilize it to work together for the homestead’s benefit - you’ll likely be itching to expand your fence line. With that being said, note what the land around you looks like. Is it a bunch of houses or wide open woods? Considering the homestead’s future potential is something that is super valuable before you purchase the land.

Even if the land isn’t directly next to your potential property, it’s still worth keeping in mind for future use. Another consideration on those lines is that you may not have the funds to purchase that land outright, but you may be able to establish a relationship with the owner of the land and lease the property out for a mutually beneficial arrangement to manage their land with your animals while they are not utilizing the property.

11. How will you be purchasing this land?

If you’re purchasing land without a dwelling on it, you have a couple of options for purchasing. First, you could purchase with cash and own the land.  Second, you could take out a land loan. And third, you could be leasing the land from the owner with a predetermined lease to own circumstance/option. If you’re taking out a land loan, be mindful of the interest rates and payback timeframe. Most land loans are short term which makes the monthly payments a lot higher than people plan for.

If the land you’re purchasing has a house on it already, you can purchase with cash or utilize a loan.  There are VA loans that require zero dollars down, loans that require a certain percentage down upon purchase, lease to own options, or construction loans that allow you to take out additional money to fix the house up if it’s needing a lot of repairs.  There are even some programs set up for first time homebuyers that can help decrease the downpayment needed and save money on closing costs.