Things to know before purchasing property.
By: Whitetail Properties

Disclaimer: This is not financial, investment, or legal advice. Consult with licensed real estate, legal, and tax experts before making financial or investment decisions.

Buying land can be a stressful process, especially for first-time buyers. For those thinking about buying a hunting property, it pays to know the ins and outs of finding and purchasing farmland. Of course, learning how to buy a farm, and how to start a farm, are both significant processes. Real estate is a multifaceted arena and comprises much more than we can cover here. However, the following are some of the most important tips on buying a farm.

1. Analyze Your Finances

Anyone looking to buy hunting land should study their finances in detail. Determine if the budget to buy land is there, or not. Of course, there are other things to consider, too.

Do you have the cash savings to make an all-cash offer? If not, do you have enough saved for a down payment? If you do, is your credit score and financial health good enough to get a loan? These are important questions to ask. Only move forward with a purchase if everything looks good.

2. Study the Current Market

The current state of the real estate market should carry measurable influence in your decision-making. Gauge the current market to help determine whether now is a good, bad, or otherwise neutral time to buy. Of course, timing the bottom is nearly impossible. But if the market is at a top, and might turn downward, perhaps wait. The land market is so vast and varies so much, though, that individual deals might be better or worse than the overarching market. The most important factor? Gauge the deal you’re getting.

3. Set Realistic Expectations and Goals

Those seeking to buy land should set realistic expectations and goals. Search for properties that are within your target window. Of course, this requires analyzing personal finances, setting a budget, and following outlined parameters.

4. Find the Right Location

Location means more to some and less to others. If planning to live on the property, location definitely matters. If planning to be an absentee landowner on a piece of hunting or investment property, there’s more flexibility. Therefore, find the right location for your situation. Choose the state, region, and county (or counties) that work best for you.

Certainly, location matters for deer hunters. This can mean the difference in deer densities, buck age structures, genetic quality, hunting pressure, and more. For example, finding a piece of land adjacent to large tracts of land tends to be better than being amidst a lot of smaller tracts. (The latter tends to produce higher hunter numbers and hunting pressure.)

5. Decide By Auction or By Listing

Most buyers purchase land one of two ways. First, they attend an auction. Or, second, they find and buy a property via listing. Never decide solely on one or the other, though. Rather, use both avenues to find the best property for your budget and goals.

6. Choose the Right Real Estate Agent

When searching for the right hunting or rural real estate opportunity, it’s vital to choose the right real estate agent. Find one who is knowledgeable, respected, and understands the nuances of your land needs. Search for an Accredited Land Consultant who specializes in hunting properties to be sure you get expert guidance during the process.

7. Scour for Underpriced Land

The modern landscape of land sales showcases higher prices than recent decades. That doesn’t mean you can’t still find a good deal, though. Continue scouring for underpriced listings. Find available lands for sale that are at or below market value.

8. Choose the Right Type of Farm

There are many different types of properties. Hobby farms, working farms, and more, are available. Tillable versus timber, and other variations of land, are on the market. Search for those which exhibit the needed features.

9. Buy the “Right” Acreage (If Necessary)

Depending on goals, buying a certain acreage might be more vital. For example, if purchasing tillable ground to row crop, hitting a certain acreage is more important. If hoping to find a great hunting tract, that can be done with many different acreage totals. Therefore, due to many relevant variables (such as location), a smaller 50-acre tract might produce better results than a 250-acre parcel.

10. Inquire About Survey Recency

The property survey is important. It shows the accurate acreage, property boundaries, and legal descriptions. Ask for the most recent survey. If the seller produces one, study it. If they can’t, under most circumstances, it’s best to complete a survey before moving forward.

11. Determine What Restrictions Might Apply

Oftentimes, zoning impacts property usage. Buyers must determine if there are any restrictions on properties of interest. If zoning laws apply, decide if restrictions in place impact your intended use for the landscape. Furthermore, from a re-sell standpoint, decide how zoning laws impact current and future property values.

12. Evaluate Mineral Rights

Mineral rights are important. Air, oil, timber, water, and other rights can come with the property, or not. When studying the title search documentation, and other records for the property, evaluate the mineral rights status. If the land doesn’t come with mineral rights, determine if the price is fair given that important detail.

13. Study the Soil Quality

Soil quality impacts the flora and fauna that call it home. It impacts how well crops, trees, and even native plant species grow. Soil pH can impact what tree, shrub, and grass species exist in the area. Soil composition can even boost or limit the antler growth on a whitetail buck. Soil tests can help determine what you’re working with before buying.

14. Pick Through the Crop History

If the land has tillable acreage, and was previously or still is in production, study the crop history. The number of bushels per acre it produces varies year over year. This can be impacted by annual rainfall, soil changes, etc. That said, a sample size with multiple years can paint a clearer picture. If cropping the ground yourself, or sharing the profits with a hired or leasing farmer, a property that produces better yields helps everyone.

15. Check for Water Availability

Water sources don’t exist on every property. They do on many occasions, though. The presence of various water source types, such as creeks, rivers, ponds, etc., impact what you can or can’t do with a property. It also impacts value. So, check for water sources before buying. It might influence your decision or help decide if choosing between multiple properties.

16. Ask About Utilities

Ask about existing utilities, such as electric and water. Existing presence of utilities influences property value and attractiveness. If not already present, the ease and cost of installation plays a role. It’s much easier to take a water line 50 feet than 500, 1,000, or more.

17. Assess Flooding, Sinkholes, and Other Issues

Some areas flood. Others have a lot of sinkholes. Still, other land-centric issues arise, too. Assess the property and determine what, if any, risks come with it. This impacts use of the property, land value, and if it’s viable for intended purposes.

18. Study the Title Search

A good and clear title search should prelude any land purchase. This will be completed by the title company handling the closing. Of course, title insurance adds peace of mind, too. Ensuring there are no liens, problems with owners, or other issues, is a crucial step in the process.

19. Compare Properties of Interest to Comps and Have an Appraisal

Once serious about a property, it’s important to compare it to nearby comps. If priced well, and everything else checks out, perhaps move forward. If paying cash, have an appraisal at will. If financing, once under contract, most banks will conduct their own.

20. Pay Cash or Finance

Paying cash for the farm makes the process shorter. However, it also requires saving the money, or freeing up capital, to make the purchase. Therefore, if financing, ensure you qualify for the necessary sum. Meet with a bank loan officer, and obtain a pre-qualification letter, before going to a seller with an offer.

21. Check the Most Important Boxes

When purchasing land, most buyers have numerous requirements. Unfortunately, few if any tracts can check every box. That said, ensure the land that you buy checks the most important boxes. Whatever these might be, put them in order and find land that aligns with higher-ranked variables.

22. Weather the Storm (for a Good Deal)

Real estate deals can pose any number of challenges. If the deal is worth pursuing, continue onward, even if the process is challenging. In other words, weather the storm, especially if it’s a good deal. That might mean compromising certain things, such as agreeing to pay for a survey (rather than the seller), or some other small concession.

23. Get the Purchase Contract and Other Legal Documents Just Right

Words matter, and it’s important to get the purchase contract just right. The same is true for other legal documents, such as any necessary addendums, the deed at closing, etc. Make sure you’re aware of the verbiage. Of course, working with an experienced land agent, such as an Accredited Land Consultant, takes the worry out of this step.

And More

The above list isn’t nearly a complete or exhaustive outline. There are many other elements to buying land. Factor in hunting-specific nuances, and it’s even more complicated. Before jumping into the process, educate yourself on the details. Be realistic about finances, understand that all properties are unique, and recognize a good deal when you see it. Furthermore, just because a property doesn’t check every box, doesn’t mean it isn’t a good opportunity or investment. It just might help you reach current or future goals, and set you up for future success.