How do you buy land and what do you need to know when buying land? It is a process: The Land Purchase Process. You first need to answer a few questions about yourself and what your goals and objectives are.
Ask Yourself These Questions Before Searching for Land
- What is your budget, and have you talked to a bank about financing?
- Do you plan to finance or pay cash?
- Where do you want to be located and why? Are there time or distance constraints?
- What type of land do you want? Are you looking for income-producing timberland, farmland, hardwood bottomland with river frontage or a parcel with large lake just for fishing?
- Is your main goal hunting and/or recreation?
- Do you plan to live on the property or is this a get-a-way?
- What is your budget for improvements after purchasing property and what are the estimated cost for improvements? A few examples are roads, game plots, cabin, forest management or lake.
Prepare a Budget
There are many questions to think about at this early stage. The first step is to prepare a budget. Contact several banks and ask them how much you can borrow and how much do you have to contribute for a down payment. We recommend talking to several lenders to understand the terms they have to offer so you can compare terms. Based on your financial status, lenders will give you some price parameters you can work within. Your budget will help you narrow your focus as to what price range property you should search for.
Will You Live on the Property?
Understanding what you want and can afford helps you determine where to begin looking. If you plan to live on the property, cost of land, distance from work, tract size, hunting, recreational interest and many other factors help point you to your ideal location. This is a learning process that will take some time in figuring out the perfect property for you. These questions are essential in saving you some time and making good decisions about Your Land Purchase.
What’s the Distance from Populated Areas?
General land values tend to decrease as you move away from highly populated areas. Typically, we see values decrease in 30-minute time increments as you distance yourself from “civilization”. Time and distance constraints and special needs like medical facilities need consideration. Larger parcels, as well as hunting and recreational properties, are usually found further away from populated areas.
A Knowledgeable Realtor and Forester Can Guide You through the Rural Land Purchase Process
A good land broker can help answer questions you might have during the Land Purchase Process. Even better, what if your land broker is also a registered forester? Would it help if your land broker has the training to have the coveted Accredited Land Consultant (ALC) designation?
A good broker, forester and ALC should be able to assist in the following areas:
- What lenders in the area finance land
- Determining what goals are important to you
- What land best satisfies your needs
- Determine Land & Timber management objectives
- Current knowledge of the available land for sale and current market values
- Assess value of property in a systematic approach of market value
- Understands various components and assets on the land
- Provide real time timber analysis, valuation and management prescriptions
- Provide current cost of forest management and timber income projections
- Integrate landowner objectives, visions, budget into a land management plan and Implementing management objectives
- Find property and guide you through the Land Purchase Process
On the selling side, utilizing a land broker that can provide the guidance, knowledge and skill to help buyers through the land buying process ensures a higher likelihood of selling your land. A land broker that can listen and communicate with a buyer can properly pre-qualify potential buyers to match them to the right property.
As you can see, the Land Purchase Process is quite an involved learning process that requires a professional with ongoing and specific training. Land Done Right is an all-in continued effort that is not part time. Having the right professional on your team is a must. The right professional on your team will ensure you are making informed decisions with confidence.
This is our vision at Green Hill land & Timber. We want you to have the best information possible for your decision process. You need the right professional to be certain you are among the Land Done Right group. We are happy to help you and share our expertise with you in the Land Purchase Process.