10 Tips for Buying a Farm
The flip side to selling your farm is buying one. Whether you’re looking for your first farm or going for a change of scenery, keep a few things in mind when looking at properties:
• know your wants and needs, and set priorities
before you view a farm. It’s easy to fall in love with the forested hills in front of you, forgetting you need flat land for market crops.
• have a real estate agent on your team. with
farm properties so in demand, some are sold without being listed. An agent in the know can plug you in to these before-market sales.
• “talking to a lender first is really helpful, because
then you know what’s possible for you financially,” says Heather Housman, a realtor in Kentucky. You may qualify for properties of a higher sales price— or a lower one—than you thought possible. A buyer pre-approved for a mortgage is more attractive to sellers, as well. Certain properties allow for U.S. Department of Agriculture and other special financing, and a lender can explain those.
• know your rights: especially water rights and
mineral rights; especially in the Western U.S.
• understand easements. housman suggests
asking about conservation easements, which may dictate building sites and property uses, as well as right-of-way easements, which could allow neighbors and utility companies access to areas of the property.
• ask about leases. these might cover hunting,
farming, a home or an outbuilding on the property.
• ask about the land’s previous uses. you may
want a soil test, just as you’d get a home inspection.
• look into the uses of neighboring properties,
and consider your best neighbors.
• Check on infrastructure, especially for rural properties. If you work from home, high-speed internet may be a must-have. Understand septic systems and lagoons common to rural land. If the property has a well, ensure its water quality and reliability.
• Be patient. It can take years for the right property to come about.