Purchasing Land: 3 Things That Can't Be Ignored

If you’ve been considering purchasing agricultural or farmland, there are undoubtedly a long list of questions to answer and logistics to work through before making a decision. However, regardless of the vision you might have for it, there are three things you can't afford to ignore.

The Importance of Location Assessment

Just like any other purchase you might make, it’s important to take the time to see what you’ve been considering buying up close. There really isn't any piece of technology that can substitute for an in-person visit. Particularly, when it comes to land transactions in real estate, physically making a visit is invaluable. Even more so, making a trip there with the intent of getting answers to the questions below should help make your ultimate decision whether to buy or not much easier:

• What are your initial impressions upon arrival? 
• How do you actually “feel” when you get there?
• How close are you to urban and residential life? 
• What zoning regulations are in place at the local and state levels?
• Does the size of the land you are looking at actually suit your needs? 
• How close is the land to an interstate or major highway? 
• Is there an inordinate amount of traffic or noise? 
• What do the water rights look like? (more on this to come)

Water Is Highly Regulated & Very Expensive

As minor of an issue as it may seem on the surface, the water rights a piece of land has a huge impact on many buyers’ decisions. If you’ve been considering purchasing any sort of property that will someday be used for something else, understanding the logistical possibilities and legal implications that come with water rights is crucial. 

Not only can water be incredibly expensive, but the regulations behind maintaining certain standards are also a mile-long. Any failure to adhere to city and county regulations with regard to water can be costly; even bankrupting investors. This is why you should make sure you can answer the following questions:

• Is city water available? What about county water? 
• What will you ultimately be responsible for? 
• What are the local city, county, and state regulations regarding water on the land? 
• What are your actual water needs?
• Does a well currently exist? Will you have to build one? Are you allowed to drill? 
• What kinds of permits are required?

Knowing The Land’s History Is Invaluable 

It sort of goes hand-in-hand with physically going to a piece of land you’ve been thinking about investing in, but knowing the history is also very important. Understanding the background of something as expansive as a 200-acre tract of land will only help make your life easier when it comes time to close. Just like above, there are questions that you should be able to answer once you’ve taken the time to physically visit and evaluate what’s possible:

• Who was there last?
• What did the previous owners use the land for? 
• What challenges did they face? 
• Have there been any changes to any rules, regulations, or laws with regards to the land since they took ownership? 
• What do local governing boards have to say about its future use? 

As you can see above, there are a long list of items that need to be addressed and questions that must be answered when purchasing agricultural or farmland. And while they might all seem like relatively simple things, ignoring them or not practicing due diligence can be costly. This is why it’s so important to rely upon a trusted real estate professional to help you get the answers you need. 

If you’ve been considering a land purchase and haven’t quite been able to do any of the above, I’d love to help. Feel free to visit my website at www.nolanwhisenhunt.com or give me a call @ (817)733-8122 today!