Buying undeveloped farm land for new homesite

[BullseyeJC]

Does anyone have any horror stories of buying a piece of undeveloped farm land only to find out that there was some problem preventing them from building?

From what I have gathered, the main things to check into are:

1. Current and future zoning
2. Availability of utilities
3. Mineral rights clarification

Is there anything I'm missing? Once again, this is not a city lot, this is some acreage that will ultimately be used for a home.

 

[Indiana George]

Hello BullseyeJC!

I would suggest that you expand item #2 to include the availability of water and the costs/viability of septic systems.

Having worked in the residential/commercial water supply industry for several years, I frequently see these important aspects being overlooked.

Good luck to you!

 

[Faulkner]

Indian George makes a good point. I bought 6 acres from a developer who had bought a farm and was dividing it up into 5 to 10 acre plots. When I bought it to build my house there were two areas I overlooked.

First was water, I had to go 150 feet to get a good well, which is deep around these parts, and cost me about twice what I had budgeted.

Second was mineral rights. At the time I could have cared less so I didn't pay much attention to the fact that the original owner retained the mineral rights. Now, some years later, it has become profitable to drill for shale oil and natural gas in the lower Ozarks and a lot of folks are getting a pretty penny for leasing their rights . . . only I don't own mine. It's not costing me any money, but I was disappointed when I dug up my deed and found out that I'd not paid any attention to this when I bought the land.

 

[Munsterf18]

We did it.

Get a soils test (or whatever you're county requires) for the septic system, cause if it won't perk, you can't do it. You won't get the permit. Even if the neighbor has one, it can be different.

Before we built, we drilled the well. No good water would mean no good house, and a tough resale.

After that, it was just lots of work and $$.

Good Luck,

 

[BobK]

Also have it checked for drainage/high watertable. These will determine if you can build on the property or not. It may be a great idea to invest in the right property......but not all property is a good investment. If you can not build on it........it's just farmland!!!! Good if you want to grow corn, wheat, and tomatoes.....or graze cattle on it. You've got to know what you are doing, before jumping in!!!

That's what keeps me from buying rural land. My dabbling in the stock market wasn't really a great success lately.....but it's holding it's own. I transfered my Mutual Funds over to an Insurance Company Annuity. I just couldn't take the ups and downs of the market, for reasons that I have no control over.

 

[afriqueart]

You might check into whether or not the local politicians are crooked. Oh..... wait.... Nevermind!

 

[BILL]

There's some good information in some of the Log Cabin magazines. Look for the annuals that feature how to build and the pitfalls.

 

[Stevie]

How far to run electric power.

Not for sure, but soil conservation layout ground might be an issue. Farm Service/soil conservation thing.

 

[feralmerril]

I bought 10 acres of beautifull somewhat remote mountain land in calif in the mid 70s. When I retired I came to the conclusion that it was far to steep to be practable for my wife and I.
I did make out well in selling it. Just remember its hard climbing like a mountain goat when you get old.

 

[JWiley]

If you decide to get it, add two things to your budget: an independent survey that is not by the sellers surveyor and title insurance in your name, not the lenders. Might add $1k or so to your expenses but well worth it.

 

[Cobroller]

Friends bought land. Realtor showed property line to be old fence row. House built. Surveyed. Property line ran through the kitchen. Seller watched them build--then put the hammer to them on the balance of the property. Realtor denied any responibility, "you bought the 10 acres in the legal."

 

[luis]

Also check for water rights. In some areas you might not have the right to drill a well.

Check with the County solid waste department or health department to confirm what had been on the property before. In Illinois including rual areas you are allowed to demolish your house into the basement and cover the ground with dirt. You are required to put that information in the title but I can tell you it rarely happens. The suprise can cost you 10-20K when you go to build.

Go to the country recorder's office and do a title search for all properties within 1 - 2 mile radius. The land may be currently zoned residential or ag but the owner could be a landfill or something worst. A friend saved himself a lot of problems when he did the search. Waste Management owned a lot of land 1 mile north of the property he was going to buy. The land owner had showed him current documents showing that all the land in the area was zoned ag he just did not tell him what the future held.

My budy used the information to get the price lowered by 5k an acre. 18 months later he sold the land to WM at a profit of 8K an acre.

Check with state DNR for any endangered plants or animals that may prevent you from building.

Finally try to get a written sellers notification that lists everything the seller knows is or may be an issue with the property. Later if something is found that he failed to mention you might get your money back.

Early 1980s a guy I worked with was planning his retirement and bought land near Yorktown, VA. I had never heard of a seller's statement until he began construction and the contractor found graves on the property. VA did not allow them to be moved unless family memebers gave permission. He ended up lossing the property to the state.

 

[Nightowl]

Always have it surveyed!! Then you will know the limits of your property. If it has already had a recent survey, get a copy and locate the pins driven into the ground. In Missouri, there are surveyors around and the county has one too. It really is worth the minimal expense.

Another thing to check is utility easements. There may be a pipeline under the property, or a powerline easement for some future construction.

Good luck.

 

[Old 44 Guy]

Been there & done that. Be prepared for a lot of dollars going out. I built a home on 21 acres willed to me in 1991. Septic approval, plans, well permit & school tax ran over 5 grand. Schools conned me out of $1661 bucks @ age 60. I had budgeted 35 hundred for well & pump. Water driller hit water at 498 ft. @ 10 bucks a foot & $9,300 bucks later I had water to the surface. Now for the builder, he was great but the county inspectors wern't. Took 5 1/2 months before moving in. Small home, 3&2, 1056 sq. ft. But was paid for. When all was done I had 600 bucks in the bank.Power wasn't a problem but Telco was. This was in Calif. Understand other states are worse.

 

[m1gunner]

As already noted, water and septic should be checked out first. Usually a perk test can be done before you buy the property, some locals require a report from a licensed Soil Engineer for new septic tanks (big bucks)

See if county water is close or soon to be available.

Some power companies charge by the foot to run power lines to undeveloped property, other power companies do not - it pays to check.

Driveway permits, building permits, well permits, etc., can add up, check with the county.

High speed internet probably not available, same for cable TV, are these must haves?

Good luck, it really is worth all the hassle to get some breathing room.

 

[user]

If you decide to get it, add two things to your budget: an independent survey that is not by the sellers surveyor and title insurance in your name, not the lenders. Might add $1k or so to your expenses but well worth it.

I'd agree and add that an independent title search would be a good idea. There may be a will with a contingent remainder laying around somewhere, an unsatisfied judgment lien, or an undeveloped easement for a private road. Any utility easements that are vague as to the location should be identified on the ground.

 

[peyton]

A lot of good suggestions here so far. See if the land has neighbors and visit them before walking the land. I found the 5 acres and the neighbor chased me off with a shotgun!! The cedar in Texas is so thick I was actually trepassing on her land! As the years went by they were very good people.

 

[ect1222t]

Accessability

Something I have not seen here is the subject of accessability. You need to be able to get to and from the property you are buying. You must have a deeded access to the property. Without that, you are land locked. How do you, inspectors, contractors, and sub-contractors get to the worksite?
Also check for "conservation easments". They allow the property to be sold, but not improved upon. Check, check, and check again. -Ed.

 

[tops]

GET EVERYTHING IN WRITING!!!!!! Before we bought where we live now the county inspector picked two places that would perk. We bought the land and when we got ready to build he said one place wouldn't perk. We told him that was one of the places he picked but he said it didn't matter we couldn't build there. We didn't have it in writing. We used the second place and everything worked ok but we could have lost a lot of money. We were only going to build one house and it was just a whim when we had him pick two places. As I said before, GET EVERYTHING IN WRITING!!!!! Larry

 

[oldRoger]

We have done it twice with no more than minor but expensive glitches.
The advice above is all good.
In order I would place;
Water, if you don't want to truck water, this has to be #1
Disposal, Perk test, and what ever else may be required, trucking water is possible, trucking waste??
Other utilities, could get expensive, you at least need to know.
One thing I didn't see mentioned is Road/Driveway, If you are not expert or an accomplished amateur in the road building/grading field seek professional advice. There have been a couple of postings here about this, driveways also can get expensive fast. Came our first spring and our crushed rock drive disappeared in the clay.