Are you thinking of buying land? What are some mistakes to avoid when buying vacant land?
Help May Be Available
While some buyers will go the conventional bank or credit union route, whereas they’re lent money to buy land, many buyers make the mistake of not knowing about the Farm Credit System. This system, originally set up by Congress way back in 1916, provides billions of dollars in loans, leases and related services to farmers, ranchers, rural homeowners, timber harvesters, and more. It’s a nationwide network definitely worth investigating if you’re thinking of buying vacant land and looking for funding sources.
Shop for Interest Rates
Speaking of funding, don’t make the mistake of just accepting high interest rates on money that you borrow, thereby increasing the land’s price. You should look for the lowest interest rate available! Land loans, compared to house loans, usually have shorter repayment schedules– say 5 years instead of 15 or 30 years. You’ll want to get the lowest interest rate possible to avoid higher overall costs.
Some land buyers buy land without ever visiting the property. That could be a mistake. You want to inspect the land before you buy it. This will give you a better idea of the area’s topography, as well as access to the property, who the neighbors are (and how they use their land), and whether or not flooding is possible. If possible, hire a professional inspector who can give you a detailed report about the land.
Find the Right Professionals
Another mistake land buyers make is failing to get the right insurance to protect their investment. Land buyers should look into title insurance, general liability, property insurance, and/or crop insurance.
Finally, don’t make the mistake of working with the wrong type of real estate agent when buying land. You need someone who has experience with land transactions, such as Metcalf Land Company, rather than someone who deals with suburban homes exclusively. Call Metcalf Land Company at 864-585-0444 for more info.