Avoid the Nightmare!! 5 Tips When Buying Rural Property.
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- Опубликовано: 9 июн 2024
- Resources for Your Country Property Buying Adventure!
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So you are thinking about buying property in the country? You want to say sayonara to the hustle and bustle of the city life and relax on your 40 acre dream ranchette and watch to cows graze as the sun sets over the horizon? That is a fantastic goal, but there are a few things that you should understand if its your first time buying outside of the city.
In this episode, Jordan lays out 5 tips for buying rural property. Of course this is not comprehensive, or universal, but it comes from years of buying and selling properties in rural Texas. Feel free to add your top tips in the comments below!
Tip # 1 : Consult with a LOCAL real estate professional
Maybe you have a favorite agent that you have worked with for years or maybe you are a seasoned pro that "don't need no stinkin' realtor!" No matter what your background, a local real estate professional will be your fastest way of getting the lay of the land.
Tip # 2 : Talk to the Neighbors
As much as the real estate community will jump start your search for great property, they will never know as much about a specific property as the neighbors. Get out there and get to know the surrounding community before you buy. Ask them about the history, the community, and any drama that you should no about. It could save you headaches and hassles in the future!
Tip # 3 Understand Easements
It is not uncommon for rural property to be reliant on a deeded easement for access or to have an easement for the neighboring property to run through it. Ideally, the property has direct access to a county road or state highway. If it does not, and you must use an easement to gain access, make sure that the easement is deeded - meaning it is legally granted and protected. Also, make sure you fully understand who has the right to use the property to gain access to their properties. Otherwise, you may find yourself in the middle of a litigation nightmare without access to that "dream" property.
Tip # 4 Understand Mineral Rights
Urban property usually has all the mineral rights tied up with the municipality or the original developers of the subdivision. In addition, there are usually ordinances preventing or limiting extraction activities in town. However, when you buy in the county, it is very common to only be purchasing the surface rights of the property. This means that the owners of the mineral rights can extract minerals from under your property, with all the traffic and equipment that that entails. It's not a common problem, and usually the surface rights leases for any oil and gas activity make up for the hassle, but it is something to understand before you lock yourself in.
Tip # 5 Hire a Good Title Company
A title company will be required if you are financing the property, but is a must even if you are a cash buyer. The title company will research all claims on the land and will issue insurance that protects you in the case of a long lost uncle coming to town claiming that he has a deed for great grandpappy on that parcel. It's just good due dilligence to have a professional set of eyes running through the chain of custody to protect your investment.
6. Check to see if in a flood plane
7. Get a Perk test for septic as the ground might not have a suitable location for a drain field (or where you would want to put it)
8. Does it have power? if not how much would it cost to get power?
9. High speed internet availabilty?
10. Does it have a well? Expect to spend at least $20K and check with the neighbors on how deep their well is to get a estimated cost.
11. Are there good builders\contractors in the area?
12. Is the road state maintained? Will you have to spend $$$ for road maintenance
*Ensure your dream property's not surrounded by abusive cults or Potterville Monopoly bullies. Check Town Meetings, Sheriff's Calls/Reports, Social Media +News Outlets, Yelp +Air B&B Reviews etc.*
Glad you’re back as well. Will we see more building construction content soon? Hope so!
So happy to see a post from you.
High Jordan!! Miss seeing you and your wife working together on projects!! Loved all of the great ideas and clean building techniques!! As the @EssentialCraftsman says, "keep up the good work"!
Good information, thank you.
Thank you for the tips
Keep in mind that Title Insurance through the mortgage only protects the lending institution. It doesn't protect the buyer or their interest in the property. The buyer should always purchase a title policy themselves in addition to the one the lender has. This can usually be purchased from the same Title company without having to pay for another search.
Good point. Thanks!
Welcome back!
Check if there's a farm with a concentrated animal feeding operation CAFO nearby. They can smell awful and also pollute nearby wells.
Your local realtor may be a friend or relation of the vendor. It happens more in rural areas.
Look’s good bro!
Nice to see you post more content after a bit, glad to have it. Would I see more of you on another platform? I don't use the big social media platforms but insta sure seems to be huge for the construction industry.
Local real estate agents are unfamiliar with most rural properties unless that is all they do. We have encountered many that don't know if a well can be installed. Is there water beneath the property. They don't know about easements or accesses etc.. So we have decided local are really no good..
Pretty broad brush.....Perhaps if you purchase again, you'll do your due diligence before hiring a "local realtor".
Soooo if you should find Gold on your land, and you don't have mineral rights, are you saying you can't keep it?
There is a really cheep property I’ve been watching that has an oil well on it. It’s only taking up a portion but it sounded like they had more rights than I was comfortable with so we didn’t buy.
oil wells are stupidly expensive to plug back up afterwards too apparently. Most people just leave them open to leak everywhere.
Omg is anything simple in this life 🤦♀️
Glad you back. You've been missed. Timing is interesting, my wife and I are looking for rural property to build our retirement home.
Good to see you're back!
Hey, thanks!
Good points! Welcome back Jordan!
I thought you quit RUclips
Oh hello, welcome back to RUclips. XD
Glad you are back man. Was worried about you.
Good video. Would love to hear your thoughts about how to select a custom home builder.
Boop
Very good info. 👍
Austin Texas!! I thought you guys were in West Texas???
We live in Austin, but build all over an hour from the panhandle of Texas originally
𝚙𝚛𝚘𝚖𝚘𝚜𝚖 🤭
This video is full of crappy advice and I'm speaking as somebody who bought rural property recently...
Realtors really suck especially if you're not buying a traditional house. The financing on farmland is generally from other sources that they're not even familiar with. You're not getting a traditional mortgage. Realtors also barely do any work that you couldn't do yourself if you really started to find out what buying property entails. They also take a big cut of the sale price.
Talking to neighbors can also backfire on you big time if you're not careful! These neighbors might have vested interest in getting the property themselves or giving you bad information.
I'll keep watching this video and edit as I can
I hear you on the realtor side. I have had several agents that were nothing more than paper jockeys, looking for a quick turn. However, if you are new to an area, a good agent that knows the market and area well can be very helpful. To your point on the fee, the seller is paying the fee, usually around 6%, and the selling agent will split the commission with the buyers agent. The buyer pays nothing more.
I am curious, after just going through the process, what tips would you offer?
@@JordanSmithBuilds I will preface this saying I'm a bit of a jerk... but appreciate the reply
First of all I'd look into your finances and make sure you're prepared to buy land/property. Usually this takes at least 20% down. Financing is also more difficult, and you might need to work with a co-op, bank, or private financer directly. This could be complicated tremendously because your dream property is actually being sold at auction!
Learn how to use county tools like GIS to find information about the property. Learn how to use tax records, to determine value and history... Become a property PI.
Understand the legal process of real estate to some degree. Get in contact with lawyers who can work with you if needed. In my case the lawyer helped remove incumbrances from the title. The title company was more than happy to leave them there...
Practice buying real property... Go to the county and find information about a property for sale. Perhaps talk to the people who end up actually buying it, and ask if they'd be okay sharing the information about the process they're going through in exchange for the information you collect.
Visit the property, walk around it, look at everything, and inspect it over and over. Don't worry too much about trespassing, just be friendly. Circle from the property outwards, up to a few miles looking at other properties in the vicinity. Look for rock quarries where they might be using Dynamite, or other properties for sale, or things like train tracks you might not have seen...
I'd also perhaps look at the laws of the county and state you're looking at buying the property in. One county may have Draconian laws that you do not appreciate, but the county a few feet over might be a dream for you.
That's just a few things I can share off the top of my head rambling..
@@xephael3485 Good points. A couple things I will add:
This sounds ultra simple, but Google Maps (or similar) will give you a bird's eye view of the area. When we were looking, I used Google Maps a lot to see things you won't notice driving around. it also gave me an idea of proximity and various routes to things we need (highway access, distance to town, etc.).
Knowing the county rules can be a big deal depending on your goals.
Speaking of goals, be honest about what you want, what you need, and what you are looking for. Living on acreage is great but know that the store, or anything else won't be "just down the street." Living on acreage requires a certain amount of self-reliance compared to city life. If you love fast food and you're always calling someone for repairs each time the wind blows, country living isn't for you.
@@jasonschnereger it's not, best thing I've ever done
@@jasonschnereger how many acres are you looking at and in what region?