THE DREAM OF OWNING LAND FOR FIRST-TIME BUYERS BY MITCHELL EADS REPUBLIC RANCHES SALES ASSOCIATE
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ave you dreamed of owning rural land, a place to conserve, cultivate, and enjoy? Whether a childhood dream, a recent aspiration, or if you are a savvy investor that wants to capitalize on the enjoyment and pride dividend that comes with owning a hard asset like land, the market has found itself in a sweet spot for first-time buyers. The first step we highly encourage is to find a broker that you trust and begin the conversation. The complexities of a farm and ranch transaction can seem overwhelming and create a barrier that keeps many buyers on the sidelines. Working with a broker will ease the stress of the unknown and allow buyers to enjoy the process. Buyer diligence in a farm and ranch transaction can sometimes be a more complex endeavor than a residential home purchase. Numerous data points and property encumbrances are generally less impactful than with rural land. Often it is as simple as knowing what questions to ask. Once you have met or spoken with a broker to discuss your search’s initial parameters and begun to study various properties, the next step is getting out and putting in some windshield time. No amount of data analysis and sorting through maps and pictures can take the place of getting your feet on the land and seeing it firsthand. Some buyers will search for years for the perfect place, looking at ranch after ranch. Other buyers will step foot on the first or second ranch they view and know it is the one. You can feel the excitement and that intangible connection to the land. Some buyers will experience guilt in falling in love with the first few places they see. The process seems too easy, and there is a feeling of potentially missing out on the next property around the corner. We encourage buyers to make informed and thoughtful decisions while also reminding themselves that the perfect property can present itself at any time.
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As with residential purchases, especially in an active market, seeking pre-approval from a lender is highly encouraged. In addition to a conversation with your broker, we recommended contacting a lender as soon as your search begins. Lenders are a valuable resource that can help walk you through rates and requirements to make the process as smooth as possible. This will also help to refine your search by identifying your buying power and bringing your dream that much closer. BELOW ARE SEVERAL FACTORS TO CONSIDER AND DISCUSS WITH YOUR BROKER: REGION As always, real estate balances atop the three critical factors of Location, Location, Location. Across the country, regions differ drastically in their topography, soils, foliage, wildlife, and watersheds. When many buyers begin their search, one of the parameters is often a search radius from a particular city. This is an essential factor in ensuring that travel does not detract from the enjoyment of a property. However, as buyers refine their search, they will often focus on a particular region, rather than distance. Regions can change drastically within a matter of miles. When viewing a property in one season, it is vital to have a broker knowledgeable about a region’s year-round attributes. PRICING AND FINANCING One of the most crucial roles a broker can fulfill is ensuring that a buyer has as much information as possible to decide what they will pay for a property. Brokers will address numerous pricing factors in the recommendations and help buyers feel comfortable that they are within the market. Current interest rates allow buyers to keep more money in their wallet or in the market to outperform borrowing costs. Even cash
