Here at Bankers South, in our AgAmerica Lending department, we finance agricultural land loans for rural property.

Investing in rural recreational and investment property is more popular than ever. Though wildly popular, it’s important, as a buyer, to approach the process mindfully. Don’t just latch on to anything because it sounds good. Get the facts.

Here are 8 tips to help you make an intelligent purchase:

  1. Do your research: Research the market to make sure the property is not over-priced. Listed prices do not always reflect what properties are truly selling at. To be sure you’re getting a fair deal, get a local realtor involved in the process.
  2. Know the infrastructure ins and outs: Purchasing rural land can present challenges. Oftentimes, these properties are without access to city water and sewer services and may have limited or no access to electric, phone, cable television, and high-speed Internet services. Be sure to look into all of these details, including road maintenance, trash pickup, and school bus routes.
  3. Find room for improvement. Are there existing structures on the property that could be restored economically rather than building new, costly structures? Do you need to install septic systems and wells? Connect with a local contractor and approach your neighbors to determine standard well depth and septic system requirements for the specific soil conditions.
  4. Be aware of codes and restrictions. Make sure you are aware of any restrictions on the land. If there are restrictions, determine if you will deal with them and then, determine how you will deal with them. Ask yourself: How will these restrictions impact this rural property and a future sale?
  5. Get insurance rates. It may be harder to receive the coverage you need for your property outside of city limits. To get appropriate coverage, contact your local realtor or ag lending company.
  6. Know the property details. Understand your surroundings. Make sure there aren’t any potential issues neighboring you that would impact a future sale. Also, be aware of environmental factors. For example, know whether or not you are in an endangered species zone. Also, look into any previous environmental contamination from former owners. Bottom-line: Know EVERYTHING about your potential land and the land surrounding it.
  7. Budget wisely. Aside from purchase price, consider costs for maintenance and enhancements like fencing, ponds, outbuildings, new appliances, landscaping, equipment, furnishings, and general repairs when you begin to budget and finance your land.
  8. Summon the experts. Ag lending companies like AgAmerica Lending understand the nuances involved in buying rural land and design ag loan programs specifically for rural property owners. For more information on our agricultural land loan options, or 844-516-8176