What to Know Before Buying Houses for Sale with Land: A Practical Guide to Acreage, Zoning & More

Real estate is a loaded term. I mean, it generally equates to any number of ventures – single-family homes, multi-family, commercial sales or leases, residential leases, business sales, investment portfolios, you name it. Yet there’s one in the bunch that often goes unnoticed, the neglected stepchild, I suppose – houses for sale with land. Land plays an essential role in real estate transactions daily, but for too many of us, it can sometimes be an afterthought.

Whether you’re buying a home with acreage or a property with acreage without structures on it, it’s important to consider these seven principles, which will help you to evaluate all the facets of such an acquisition.

Define Your Goals

What are you looking to accomplish when purchasing a home with acreage? Are you eying up a place for horses and raising livestock? Are you into homesteading? Maybe you simply desire a simple two-story with a large yard for your family. Understanding your goals is the first step in this process and clearly the most critical!

“Some questions I ask immediately are – what the use for the land will be,” outlines Florence Avvisato, REALTOR® with Realty Network Group. “This gives me an idea of how to narrow my search down and how to conduct research for land being sold related to properties that my clients are interested in. Do my clients want to build on the land? Does it matter if the property is cleared or wooded? Would it be used for recreational purposes or hunting? Are the oil-and-gas mineral rights (if any exist) being conveyed with the sale of the property, or does the seller intend to retain them? The details help. All these questions and more are vital as they’ll affect the approach your buyer will take.”

The reason you’re acquiring acreage influences the suitable type of property for both you and your inhabitants. If you’re a homebuyer who’s seeking seclusion, a wooded lot with a buffer area and one where the topography is more pitched to deter neighbors might be ideal. If you’ve researched how to become self-sustaining and you and your family are passionate about homesteading, then you’ll need more level terrain with quality soil, access to water, and good drainage. If you’re looking to acquire an investment and perhaps start a bed and breakfast (BnB), there’s a whole other set of concerns you’ll need to address, including whether or not the municipality, township, or borough permits such endeavors. And maybe it’s not that involved. You could be solely seeking a house situated on a large lot to begin landscaping. There are all kinds of buyers, and communication is paramount.

“Being on the same page is important too when dealing with more than one buyer in a transaction,” shares Dana A. DeLeo, REALTOR® with Realty Network Group. “Location and use play a large role in the decision-making process. How much acreage do they want? Are they looking to purchase acreage mainly for privacy? There are many things for your clients to consider when searching for houses for sale with land. Everything from taxes to the likelihood of a well and septic to the role proximity to family and amenities plays, determines whether a listing is suitable for my buyer.”

Your real estate professional can help merge your goals with what’s practical and legal in your search areas.

Not All Lenders Are Created Equal

Just as a separate set of criteria is used to regulate and officiate professional football as opposed to its collegiate counterpart, so too are there different criteria used to assess traditional residential homes versus large-acreage properties. Sometimes, when a home has substantial acreage attached to it, a traditional type of mortgage might not be a good fit. Instead, a land loan or rural development loan could be required. Land loans usually require a larger earnest deposit as well, so it’s important to rely on a mortgage lender who specializes in this type of financing. If you’re obtaining an equestrian-style property, understand that the appraisal process (i.e., where the financial institution is doing its due diligence in acquiring a value on the property) might be more complicated, as it can be harder to discover comparable properties that have sold in recent months.

Your real estate agent can direct you to knowledgeable mortgage lenders, especially local ones, who specialize in these types of loans.

Land Use Restrictions?!

As a prospective buyer, understanding zoning regulations is essential when buying, especially when your situation might be more unique than the “typical” transaction. While this certainly pertains to commercial property purchases, land use restrictions can and do affect residential and agricultural sales as well. Regulations for land use and zoning impede the rights of owners to use their land as they might see fit. Municipalities and government agencies put limits on what owners can do as it pertains to their properties, but it should also be noted that developers will do this too (i.e., homeowner associations that utilize a specific set of declarations/covenants). Some rural subdivisions or properties that lie in a certain jurisdiction often have rules that apply to land division, livestock, and fencing. etc. There are other types of land use restrictions to be familiar with, such as historic preservation, environmental protection/conservancy, easements, and zoning laws.

Lean on your trusted guide, your REALTOR®, who can provide the necessary information from county planning commissions or municipality offices, and help set you on the right path toward what you hope to achieve via your purchase.

Whose Property Is It Anyway?

Do you recall the hit television series, Whose Line Is It Anyway?, which aired during the 1990s? That skit comedy show had me in stitches whenever I tuned in. Ryan Stiles and that cast were so talented at their craft! They even had featured segments on real estate on the show, believe it or not – “Mi Casa” anyone? Sometimes, would-be buyers are faced with this question, though: Whose line is it anyway? It’s natural to want to rely on tree lines or markers or even a seller’s estimate for a land boundary, but a buyer should never assume they know what they’re purchasing based on these things.

The best approach for someone to take when purchasing a home, especially one with substantial acreage, would be to enlist the services of a surveyor. With a land survey, the buyer will be able to verify exact boundary lines and determine if any encroachments or easements exist. Does a neighbor’s structure cross the land you’re considering possessing? Is there an old utility route on the parcel? These are important questions to consider as the probability of these situations increases when a purchase features more land, is agriculturally zoned, and the like. There’s also the possibility that the land a buyer might be considering is landlocked. If this is the case, deeded/legal access needs to be substantiated before settlement.

A buyer’s agent can direct their client to knowledgeable abstract companies or attorneys, who will address any of these concerns in the transaction.

Rural Properties Have Their Challenges

Not all land is suitable or productive. Depending on what you intend to use the property for, there’s a whole list of items you may want to address during a purchase:

• Is a well or septic system needed onsite? Or if one exists, has it been properly maintained, especially if the property has been unoccupied? Well/septic can be a sticking point for many buyers and sellers alike. A septic system alone could need tens of thousands of dollars in repair or replacement costs.
• Do you fully understand the lay of the land? Upon further investigation, will more mountainous terrain or wetlands affect how you’re intending to use the land? Topography, conservation preserves, or marshland can make or break a deal. If the property is too rocky or elevated, then chances are it wouldn’t make much sense to pursue raising livestock, running an equestrian ranch, or growing crops on the land. Wetlands, especially protected ones, could present a whole host of problems, too.
• Is the property “off the grid”? It’s important to confirm whether a road leading to a property is private or not. The owner of the land might be responsible for maintaining the road, plowing the road, etc. Perhaps satellite options will be needed because Internet and wireless service aren’t presently an option for the property, which you’ve expressed interest in.
• Even flood zones can cause hesitation for parties looking to buy. Floodplain maps (like FEMA’s) help determine if a parcel is buildable and give the buyer a clearer picture of insurance costs, if the property is insurable.

“Obstacles for these types of properties can often be the structures which exist upon them,” emphasizes Ann A. Sheroda, REALTOR® with Realty Network Group. “Some of these homes are dilapidated, so what you’re buying is the land. Renovated or newly constructed homes with a few acres can be mighty pricey in this market. It depends on what the buyer is seeking, because that can make all the difference.”

Your real estate professional can help you navigate this landscape or direct you to a civil engineer, environmental consultant, or other specialist who can get answers to specific questions of significant importance.

Maintenance Costs

The adage is true – the more you have, the more you need to maintain! This is true for the size of a home, and it’s true for acreage as well. There are routine costs to consider, such as brush control, mowing, and tree removal, to name a few. If livestock fencing is needed, this could be quite costly, depending on how many acres the fencing will need to cover. If you’re purchasing land in a rural setting, you should also expect encounters with deer, rabbits, woodchucks, and other invasive animals.

If you’ve chosen an agent whose niche is marketing and selling rural property, then you’re in good hands. They’ll be able to provide budgetary guidance as you look ahead toward such a purchase.

Choose Wisely

This brings us to one final point. If you’re passionate about homesteading, creating an equestrian empire, raising the next generation of feisty free-range chickens, or you simply have major concerns about how you can put your land to use, counting on a REALTOR® who specializes in rural listings is the best move you can make – bar none. This agent usually has a strong network of professionals who also deal with these types of properties. They know about land-quality issues, local water tables, land regulations, rural land pricing, and might be able to detect structures or easements along the way. At the end of the day, look for someone who has sold multiple houses for sale with land.