Get an independent estimate of the value of your land. It is almost impossible to be impartial about the value of your own farm, especially if you do not rely on actual sale data from the courthouse. Thus, retaining an appraiser or a real estate broker and get some facts to work with. You may start your search by contacting farmers, investors, real estate agents, state and federal agencies. The tips below will come in handy to prospective property buyers looking for rural land for sale southern Colorado.
You need to understand clearly the intended use of the property. More than any other single influence, location shapes the potential for specific uses of a property. The worst you can buy is swamp or marshland. Clearly define the major farm use you envision pursuing and specify the physical characteristics needed to support that use. Consider availability of water, clean air, electricity and sewage disposal.
Ensure you read the whole report and conditions that go with it. Property rights will define legal ownership, while property characteristics do define physical uses . Hire a lawyer if need be. They specify the prospective legal applications of the farm. Property rights are important than physical characteristics.
Read the water certificate and understand what it means in terms of usage of water and the area allowed for irrigation. Landowners must irrigate at least once every five years in order to retain the validity of their rights. You need to know the year your rights date back to and the sources of water to your property. Know if your rights are currently valid and active. Check if you have ponds, creeks, or wells that you are legally able to use to irrigate.
Where the property has been in your family a long time with no adjustment in the basis, you could pay a lot of capital gains tax. Check with your tax assessor your position and establish development limitations, depending on zoning status. Liaise with your accountant on issues of taxation. The appraisal method used to determine taxes has been yet another potential obstacle that could affect price negotiations.
Consider the price at which the property is sold and mode of payment. You may consider the services of an estate lawyer to help finalize the transaction. This will prevent issues such as fraud. Be careful to set your payments so that you can afford the payments along with your current cost of housing. Make sure that there is no prepayment penalty on your seller-financing note.
Consider Lease Provisions. Most land leases run for short periods, and are renewed every year. The leases may exert an influence on the buying process when they specify a right for refusal on the first instance. Where the lease period is short, the farm may not attract prospective buyers. Check with the relevant agricultural department for the lease period.
Endangered species regulations or the presence of wetlands can limit land-use options. Federal law protects designated endangered species and requires the preservation of their habitat. It is helpful for the buyer to be aware of existing endangered species habitat and to know about threatened species that may acquire endangered status in the future.
You need to understand clearly the intended use of the property. More than any other single influence, location shapes the potential for specific uses of a property. The worst you can buy is swamp or marshland. Clearly define the major farm use you envision pursuing and specify the physical characteristics needed to support that use. Consider availability of water, clean air, electricity and sewage disposal.
Ensure you read the whole report and conditions that go with it. Property rights will define legal ownership, while property characteristics do define physical uses . Hire a lawyer if need be. They specify the prospective legal applications of the farm. Property rights are important than physical characteristics.
Read the water certificate and understand what it means in terms of usage of water and the area allowed for irrigation. Landowners must irrigate at least once every five years in order to retain the validity of their rights. You need to know the year your rights date back to and the sources of water to your property. Know if your rights are currently valid and active. Check if you have ponds, creeks, or wells that you are legally able to use to irrigate.
Where the property has been in your family a long time with no adjustment in the basis, you could pay a lot of capital gains tax. Check with your tax assessor your position and establish development limitations, depending on zoning status. Liaise with your accountant on issues of taxation. The appraisal method used to determine taxes has been yet another potential obstacle that could affect price negotiations.
Consider the price at which the property is sold and mode of payment. You may consider the services of an estate lawyer to help finalize the transaction. This will prevent issues such as fraud. Be careful to set your payments so that you can afford the payments along with your current cost of housing. Make sure that there is no prepayment penalty on your seller-financing note.
Consider Lease Provisions. Most land leases run for short periods, and are renewed every year. The leases may exert an influence on the buying process when they specify a right for refusal on the first instance. Where the lease period is short, the farm may not attract prospective buyers. Check with the relevant agricultural department for the lease period.
Endangered species regulations or the presence of wetlands can limit land-use options. Federal law protects designated endangered species and requires the preservation of their habitat. It is helpful for the buyer to be aware of existing endangered species habitat and to know about threatened species that may acquire endangered status in the future.
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