The 7 Things You Can't Overlook When Buying an Acreage

Rochester Minnesota Real Estate Podcast with Andy Mulholland

Have you ever considered buying an acreage or a hobby farm? You need to consider these seven points to help you decide which one is right for you.

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Have you ever thought about buying an acreage or a hobby farm here in southern Minnesota? There are seven things you need to consider before making the jump:

1. Financing: It can be limited for these kinds of properties depending on the size. Fannie Mae and Freddie Mac typically don't buy these loans on the secondary market when they're larger than a certain size. If you need financing for a medium or large property of this kind, we can refer you to a few lenders who work with acreages.
2. Well and septic systems: You have to consider the age and depth of the well; remember that you won't be on city sewer and water on an acreage. Also consider the septic's age and make your offer contingent upon a state septic compliance inspection.
3. Outbuildings: How big are they? Do they fit your needs? They're expensive to add down the road, so make sure you've figured that out prior to making an offer.
4. Livestock or animal needs: What kind of pasture area will you need? Remember that fencing can be expensive to buy new or repair. Will the animals need new shelter? Where is the closest water area?
5. The exact property lines: Many older acreages that have been with an owner for a very long time just have estimated property lines. You might think about making your offer contingent upon a survey paid by the seller.
6. Property maintenance: How much mowing time will it take for a property with that much area? How much time do you have to dedicate to it? If you don't have the time, can you pay someone to do it?
7. Location: Are you on blacktop or gravel? Make sure you're aware of what it will look like. For example, if you're on gravel, your car will get dirty. You also want to know how well the road gets plowed in the wintertime. Similarly, what is the school system and what does the busing look like if you have kids? Finally, think about the proximity to town with shopping. Many buyers forget to think about the convenience factor and how close they are to things like grocery stores or gas stations.

If you have any other questions about buying one of these types of properties or any other kind of property in the southern Minnesota area, don't hesitate to reach out to us. We're always happy to help!