10 Things to Consider BEFORE Buying Homestead Property

Buying homestead property, or raw/undeveloped land with the dream of building a homestead can be exciting. However, it is crucial to approach this decision with careful consideration. As a real estate agent and personal homesteader, I understand the importance of finding the perfect property that aligns with your homestead goals and aspirations. In this blog post, I will share 10 essential factors to consider when buying your homestead property.

Before we get into the 10 factors, let’s talk some basics on where to find land and the types of financing available.

What Is Undeveloped Land?

Undeveloped land, often called raw land, is a vacant area without any public utilities, buildings or typically even driveways. It is generally untouched and in its “raw” form.

Where To Find Land For Sale in Georgia

There are various places in which you can find raw land. Here are some options:

1. Local Real Estate Agent: Contact a local real estate agent + request a list of land for sale in your specific area. Not only do Realtors have access to the MLS (where local agents list land and homes for sale which then populates to third party sites such as Zillow, Realtor, etc.), they have knowledge of the local market and can help you find suitable land options that may not be listed online. Click here to connect with me in helping you find the perfect parcel of land,
2. Real Estate Websites and Online Listings: Utilize popular real estate websites and online marketplaces that specialize in land sales. Websites like Zillow, LandWatch, Land And Farm, and Mossy Oak allow you to search specifically for raw or undeveloped land in your desired location.
3. Networking and Word-of-Mouth: As a homesteader myself, I am a part of multiple local homesteading or farming communities. I’m happy to include you in those groups, or do the network research for you. By networking with like-minded individuals, I often come across landowners looking to sell or hear about potential land opportunities.
4. Drive Around and Explore: Take some time to drive around the areas you are interested in and look for “For Sale” signs or vacant lots. Some landowners may not actively list their properties but instead rely on signage to attract potential buyers. PRO TIP- take a picture of the sign and drop a pin. Text or email that to your agent and ask them for more details.

Can You Get a Loan To Buy Homestead Property?

YES! You absolutely can get a loan to buy homestead property / purchase land. But the type of land, whether you wish to build on the property, your timeline of projects and other factors can help determine which type of loan is necessary.

Here are some options to consider:

1. Land Loans: Land loans are specifically designed for purchasing undeveloped land. These loans may have higher interest rates and shorter terms compared to traditional mortgages. Lenders may require a larger down payment, typically ranging from 20% to 50% of the land’s purchase price.
2. Construction Loans: If you plan to build a home or other structures on the raw land, you might consider a construction loan. Construction loans provide financing for both the land purchase and the construction process. They are typically short-term loans that require a detailed construction plan and a timeline for completion.
3. Seller Financing: In some cases, the landowner may offer seller financing, where they act as the lender. This option allows you to negotiate loan terms directly with the seller, potentially with more flexible down payment requirements and terms. However, not all sellers offer this option, and it may require thorough negotiation and legal agreements.
4. Home Equity Loans or Lines of Credit: If you already own a property with equity, you might consider using a home equity loan or a home equity line of credit (HELOC) to finance the purchase of raw land. These loans use the equity in your existing property as collateral.
5. Personal Loans: Personal loans might be an option for smaller land purchases or if you have a strong credit history. However, personal loans typically have shorter terms and higher interest rates compared to other loan types, and they may have lower borrowing limits.
6. Local Banks and Credit Unions: Local banks and credit unions sometimes offer specialized loan programs for raw land purchases, especially in rural areas. These institutions might be more familiar with the local market and have more flexibility in their lending criteria.

I always recommend working with local lenders and have contacts who offer multiple loan types and can further assist you. Please let me know if you’d like to connect with one of my recommended lenders.

10 Things to Consider BEFORE Buying Homestead Property

1. Location, Location, Location: Choosing the right location is paramount when buying a homestead property. Consider factors such as climate, proximity to essential amenities like schools, healthcare facilities, and stores.
2. Budget: This is a big one. When you’re buying raw land WITHOUT an existing home on the property, you need to consider where you’ll live and the finances that come with it. You don’t want to make the mistake of becoming land locked if you purchase a property that is out of budget leaving no room in finances to build a home. Consider the big picture when determining your budget.
3. Land Size and Terrain: Evaluate the size of the land and its terrain. Determine if the property offers adequate space for your desired homesteading activities, whether it’s gardening, animal husbandry, or renewable energy projects. Assess the topography, soil quality, water sources, and potential for expansion, keeping in mind the specific requirements of your homesteading plans.
4. Water Availability: Water is crucial for any homestead. Assess the availability of a reliable water source on the property, such as wells, springs, or access to a nearby creek or river. Consider the quality, quantity, and ease of access to water for both personal consumption and irrigation purposes. In addition, you’ll need to consider the price required to establish your chose water system. For example, drilling a well in our area can cost anywhere between $3,500 and $15,000 and will need to be considered in your budget.
5. Soil Quality: The quality of the soil will significantly impact your ability to grow food sustainably. Consider conducting a soil test to assess its fertility, composition, and potential for improvement. Look for properties with a variety of soil types that can accommodate different crops and gardening practices.
6. Legal Restrictions and Zoning: Research the local regulations and zoning laws that apply to your prospective homestead property. Determine if there are any restrictions on land use, the types of structures you can build, and the number and type of animals allowed. Complying with these regulations will help ensure a smooth transition and prevent future legal complications.
7. Infrastructure and Utilities: Assess the existing infrastructure and utilities on the property. Consider the availability, and cost, of electricity, gas, internet connectivity, and waste management systems. Additionally, evaluate the condition of any existing buildings or structures, as renovation or repair costs can impact your budget.
8. Accessibility and Commute: Consider the proximity of your homestead property to essential services, such as schools, hospitals, and grocery stores. Evaluate the commuting distance to your workplace or other places you frequently visit. Keep in mind that while you may desire a remote location, accessibility to amenities is crucial for convenience and emergencies.
9. Community and Support: Evaluate the surrounding community and determine if it aligns with your values and goals. Consider the presence of like-minded individuals, local farming or homesteading groups, and opportunities for collaboration. Building a strong support network can be invaluable on your homesteading journey.
10. Long-Term Goals and Resale Potential: When buying a homestead property, think about your long-term goals and aspirations. Assess the property’s potential for growth, expansion, and future resale value. While it’s essential to focus on your immediate needs, having an eye on the future will help ensure your homestead property remains a valuable asset.

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Still Have Questions About Buying Homestead Property?

Whether you’re actively looking for land to purchase or just considering it, I’m here to help. While I’m local to and specialize in South Georgia, I have a team of agents all over that I can refer you to if you’re not local Georgia. And if you’re weighing your options on if homesteading is for you, I’d be happy to answer any questions you have!

So, what’s the next step? The next step in getting you closer to buying and/or building the homestead of your dreams is to have a 1:1 coffee chat with me. We will go through everything in more detail and establish a timeline based on your needs. This can be in-person or virtual, just reach out below:

Contact Me – Cassie Long – Licensed GA Realtor 

Call/Text Direct at (404) 429-7859

Email: [email protected]

Horizon Realty, LLC 411949