Land issues are sensitive. Thus, you need to investigate adequately raw land purchases as well as evaluate and negotiate by use of a rational and logical plan. Raw land is has no sewers and utilities. Rural real estate is complex, so finding a good agent who is experienced in purchase of property is a necessary investment. The investment represents a substantial financial commitment. The information below on how to find rural land for sale southern Colorado is invaluable to first time land buyers.
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.
Consider any assets on your new investment such as buildings, fenced pastures, stores, irrigation pumps and firewood. Consider water as the most critical resource, especially if you are going to do irrigation. Potential buyers should identify both physical attributes and distractions, and view the property as if they intend to resell it.
Where the farm falls into a special tax assessment program you pay less property tax per year than other properties. When the property has an open-space treatment and property tax liability it will depend on agricultural-use instead of market value. The Open-space status will result in a some reductions in taxes. Changing this use will trigger a rollback and impose a tax relief on the farm for the previous taxes plus interest.
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.
A potential buyer should not purchase the property without inquiring about the possibility of mineral exploration. If the current owner has executed a lease with a producer, that lease remains in force, even if the minerals transfer with the surface. Remember, mineral extraction may interfere with soil exploitation and utilization.
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.
Consider any assets on your new investment such as buildings, fenced pastures, stores, irrigation pumps and firewood. Consider water as the most critical resource, especially if you are going to do irrigation. Potential buyers should identify both physical attributes and distractions, and view the property as if they intend to resell it.
Where the farm falls into a special tax assessment program you pay less property tax per year than other properties. When the property has an open-space treatment and property tax liability it will depend on agricultural-use instead of market value. The Open-space status will result in a some reductions in taxes. Changing this use will trigger a rollback and impose a tax relief on the farm for the previous taxes plus interest.
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.
A potential buyer should not purchase the property without inquiring about the possibility of mineral exploration. If the current owner has executed a lease with a producer, that lease remains in force, even if the minerals transfer with the surface. Remember, mineral extraction may interfere with soil exploitation and utilization.
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