buying a second home, with land

[bueller]

Be careful bueller, my dad can tell you some horror stories about his dealings with the Juneau Co. land guys. He got nothing but grief when they blocked the fire lane he had used for an easement to the north side of our place. :mad:Oh we had an easement alright, walk-in only!:rolleyes: Of course we do, it's public land, we can walk across it any time we please?:confused: They totally restricted all vehicular access after 25 years of us using the fire lane for access. Get that lawyer and make sure all ducks are in a row. The loss of that access is the one of the primary reasons he sold the place, and why I didn't buy it myself.

I remember your easement horror story and actually looked it up earlier "over there" to re-read it. The easement appears to be legit as it doesn't go through county property ;) and it's listed on the GIS map. But that will be the attorney's #1 job to make sure it is legit now and will be in the future.

 

[bueller]

Septic test may be required again by your lending institution. What was done earlier for someone else may not meet requirements for your bank, just keep that in mind. Same for the well.

And remember, on average most people only own for 5-7 years. You are buying to resell whether you realize it or not. So make your purchase a good one. Hate to see you lose money if it is a tough property to resell.

We understand the real possibility that we could be looking to resell this property in the not to distant future should circumstances in our lives change. Not going to over pay just because it "feels" like the right property or because it's close to my Pops'. Investment is one of the main reasons we decided to buy off his property instead of building on it (right now). Maybe we turn a nice profit in 10 years on this place and decide to build over there. Who knows.

 

[wiscwhip]

Just don't want to see someone else get burned. Folks were just more trusting back in the days when he bought the place and in the end he found out he got taken by the previous owner. Bad part is I don't think the previous owner knew for sure either, I think he just took for granted that the 3 properties he sold all had easement through the county fire lane because he used it for access for 20 years prior to selling without any issues.

 

[bueller]

Bueller, The property I bought a few years ago had a fenced perimeter. The survey showed the line fencing to be in error by 2.7 acres to the negative. My offer to purchase was a stated amount per acre, so my purchase price was lowered to match actual acres.

I will consider this, thank you. How much did the survey run you?

 

[MoBuckChaser]

We understand the real possibility that we could be looking to resell this property in the not to distant future should circumstances in our lives change. Not going to over pay just because it "feels" like the right property or because it's close to my Pops'. Investment is one of the main reasons we decided to buy off his property instead of building on it (right now). Maybe we turn a nice profit in 10 years on this place and decide to build over there. Who knows.

Can I ask what type of a property it is? Just land? House with buildings? Lots of acres?

 

[bueller]

Can I ask what type of a property it is? Just land? House with buildings? Lots of acres?

land with house and buildings, more than 10 but less than 50 acres

 

[MoBuckChaser]

land with house and buildings, more than 10 but less than 50 acres

The reason i ask is most home loans limit the amount of acreage to under 20 with out a lot of cash down. So make sure you tell your loan officer what you are attempting to buy. May save you all a lot of trouble. Good luck, hope it turns out well!

 

[2ndHand]

I will consider this, thank you. How much did the survey run you?

It was around $1900 for 65 acres, which included steel rods on the corners and wood stakes along lines in sufficient number to be able see the next stake in woods + I have around 100 ft. of elevation change. I was very please with the work preform and wouldn't buy acreage without knowing the legal line boundary.

 

[MoBuckChaser]

Bank may require a survey for the property because of the easement. I would also ask that when applying for a loan! Then see if the seller will pay for or split the costs with you.

 

[bueller]

The reason i ask is most home loans limit the amount of acreage to under 20 with out a lot of cash down. So make sure you tell your loan officer what you are attempting to buy. May save you all a lot of trouble. Good luck, hope it turns out well!

I spoke with a rep from Badgerland Financial earlier today. They are part of the Farm Credit outfit. I told her what I was looking at and they said pending an appraisal, credit score, and balance sheet they would be able to finance the property in question.

 

[2ndHand]

You may be able to make a survey one of the contingencies of the sale..

My original offer had the survey as being paid by the seller, seller refused. I paid it...glad it was done before the close. First surveyor wanted to wait until the snow melted which would have been about a month after close - found a different surveyor. For me it was money well spent.

 

[bueller]

It was around $1900 for 65 acres, which included steel rods on the corners and wood stakes along lines in sufficient number to be able see the next stake in woods + I have around 100 ft. of elevation change. I was very please with the work preform and wouldn't buy acreage without knowing the legal line boundary.

That's practically a fence, sounds like money well spent.

 

[OkieKubota]

Is the property listed by a real estate company or is it just being sold outright by the owner? Who "Showed" you the property when you inquired? House must be worth 70% of appraised value of total which is why it is difficult to buy houses on large acreages. Most banks want the land and house split to a smaller more "saleable" parcel like house and 10/20 acres. We have been going through this stuff for the past 3 years and still haven't found our dream home but we did find our "dream" land that we closed on back in January. Buying the land with no home was much easier than buying a home on a modest property is turning out to be... If the house is on a well make sure it has good water... Our last prospect had chicken litter issues in the well water, the one before that had an easement issue, the one before that had an unsolved double murder committed in it and they never got an arrest or conviction and there was no robbery. We found out about the chicken litter and double murder deal on our own when investigationg the properties. The easement was addressed up front...

On our property purchase we simply bought it with only an appraisal but we bought it from the owner. We did go through an abstract/title company and paid the extra for the attorney/insurance just in case there was some kind of easement from some point in the past. We went through a loan program from a local bank that would loan 100% on raw land with no structures on it. First thing we did after closing was survey and fence...

 

[bueller]

Is the property listed by a real estate company or is it just being sold outright by the owner? Who "Showed" you the property when you inquired? House must be worth 70% of appraised value of total which is why it is difficult to buy houses on large acreages. Most banks want the land and house split to a smaller more "saleable" parcel like house and 10/20 acres. We have been going through this stuff for the past 3 years and still haven't found our dream home but we did find our "dream" land that we closed on back in January. Buying the land with no home was much easier than buying a home on a modest property is turning out to be... If the house is on a well make sure it has good water... Our last prospect had chicken litter issues in the well water, the one before that had an easement issue, the one before that had an unsolved double murder committed in it and they never got an arrest or conviction and there was no robbery. We found out about the chicken litter and double murder deal on our own when investigationg the properties. The easement was addressed up front...

On our property purchase we simply bought it with only an appraisal but we bought it from the owner. We did go through an abstract/title company and paid the extra for the attorney/insurance just in case there was some kind of easement from some point in the past. We went through a loan program from a local bank that would loan 100% on raw land with no structures on it. First thing we did after closing was survey and fence...

It is listed by a real estate agent however around here they really know nothing about the properties they are listing. I have contacted them and asked a few questions but the only info they provided I already knew about from my own research. I went to the property and spoke with a family member who "showed" us the place. I have since talked with him about some of the concerns I had and he was very helpful and answered them the best he could. The house will not be 70% of the total appraised value but the bank seemed ok when I gave them the property info. Although it comes with acres I would not consider it "large acreage".

 

[OkieKubota]

It is listed by a real estate agent however around here they really know nothing about the properties they are listing. I have contacted them and asked a few questions but the only info they provided I already knew about from my own research. I went to the property and spoke with a family member who "showed" us the place. I have since talked with him about some of the concerns I had and he was very helpful and answered them the best he could. The house will not be 70% of the total appraised value but the bank seemed ok when I gave them the property info. Although it comes with acres I would not consider it "large acreage".

Be careful of the bank... sometimes they promise things they can't deliver when time to sign on the line comes... We looked at one house on 40 acres once that the bank said was a shoe in and by the time we got down to brass tacks it was "bust the house and 10 acres off and do 2 loans with 2 different interest rates"...

 

[bueller]

Be careful of the bank... sometimes they promise things they can't deliver when time to sign on the line comes... We looked at one house on 40 acres once that the bank said was a shoe in and by the time we got down to brass tacks it was "bust the house and 10 acres off and do 2 loans with 2 different interest rates"...

Yet another curve ball to watch for in this process, thanks ;)

 

[Jim Timber]

I had a mile and a half of linear border surveyed and staked every 300' plus corners (metal in ground serial numbered monument spikes, t-posts, and wooden markers) for $3600. Money well spent IMO.

 

[Tree Spud]

Bueller ... It has already been commented on; however, I can't stress how important a good attorney is to buying property. I have bought & sold quite a few properties (with & without a building on it). The only time I had an issue was when I trusted the advice of a Realtor on an easement, turned out this guy was beyond his pay grade.

The attorney will help write the offer and insure that the contract is enforceable.

I would make sure you have an attorney review the easement to make sure you fully understand the type of easement, restrictions, ability to maintain, and any limitations on improvements. You want to make sure you can maintain or deliver electrical, cable, phone, utilities, etc back to your property. Understand what the Title company is insuring on the property & easement and what if any exceptions they are taking.

Have them complete a very thorough title search and secure a reputable Title Company and Surveyor. I would offer to split the cost of the survey with the seller. It is insurance for both of you as he is clearly communicating the property boundaries and you know what you are buying. Make sure you have the right to inspect and approve the boundaries.

A good attorney will probably run $1000-2000 from start to closing. Remember, your attorney is the only one protecting your interest in the transaction. This is especially important if you plan on re-selling the property. You don't want a future buyer to discover issues that were not uncovered in your purchase.

There is always risk, but putting the right team together can help minimize it.

Good luck!

 

[bueller]

Bueller ... It has already been commented on; however, I can't stress how important a good attorney is to buying property. I have bought & sold quite a few properties (with & without a building on it). The only time I had an issue was when I trusted the advice of a Realtor on an easement, turned out this guy was beyond his pay grade.

The attorney will help write the offer and insure that the contract is enforceable.

I would make sure you have an attorney review the easement to make sure you fully understand the type of easement, restrictions, ability to maintain, and any limitations on improvements. You want to make sure you can maintain or deliver electrical, cable, phone, utilities, etc back to your property. Understand what the Title company is insuring on the property & easement and what if any exceptions they are taking.

Have them complete a very thorough title search and secure a reputable Title Company and Surveyor. I would offer to split the cost of the survey with the seller. It is insurance for both of you as he is clearly communicating the property boundaries and you know what you are buying. Make sure you have the right to inspect and approve the boundaries.

A good attorney will probably run $1000-2000 from start to closing. Remember, your attorney is the only one protecting your interest in the transaction. This is especially important if you plan on re-selling the property. You don't want a future buyer to discover issues that were not uncovered in your purchase.

There is always risk, but putting the right team together can help minimize it.

Good luck!

Thanks, we are going to take a second and "closer" look at the house and property soon. If we are still interested at that point the next call will be to a real estate attorney. Already have documents sent off to the bank seeking pre-approval.

 

[bueller]

Good advice given

I'd add a note in the contract that no cutting of trees be done and lawn maintained properly by seller until closing.

When we purchased our camp there was 6-7 weeks between the offer and closing. There's 2 acres of lawn The grass grew real tall. We had to get permission to mow. Took 9 trucks loads of mowed grass off the lawn.

More solid advice, thank you!!