5 Things to Know Before Buying Your First Farmhouse

Feb 23 2024
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There has definitely been a social movement over the last few decades of people getting out of the city and purchasing more rural homes. Folks that may have never considered a farm before are now looking into little homesteads to start gardening and even raising chickens and livestock. I love our old farmhouse but it did come with its challenges!

Like so many older homes our 1915 farmhouse has gone through a lot of overhauls and additions over the years. It began as a 500 square
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The idea of owning a farmhouse may entice many who crave a life surrounded by nature. In fact, a number of successful professionals from various backgrounds prefer owning a farmhouse where they can engage in fulfilling activities like farming, animal husbandry, and more while taking a break from the stressful city life. If you are also planning to do that, you need to consider the following things before purchasing your first farmhouse.

1.   Ensure You Have Enough Funds to Make the Purchase:

Buying a new property requires a significant amount of money, which individuals cannot always pay straight from their pockets. Bank loans and mortgage loans are great options to consider while financing such purchases. However, you do have to meet specific criteria. The interest rates, down payment, and other factors of such loans often depend on your profession and annual income. For example, mortgage loans for healthcare professionals are available with a down payment as low as 5%. Compare the available loan options and choose the best one while purchasing your first farmhouse.

2.   Have Clarity about the Purpose of the Purchase:

Once you know you have enough funding options to buy your first farmhouse, you need to make sure that you have a solid reason to make the purchase. It is important that you have clarity about what you want to do with the farmhouse once you buy it. There is no point in buying a farmhouse if you are not going to use it. Even though properties increase in value with time, you need to maintain them properly and keep them functional for their value to rise. Unless you want to use the property for farming or as a source of income, investing the money in other assets is better.

3.   Renovation Requirements for the Farmhouse:

Before you buy a farmhouse, thoroughly inspect the property to understand how much you will have to invest for its renovation. Since newly-built farmhouses are usually quite expensive, most people prefer buying old farmhouses. If you are one of them, make sure that the property is built on a strong foundation. Evaluate whether the flooring and walls require additional work. Also, you may need to take care of termite, mold, or critter infestation to make the property livable. You can fix these problems with DIY hacks. However, if you do not have the time, consider hiring a professional team for these issues.

4.   Access to Essential Services:

While inspecting the property, you need to make sure it has access to all the essential services – such as electricity, water, easy connectivity with the highway, a modern HVAC system, etc. It is difficult to imagine a life without electricity these days. Since many farming operations are now performed using electrical tools and equipment, ensure that the property has a stable electricity connection. You also need to clarify whether the property has easy access to water. Even if it is well water, check if the well is properly maintained and is not a source of illness waiting to happen.

5.   Legal Documents and Permits:

Lastly, you need to ensure that every legal document and permit is available for the property. Firstly, check if you are getting a release certificate from the bank if the property was up for resale. Next, you need to make sure no deeds are left unclear before you have legal ownership of the farmhouse. You also need to confirm that you have permission for further construction on the land. And if you are interested in animal rearing, you need to have authorization for the same. Lastly, you need to talk to your lawyer to get the ownership transfer process done hassle-free.

Conclusion

Before investing your hard-earned money into an asset, whether it is real estate or something else, you should always perform due diligence. And since this is your first farmhouse, you need all the knowledge you can get about buying, owning, and maintaining an old property in the United States of America.

 

July 2023 - Our June blog post came out nearly a week BEFORE the end of June and a lot sure happened in those few days lol.
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