Buying rural property is different and often more complex than buying property in the city.  Following are some key factors to consider before you make an offer.

• Infrastructure
• Tax Advantages
• Environmental Factors
• Codes and Restrictions
• Insurance
• Local Land Use
• Property Improvements
• Maintenance Costs
• Financing Country Homes
• Local Advice

Water and sewer services are not available in the country.  Furthermore, access to electric, phone, cable television and high-speed Internet services may be limited. Before buying or building a home in the country, ask about trash pickup, road maintenance and school bus service.

Every state offers some type of agricultural property tax relief that lowers the taxable value of farmland.  Check with the local tax assessor to determine if your potential property will qualify for a tax credit, special appraisal or direct exemption. If there are existing ag-use tax exemptions, learn what you need to do to maintain those exemptions. Unlike some commercial lenders, Farm Credit does not require the buyer to rescind the exemption before we make a rural home loan.

Two critical environmental factors could affect how you use your land:

• The presence of endangered species, which can impact your ability to clear brush, construct buildings and harvest timber.
• Environmental contamination caused by previous landowners. Federal law holds landowners accountable for cleaning up environmental contamination, even when it occurred before they owned the property. By determining any environmental hazards before purchasing property, buyers can obtain some protection from liability for environmental clean-up costs.

If you plan to subdivide the land you buy, check for any local government restrictions on the property. County subdivision laws and extended territorial jurisdictions of surrounding municipalities may apply. Consider how restrictions could affect you and how they could be viewed by future buyers.

Some insurance carriers will not write homeowner’s coverage outside the city limits. Farm Credit lenders and local Realtors usually know which insurers offer rural property insurance.

Pay attention to local land use. An intensive livestock operation nearby could affect your air quality, while a proposed highway in the area could potentially increase noise levels and change traffic patterns.  Find out if commercial development is allowing on neighboring tracts — before you buy.

Improvements such as fences, wells, barns and camp houses can be expensive to build new, so don’t underestimate the value of existing improvements. To install a septic system or water well, you probably will need to obtain county permits first. Before buying a tract without water or sewers in place, find out construction costs the typical well depth in the area, septic system requirements for the soil conditions and construction costs.

The cost of owning rural property does not end with the mortgage. Plan for ongoing expenditures on maintenance and improvements, such as fences, ponds, outbuildings, landscaping, repairs and equipment.

On acreage properties, most mortgage companies can only finance up to 10 acres. Farm Credit can finance the land and the home in one loan, which saves closing costs.

In the country, you can’t always turn to the yellow pages for information and services. Seek the advice of Farm Credit loan officers, local Realtors, county Extension agents and others who are familiar with rural real estate and know the community well. They probably will know the local market and history of area properties, and can often put you in touch with contractors and service providers.