It has always been my dream to own "my own little piece of the world". We live in North Carolina, and would like to own some property that we can camp on, garden, mainly recreational. I would like to build a small cabin on it, but don't see myself living there full-time anytime soon. We would like to purchase land within 60 miles of our house so when we do work on it, we can drive to it quickly. Anyway, I happened to find land advertised today that fits what we are looking for (keep in mind I haven't seen it yet, just read about it and talked to the realtor).

It is 16 acres with 5-6 acres being heavily wooded. It had a stocked pond (abt. 2 acres), but with no rain recently, the 10-12 foot lake has lowered to 4-5 feet. It has a 95 foot well, power pole, and a base put in for a mound system septic system (the realtor said it would cost abt. 2500-3000 to put in a 20000 gal. septic system). It includes a 3 stall shed and a tractor with a 60inch bush hog, and has an old 14 x 60 mobile home which is recommended for storage. They are asking $27,000 for it.

This sounds like what we are looking for, but to be honest, I don't know if we can swing it yet. We are very new at this, but so excited at the prospect!!! I am looking for any and all advice you can give me!

What questions do I ask? What would be an appropriate counter offer (I know someone offered 17,000 cash when it was listed as 12.4 acres and it was turned down) With bank financing, is it considered "investment property" since there is no home on it? How much do you think we'd have to put down?

We are going to see the land tomorrow. What do I look for?

Any and all help would be greatly appreciated! Thanks!

-- briches (vesely@webtv.net), December 27, 2001

Answers

You might be able to buy it as vacation property. Do the owners have an appraisal you can look at (the realtor may have a copy)? Take a look at the county records on the property to find out what the owners paid and how much they owe, if anything. Also check that proper permits (if required) were taken out for the septic, and ask a septic person how much it would cost, don't believe what a real estate agent tells you.

Ask about comparable properties (comps) to find out if their asking price is out of line or not. The other thing to keep in mind is that they may or may not be serious about selling--some people are like that, and won't sell until they get their price. These properties stay on the market for years.

Investment property has to do with what you do with the property. Were you planning on renting it out in the meantime?

-- GT (nospam@nospam.com), December 27, 2001.

I know how you feel because I felt the same way when I looked at my first piece of property many years ago.

Ask the realtor if the seller would hold mortgage.You might get a better interest rate. A 20,000 gal septic system is big enough for 10 families. Do you mean 2,000 gal?

QUESTIONS TO ASK 1. Is there a recent survey? (Last 2 years)If no survey have seller get one. I almost got burned on last 2 properties I bought because of old surveys. 2. Has water been tested? If not get it tested before you sign anything. 3. How much are taxes? 4. How is it zoned? 5. Is building permit required? What is process for getting a permit if required? 6. Does well have a pump in it? 7. How many gallons per minute will the well produce? The well driller will know. The well casing should have a tag on it specifing the GPM. 8. Are there any right-of-ways thru property. You don't need someone going thru middle of your property to get to theirs. 9. Schools...where are they?.... if you have children 10. Are there any restrictions on type of dwelling you can put up? animals? etc etc. Any restrictions of any kind? 11. Why wasn't the septic system completed? Might be more to it than buyer did not want to spend the money.

Get your own estimate for cost to complete septic system and again ask what permits are required to complete.

You are basicially buying un-improved land (no livable house) so a good price comparison would be to compare cost per acre of similiar sized acreage near where this property is. Example if raw land (no improvements) is selling for $500/acre and the buyer is asking over 3 times that, which he is, then that is way too much. Even if you subtract the cost of the well (around $900 based on prices in my area) shed, tractor and power pole.

What is make, model and condition of tractor? let me know and I will get you a fair market price.

DO NOT sign anything until you have an attorney look at the documents BEFORE you sign them. Email me directly and I can show you how to get that done very cheap...using a top notch law firm.

Hope this helps a little.

Good Luck Bill

-- Bill Vaughn (ewvaughn@mtneer.net), December 27, 2001.

Although you are very excited about the potential of this property, you should approach it as a business deal. You need to be willing to walk away from the deal if it is not right. There are probably other good properties out there, or if not, another will come along. Don't let your dreams be dashed by buying a property that turns out to have problems. The other advice above is excellent. Remember the realtor does not work for you. Proceed slowly.

-- Pigfarmer (romney@quik.com), December 28, 2001.

So far, excellent advice (THANKS) Yes, I did mean a 2,000 gal. septic tank. I know the well has a pump, but don't know how fast it is yet. Thanks again for all of the information! I appreciate it!

-- briches (vesely@webtv.net), December 28, 2001.

Hello briches,

Never be too hasty when it comes to buying land. If this is the first one you are actually looking at, I would suggest looking at several more before making a decision to buy. The rule of thumb, ( I have been told) is to look at about a dozen properties and then decide among those you looked at what would be the ideal one.

Some people buy on impulse and later they regret it because, "what they thought was ideal", turned out to be a nightmare! It is just my inexperienced opinion on making such a purchase. I just do a little comparison shopping until I get the most for my money.

Sincerely,

Ernest

-- http://communities.msn.com/livingoffthelandintheozarks (espresso42@hotmail.com), December 28, 2001.

Here in Minnesota, the septic rules cange every year or two, and whenever the land changes hands, you need a new approval. If no septic is allowed, the land is dead - can't build a dwelling on it. If it's not built to this year's standards, then you need to totally rebuild it.

Don't know if things are so severe down south, but I would _really_ check into that issue. There could be a reason that it wasn't completed, and you could end up with dead land.

--->Paul

-- paul (ramblerplm@hotmail.com), December 28, 2001.