Get an independent estimate of the value of your land. It is almost impossible to be impartial about the value of your own farm, especially if you do not rely on actual sale data from the courthouse. Thus, retaining an appraiser or a real estate broker and get some facts to work with. You may start your search by contacting farmers, investors, real estate agents, state and federal agencies. The tips below will come in handy to prospective property buyers looking for rural land for sale southern Colorado.
Select a farm close to the local market and distribution channels. Consider if the farm situated in a depression with its own micro climate, soil types, flood zones, topography, hydrology among other critical features. Accessing your soils information before closing on the farm is also a good idea. Type of soil will largely determine the crops to grow. It would be wise to test your soil for residues and other heavy metals that may inhibit your ability to grow organically.
If you are going to grow crops, consider the availability of water before you buy the farm . Water is essential for drinking, washing, cooking and watering plants. Find an agent who knows about farming and the details that are important, like soil types and water rights. It is extremely critical you understand water rights and usage.
Read the water certificate and understand what it means in terms of usage of water and the area allowed for irrigation. Landowners must irrigate at least once every five years in order to retain the validity of their rights. You need to know the year your rights date back to and the sources of water to your property. Know if your rights are currently valid and active. Check if you have ponds, creeks, or wells that you are legally able to use to irrigate.
Where the property has been in your family a long time with no adjustment in the basis, you could pay a lot of capital gains tax. Check with your tax assessor your position and establish development limitations, depending on zoning status. Liaise with your accountant on issues of taxation. The appraisal method used to determine taxes has been yet another potential obstacle that could affect price negotiations.
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.
Inquire with the relevant authority before buying the property on the mapping of the minerals in the area. Mineral ownership can be important to farm buyers, especially when less than half of the minerals transfer with the ownership. A mineral owner, or the lessee, can enter the property to extract the minerals, without obtaining permission from the owner.
Environmental issues may signal problems for property owners. Therefore, buyers should identify potential problems before closing the deal. The presence of harmful substances may create a liability to a person taking title to the property. Owners of land with endangered creatures is likely to have strict restrictions on land use.
Select a farm close to the local market and distribution channels. Consider if the farm situated in a depression with its own micro climate, soil types, flood zones, topography, hydrology among other critical features. Accessing your soils information before closing on the farm is also a good idea. Type of soil will largely determine the crops to grow. It would be wise to test your soil for residues and other heavy metals that may inhibit your ability to grow organically.
If you are going to grow crops, consider the availability of water before you buy the farm . Water is essential for drinking, washing, cooking and watering plants. Find an agent who knows about farming and the details that are important, like soil types and water rights. It is extremely critical you understand water rights and usage.
Read the water certificate and understand what it means in terms of usage of water and the area allowed for irrigation. Landowners must irrigate at least once every five years in order to retain the validity of their rights. You need to know the year your rights date back to and the sources of water to your property. Know if your rights are currently valid and active. Check if you have ponds, creeks, or wells that you are legally able to use to irrigate.
Where the property has been in your family a long time with no adjustment in the basis, you could pay a lot of capital gains tax. Check with your tax assessor your position and establish development limitations, depending on zoning status. Liaise with your accountant on issues of taxation. The appraisal method used to determine taxes has been yet another potential obstacle that could affect price negotiations.
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.
Inquire with the relevant authority before buying the property on the mapping of the minerals in the area. Mineral ownership can be important to farm buyers, especially when less than half of the minerals transfer with the ownership. A mineral owner, or the lessee, can enter the property to extract the minerals, without obtaining permission from the owner.
Environmental issues may signal problems for property owners. Therefore, buyers should identify potential problems before closing the deal. The presence of harmful substances may create a liability to a person taking title to the property. Owners of land with endangered creatures is likely to have strict restrictions on land use.
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