Buying Horse Property and
Horse Farms...
Find your "Dream Property" before finding out how much you qualify for!
When you’re buying a Horse Farm, you’re not just buying a home, you’re buying a way of life. Unfortunately, far too many buyers go about their search backward. Buyer’s most often start shopping by looking at Open Houses and eventually picks up a Realtor who may or may not be knowledgeable about this unique type of property. The Realtor assists the buyer in narrowing their search, they find the "perfect" property and submit an offer.
Once the buyer and seller have agreed to a price, the buyer goes to a bank or mortgage company to obtain a mortgage and sometimes learns they do not quite qualify for the loan, or that the loan is much higher than they expected to pay. Sometimes a buyer doesn’t qualify because an old account shows up on the buyer’s credit report. Although this might be correctable, it could take 60 or more days to correct, and the seller may not wait that long to close the sale. Buyers can also be rejected because of high debt ratios from car loans, high balance credit cards or student loans. You may also find that many lenders find it difficult to loan money on farms or ranches because they don’t always meet the stringent criteria for the bank’s loans. Either way, the buyer’s end up heart broken when they lose the "home of their dreams" and usually have a hard time finding anything else that measures up to their expectations.
The best way to begin the process of finding a horse property is to first find an agent who really knows and understands horse properties. Then have that agent find you a lender that understands farms and has done loans like this one before. That lender should pre-qualify or pre-approve you for a mortgage so you’ll know exactly how much you can spend. Many lenders can give you a full pre-approval for a mortgage within 24 hours! One national company, Century 21 Mortgage, can often give you an answer within an hour. Try them at 1-877-846-6969.
Also, once you find a property, if the seller has several interested buyers, your pre-approved offer will almost always be considered a stronger offer! Pre-approval gives the buyers an estimated amount of cash needed to close the offer, so you’ll know up front just how much you’ll need to save for settlement. And if you have credit problems, you’ll be made aware of them so your Real Estate Agent can assist you in cleaning them up before finding the perfect property.
ALWAYS Require a Seller’s Disclosure!
How old is the roof? What? You forgot to ask? If the roof has only one year of life left, you should be made aware of this before you make an offer!
Any offer you make on a property should have this listed as a contingency and you have a few days to review the contract and make certain you know the whole story.
Some common questions on Seller’s Disclosures include:
 | Do you get water in the basement? |
| How old is the roof? |
| Are there buried oil tanks or other underground storage tanks on the property? |
| Have there been problems with the furnace or heating system? |
| Has there ever been termite damage to the house? |
| Is there encapsulated asbestos anywhere in the property? |
Find out in Advance Who Your Agent Represents!
Most buyers think that the agent working with them is actually working for them. This is often not true! Unless you are working with a "Buyer Agent" or "Buyer Representative", that agent is legally working for the seller. If you do not hire an agent to represent you, the agent has a fiduciary responsibility to the seller. Laws differ across the United States, so you should consult your agent and ask.
Don't Overspend on the Farm you buy!
When you hire a professional Buyer’s Agent, they can guide you to a property that will give you the most for your money. They will study the marketplace and create a "Competitive Market Analysis" to determine how much the property you’re interested in purchasing is actually worth in today’s marketplace. We want your "Dream Property" to be a real deal!
Make SURE you Realize the Costs of Maintaining a Farm or Ranch!
Many buyers don’t realize the actual cost of owning a large property! The mortgage, insurance, taxes and utilities are only the start. Before you buy a property like this, make sure you understand the liabilities you might be facing when buying!
