Page 28 - WCA September Ketch Pen 2020

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Managing Expectations with Buying A Farm
Step by Step to Find the Perfect Place
By Allison Trimble, Coastal Realty
These past months, we have seen increased real estate activity. There has been a trend towards farm
to table food sources, and movement towards a more rural lifestyle, in general. Skyrocketing property values and historically low interest rates have also been a cata- lyst for farmers and ranchers to invest in new, or larger, operations. Especially during these convoluted times, the process can feel a little overwhelming. Even if this is not a first purchase, the steps become blurry or are forgotten. Here is an outline—a handbook—of what to expect and consider during each step of purchasing a new farm or ranch.
Assemble the Team – Competent Realtors and lenders have well-established relationships that can become extremely important in the process. Prob- lem-solving skills (especially on multifaceted AG properties) and resources can make the difference in a dream coming to fruition. There are many profession- als involved in the successful purchase of a property and having a team that works well together is a sub- stantial benefit. Don’t be in a rush to work with the first professional that responds. It’s important to deter- mine if a Realtor is simply exceptionally responsive, or available due to a lack of clients. After selecting a Re- altor and lender, trust that they have their clients’ best interest in mind. This process can be extremely stress- ful on all parties. It’s crucial to ask questions and have open communication but keep emotions in check. I tell my clients that I don’t know what unexpected thing will pop up during the course of the transaction, but as
with ranching, Murphy’s Law often applies. Something is sure to come up that is frustrating or upsetting. We will work together to keep everything moving forward.
Financing – The process begins with the lender who reviews income, tax returns, down payment avail- able, and credit score and helps decide on the appro- priate loan program. Based on income, and monthly payment preference, the lender will help determine a purchase price budget to work within. The lender will also discuss loan closing costs and will disclose inter- est rates and terms of the mortgage. It’s helpful to go through this prior to beginning the home search. It’s discouraging to look at properties that end up being out of budget. The lender will provide a pre-approval letter that goes with any offer to give the seller assur- ance of the buyer’s strength.
Property Search – The buyer and Realtor work together to set criteria that meets the needs of the buyer. It’s ideal to rank priorities, because especially with AG properties, the features of properties available can range dramatically. It’s important to work with a Realtor who is well versed in Farming/Ranching needs, experienced in land use, water rights, and connected locally for AG services, and contractors. The Realtor will likely set up a search for the buyer on the Mul- tiple Listing Service that will show what is currently available on the market, and then will alert when new properties come on the market. In a competitive mar- ket, it’s important to see properties as soon as they are available as the desirable listings tend to sell quickly.
Ketch Pen www.washingtoncattlemen.org
September 2020