Are you considering selling a rural residence or acreage? If so, there are numerous things to consider when selling acreages in Iowa, and there are a few things to consider that are different from selling property in town.
Selling acreages in Iowa now involves certain requirements. The first requirement is to determine what the value of the rural property is. How much should you expect to sell your property for? How are rural property values determined? At Iowa Land Management and Real Estate Company, an acreage market analysis, or brokers price opinion, is prepared for the prospective seller. This study sites sales of “comparable” properties, and, after possible adjustments, are the best indicator of “fair market value”.
In transferring rural residential property with an inhabitable dwelling, the acreage has to have a code conforming septic system in place, or agreement in place, at time of transferring the acreage. The septic system has to be made “conforming” if the inspection shows that it is not. The law doesn’t specify who pays for this, just that the system has to be made conforming. This can be a large expense that is sometimes not anticipated by sellers and buyers.
From a buyers standpoint, many lenders are cautious about lending on acreages if most of the value of the property is not attributable the residence. With acreages, many times there are a considerable amount of acres involved. To some lenders, these assets are not of a great deal of interest to them. So, take some time to visit with your lender about their interest on lending on rural residential properties.
If acreages are sold off of a larger parcel of farm land, a survey is required in order to give a legal description of the acreage property being sold. Different counties have different land use ordinances, etc., that many times dictate how/if parcels can be split off without other consequences. As a seller or buyer, you may wish to inquire with an agent at Iowa Land Management and Real Estate Company about how this may affect your quest for selling or buying your Iowa acreage!