Buying land in Missouri can be an exciting and rewarding experience whether it’s used for recreation, investment or development. But weighing the pros and cons of this purchase should be done before making any final decisions. Keys to success in this process include clearly defining goals for the parcel, carefully researching options using online and local resources, evaluating options against key criteria, negotiating fair price and terms reflective of market factors, and properly finalizing purchase paperwork plus transfer of ownership.
In addition to the above factors, assessing the location and access to the property will be vitally important. For example, a remote land parcel without road access could be expensive and difficult to maintain over time. Conversely, a land that is located close to amenities will be more attractive to potential buyers when it comes time to sell.
Likewise, the type of water rights associated with a parcel will impact its use and value. The two main types of water rights in Missouri are riparian rights, which are given to anyone who owns land that touches a body of water, and prior appropriation, which gives the first person to take water for a beneficial purpose a right to continue to do so. Both types of water rights can significantly impact a piece of land’s value, so understanding the nuances and laws surrounding water usage is critical.
For those who are considering purchasing pros and cons of buying land in Missouri for farming purposes, it’s a good idea to consult the region’s specific zoning regulations regarding what types of crops can be grown and other restrictions on agricultural activities. Also, consider the local weather conditions as extreme heat and cold can affect crop production.
Another issue to be aware of is the cost of septic systems, electric utilities and other improvements needed for residential and commercial use of the land. These costs can add up quickly, so be prepared for the unexpected expenses that may come along with your purchase.
When it comes to buying land for recreational or investment purposes, a cash purchase can offer distinct advantages. Paying with cash can expedite the closing process as it removes the financing contingency and allows greater negotiating leverage on price/terms. Additionally, it can help avoid limitations and higher interest rates associated with financing, and it conveys serious buyer commitment to sellers.
Identifying the best parcel for your desired use, negotiating fair price and terms reflective of current market factors, and correctly completing the required legal transfer paperwork is crucial to successfully buying land in Missouri. For those new to this process, partnering with an experienced MO land broker firm can provide significant benefits and a smoother path to land ownership.