Updated Sept. 1, 2023
Land has gotten expensive. For new homesteaders, the cost of owning a farm can often deter them from their dreams. Rest assured there are many creative ways for you to find inexpensive land to get started on your goals of self-sufficiency.
Land, without any buildings, is often sold in rural areas when farms have been subdivided. These divisions may have tracks anywhere from three to one hundred acres. They are sold via land contracts (owner financing) in addition to conventional bank mortgages, or even real estate offices. Sometimes they have foreclosed properties.
I have purchased two farms, one in 1993 and the other in 2003, with the intent of building a homestead, living off-grid, and being mostly self-sufficient. I spent 29 years living off-grid.
Check out my books on Amazon
My financial status had me looking for land that was cheap. Ironically, even though I was a full-time teacher the banks said I did not make enough money for a conventional mortgage. And they looked down on me for being a single parent.
Initially, I looked at places with homes, then those with just a barn, and then learned that what was in my price range was just land. Buying just land has many advantages.
This article will look at buying land - cheap land - for homesteading purposes. Typically this is just land and will not include any buildings, grid hookups, or water on the property. Amenities and buildings, even older fixer-uppers often add considerable cost.
The early days of my farm. Sometimes I forget how much open space there was! This area became an orchard.
What Are You Looking For?
This is a very important question that you must consider first. Take some time to mull over what you want and need. When buying land it’s important to see the potential of the property. So essentially you should consider what you need immediately and what you may need in the future.
For example, when I purchased my current farm there was no water or electric lines on the road. The road was (and is) a private, gravel, dead-end road with no mail or garbage service although they were available at the end of the road a half-mile away.
The electric company did put up electric poles as others moved onto the road however water lines were never added due to it being a private road. This was due to the expense of running lines.
So think about what you need now and would want in the future. My house had solar panels and gutters for water collection and I knew we were capable of “roughing” it until those were in place.
However, that first summer I hauled water from the creek for animals and garden plants, we slept in a tent, used flashlights and rechargeable lanterns to see after dark, and cooked on a propane camp stove. All the while building a cabin by day.
Read my article EVERY DROP COUNTS: RAINWATER HARVESTING 101
Questions To Ask Yourself
Do I want immediate access to electricity and water?
Do I want to raise livestock or have a large garden? You need appropriate spaces for those.
Do I want a cabin in the woods where I can not see any neighbors?
Am I willing and able to devote the time and money to develop or build the things I want? (Newsflash - homesteading is hard work!)
Zoning, mineral rights, and access to water are all important considerations when buying land.
Rural areas often have poor cell phone and internet services. If you are homeschooling, self-employed, or just need to be connected this can be a deal-breaker. Find out what services are available or how far t s to the nearest public library.
How To Find Cheap Land
Disclosure: I recommend you follow through to make sure any company you deal with is legit and retain the help of professionals such as deed locators or an attorney.
Often just land does not show up on a realtor’s website. Those flashy websites often feature a unique or modern home. Barron land is not very exciting to look at.
Websites like LandWatch.com can be filtered to show options in a specific state with owner financing.
Look at rural newspapers. Often the county seat has a weekly print paper with a classifieds section. This can be a great way to find things that are being sold in local auctions or by owner financing. Many rural areas also have a shopper’s guide or small newspaper devoted to sales ads and business information.
Take some time to drive around in an area you are interested in living. Not only is it important to get a feel for the area but many people just tack up a hand-lettered FOR SALE sign at the end of the road.
Never discount social media and local ads. Craigslist and Facebook both offer land listings. You can even do a land-wanted ad. Also, Facebook groups can give you the opportunity to ask people about their area and if they know of any land for sale.
Land Contract or Owner Financing
A land contract, also called owner financing, is a written sales contract for a piece of property. With a traditional mortgage loan, you borrow money from a bank. With a land contract, you borrow money from an individual or small company.
The seller or land contract holder receives a down payment and then monthly payments. They may also charge an interest fee and taxes on the property.
The buyer does have a title to the property but it is referred to as an equitable title until the land is paid for. The seller holds the deed until the property is paid off. I strongly suggest that you file your land contract paperwork with the county. This establishes you as the legal buyer.
Advantages
Great for lower-income or people with bad credit who don’t qualify for a bank loan.
No credit or background checks.
Low down payment and lower monthly payment. This can enable you to free up some money for building projects.
Flexibility - you can work with the seller on the amount and length of payments to fit your budget.
Typically, immediate access to land so that you can jump in and get started homesteading.
Lower cash outlay allows you to put money into buildings, establishing an orchard, or other improvements.
Fewer rules on what type of housing you can have or build.
Disadvantages
A bank has to follow more rules and regulations that protect consumers. Land contract sellers are bound by some regulations but not nearly as many as banks. Land contracts often charge very high-interest rates that may be well above national averages and don’t necessarily give you any services for those fees.
Neighbors - I have had some pretty bad neighbors in the past. Check out your neighbors and make sure people are in line with what you want to do. For instance, if you target shoot it's good to make sure people around you are ok with that.
Road maintenance - this comes into play if the property is located on a private road The land company may state that they will care for the road and then they do not. In my case, one of my neighbors has taken over road care. This may mean you are paying (via the interest) the land company for a service you do not receive.
Foreclosure - a land contract owner can foreclose on a property if you don’t make payments. They must follow the legal requirements the same as any other lending institution.
Typically all the “rights” such as timber, mineral, and commodity crops are sold off and can not be used by the buyer. That does not mean you can’t grow crops to sell it just means you can’t participate in those programs.
Rent To Own or Lease With Option To Buy
This is another form of purchasing that does not require a traditional mortgage. This option is more used in urban areas, however may be used for land as well.
With this option, a portion of the rent is applied to a purchase of the property down the road. Normally this is a smaller amount of money - one hundred dollars or so. So legally you are viewed as a tenant, not a buyer.
Advantages
Gives you an opportunity to test drive the property and neighborhood
You have time to put some money back for a down payment if you decide to purchase
Disadvantages
You can’t make any permanent changes
You could farm the land but not put up any structures or remodel existing ones without owner permission.
Pay Cash
You can simply pay cash for your land. This may mean settling for a smaller parcel or not meeting your ideal. However, it will get you started quickly with no mortgage.
Many areas of the country have land for sale for less than $4000 per acre. So if you can raise $10,000 then you could get one to three acres which is enough for a big garden, orchard and some chickens and goats.
Additionally, cash talks, and you may be able to get the price lowered when you pay in full. As with any property check out the zoning and make sure you can build the style of home you want and raise animals.
Advantages
Cash appeals to the seller and they may be eager to make a deal
Gives you some negotiating power
Cash is a quick sale with no waiting
Disadvantages
You must have the cash and be ready to hand it over when a deal is struck
Smaller parcels of land sometimes have zoning issues
Check out my YouTube Channel for videos on organic gardening, homesteading, and wildlife conservation
What To Look For
So you have an idea of what you want in a property and you have a budget. Now you are ready to start looking for land. You want to consider each piece of land with a set of goals.
Commute - I had two rural counties that I was looking at in part because they were about thirty to forty-five minutes from my current job. For me, that was an ok commute.
You may also want to consider your travel time to stores, the library, kids dance lessons, church - whatever your family will do on a regular basis.
Amount of land - I knew that I wanted at least ten acres because that would make me a “legal” farm for tax purposes. I ended up with twelve acres which also gave me some of the privacy I desired. I later added another four.
Topography - I was looking for a mix however, I knew I wanted at least three acres to be semi-level sunny locations for gardens, an orchard, and a barnyard. My land had a nice mixture of fields, woods, and most importantly a creek.
One of the big sellng points for me was having a creek that runs through my property.
Water - buying just land usually means there is no public water yet on the property. In some cases that means there is a water line on the road and you have to pay to tap into it.
Other times in my experience there is no public water available and you need alternatives. A pond or a creek on site is perfect. I was happy to find a property with a creek that could be used to water gardens and livestock. My overall plan was to develop a rain catchment system.
Road Access - Road access is important. If the property is landlocked then you need to look into the road easements. Also, where are you located geographically in terms of winter road maintenance? Both farms I had were on private roads, so we don’t receive any plowing in winter (not that Kentucky gets that much snow). Also as a teacher, if the roads got bad school was canceled and I worked from home.
Zoning - an all-important thing to learn about. You want your land to be zoned agricultural so that you can grow crops and raise animals. If like me you want to have Livestock Guardian Dogs, you need to make sure there are no dog restrictions. Some communities have restrictions on larger or possibly aggressive breeds.
In addition to being zoned for farming, you need to look into building codes. I was lucky. In my rural area, there were only two requirements. Electrical Inspections and Septic Tanks.
Incidentally, their electrical inspections did not cover solar (DC) and I fought (but lost) the septic tank requirement.
You can read more in my blog Composting Toilets Are Great: No Sh*t.
Boundaries - You need to go to the county courthouse and find out the official property boundaries. Don’t believe the realtor or the landowner. They may not know either but don’t want to look dumb.
Author, Ame Vanorio has 29 years of experience living off-grid and farming organically and is an author, and certified teacher. She is the director of Fox Run Environmental Education Center and a licensed wildlife rehabilitator.
An outdoor kitchen is great for those persons living off-grid and needing some additional cooking options. It also makes a wonderful place to gather with family and friends.
An outdoor kitchen can provide you with a place to cook when the weather is hot or even in the dead of winter. You may have a set up with a grill, a campfire or a brick oven. Put out a table and chairs, some flower pots and voilà. I am going to share with you the example of what I did and building photos along the way.