This Month in the Process of Buying a Farm
I won’t bury the lede: my contract to buy the farm is fully executed!
As of the previous update in late January, the inspections had been completed with the exception of a secondary septic inspection. The first inspection revealed that the first septic field was fully saturated. In order to further investigate, we needed to schedule a secondary inspection in which they would use an excavator to access other parts of the system.
I hesitate to share every detail of this process now, because while we did ultimately come to an agreement and achieve a fully executed contract, it was a little contentious and the closing date is still over three months away.
That being said, this process was all new to me, as it might be new to you! So I will share an overview of what has been happening, and if you’d like to know more details, feel free to ask.
The secondary inspection revealed that the septic system is in fine working order, which was a relief. With all of the inspections completed, my agent and I submitted the “Notification of Unsatisfactory Inspection” form, which is essentially a list of requested repairs and credits.
The NOUI might include things like a request for an electrician to repair a faulty breaker, or a request for a furnace to be serviced. For larger items that the buyer would rather have complete control over repairing (like defective windows or roof issues), it might include a credit towards closing costs.
This part of the process allows for remediation of issues and can be an opportunity for negotiation between seller and buyer. If an agreement cannot be reached within 5 days, the buyer has the right to terminate the agreement and reclaim their deposit.
My NOUI outlined some basic repairs (leaking valves on the boiler and double-tap wiring on the breaker box, among other things) and requested a closing credit as more than half of the windows have failed thermopane seals. We did eventually reach an agreement, though the sellers declined to pay for certain items that are generally considered the burden of the seller.
That leads me to the most important thing I would recommend to anyone who finds themselves in a position that mirrors mine: you NEED a buyer’s agent, ESPECIALLY if the home is FSBO.
It seems like FSBO is increasingly common with general, and particularly with boutique farm properties. I understand the appeal; by forgoing a realtor, both the buyer and seller can save money. Maybe the other party seems super nice and reasonable! However, you probably don’t have enough experience to buy or sell a home on your own.
Yes, a good lawyer could guide you through the legal paperwork, but they are not going to orchestrate the entire process for you, and they are not going to comment on standard protocol. When the transaction turns emotional, they likely won’t participate in negotiation for you. They won’t be present for the inspections, and they won’t step in if things get contentious.
Of course there are exceptions to this; if you’ve recently bought or sold a home, or if you have family or friends with expertise that can have your back, maybe you can handle an agent-free transaction.
The sellers for my property have not bought or sold a home in over twenty years, and it really shows. They were surprised by normal requests and took a very long time to return necessary paperwork, which really elongated this process and added to the stress.
Ultimately, I fell in love with the property, and that cost me. The sellers would have had a very different experience with any other buyer. It will be worth it to me in the long run, so I have no regrets – but I’ve been thinking about how I very nearly skipped hiring a buyer’s agent, and I’m SO glad I changed my mind. She has been worth every penny (even if I’m really paying to help the sellers navigate the selling process.)
Final Costs of Inspections:
- Home Inspection $1255
- Includes radon in air $160, water quality $295, foundation $300
- Septic Inspection $549
- Secondary Septic Inspection $825 (split with the sellers as the sellers were responsible for digging costs per the contract)
Note: If you are navigating the home inspection process, there are definitely costs you could forgo if the sellers have recent records. Additionally, foundation inspection is pretty specific to my section of New England.
Next Steps:
The last major home-buying process event will be the mortgage appraisal, which we will not schedule until April, as it needs to be done within 90 days of closing.
That leaves me to do fun stuff! I have been researching fruit trees, and even ordered a couple of mulberry trees to keep in my family’s greenhouse until I can plant them in the ground. I have also been learning to prune peach and pear trees on the super overgrown mini orchard at their farm.
I also ordered a custom-built scythe from Scythe Supply. This was an exciting purchase, as I have had my eye on one for the past seven years since I first saw legendary market gardener Jim Kovaleski use his to provide grass mulch for his incredible gardens. It hasn’t arrived yet, and I know using it is going to be WAY harder than it looks. Thankfully, I know of plenty of fields that I can practice on while I wait for closing day. I’m hoping that using cut grass mulch from my 8 acres of overgrown field will allow me to reduce watering in my future garden.
As always, if you have any advice for me, I’d love to hear it. Let me know in the comments, or find me on social media.
Talk soon,
KC
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