How to Find Your Dream Homestead

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Even federal elected officials from Midwest states are hoping to lure newcomers with enticements of land. Several legislators have banded together to co-sponsor a $30 billion “New Homestead Act.” If enacted, it would provide special tax credits for homebuyers and small business startups in rural America — and student loans would be partially repaid if a graduate settles in a declining area (click here for the current status of the bill).

Look Beyond the Listings

Even if you can’t find a free land deal that suits your needs, there are many ways to find an affordable homestead.

The first tip is to make your intentions known to as many people as possible, says Gene GeRue, author of How to Find Your Ideal Country Home. “Land seekers should contact realtors, banks, lawyers, insurance brokers, appraisers, tax collectors and auctioneers for leads on stressed properties.” If you spot a piece of land you like, find the owner and ask if it’s for sale. They might be more willing to sell than you think. (See “How We Found the Farm of Our Dreams,” below.)

Pick up a copy of the local newspaper to look for advertisements from land brokers or for sales directly by owners. Take out a “land wanted” advertisement in the local paper, and look for property auctions. Beware, though: Auctioned properties are often sold “as is.” Always thoroughly research a property before making an offer.

In the slumping real estate market, foreclosures are increasing, and some rural areas have been hit especially hard. Both lenders and the federal government are eager to unload properties, sometimes atbargain prices. The U.S. Department of Agriculture maintains a Web site where buyers can search state-by-state for properties. Foreclosure buyers also can ask lenders about available real estate.

Land given away by the U.S. government under the 1862 Homestead Act is long gone, but the federal government does occasionally sell public land. Homesteaders will be most interested in public land, most of which is located on Bureau of Land Management (BLM) land in the 11 Western states. The downside is that the agency must sell the land at no less than fair market value. And most plots are located in areas short on water or with poor soils that have little agricultural potential. Your best source for finding federal land is the local BLM office with jurisdiction over the area you’re interested in. State land programs also occasionally sell land.

Abandoned farms may provide another enticing and affordable option. But do your homework first: Seltzer cautions that owners often walk away from abandoned farms because of water problems or marginal soil. But if income from farming isn’t your goal, poor soil may not be a huge concern. Frequently, a small plot of poor soil can be improved with proper management so that it will serve nicely as a garden. If your goals are primarily agricultural, soil surveys are a handy tool to assess the fertility of soil.

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