Start with the Plan, Not the Property

Those who find success with their rec land ownership goals are willing to do essential work up front to make the buying process go more smoothly. Tyler Schmidt, a Loan Officer with Compeer Home, has extensive experience guiding his clients down the path to rec land ownership. In a recent conversation with Tyler, he stressed the importance of starting with the plan, not the property. This concept is the main theme of the on-demand webinar he just completed with Compeer Home entitled “Starting the Path to Rec Land Ownership: A Guide for Making Informed Decisions.”

Tyler compares buying rec land to going to the grocery store. If you go to the store when you’re hungry, or you don’t have a list, or you don’t have a menu planned for the week, you are much less likely to leave the store with the items you need for your upcoming meals to be successful.

Likewise, the rec land purchasing process typically should not start with a specific property. Clients need a “shopping list” first. Prospective buyers should start by preparing a specific list of wants and needs before they begin searching for land. This effort in the early stages will be essential in guiding them to make an informed decision about the right property for them that also fits within their budget.

Tyler suggests clients record their answers to these questions:

• How do you plan to use the land?
• What property features matter most?
• What are two non-negotiable priorities for your land?
• How might your land use goals change over time?

When clients start to answer these questions for themselves, they can begin to determine more specific details about the type of land they want, their preferred locations, and how many acres they desire. Then, they can use Compeer Home’s free Mortgage Calculator to begin to understand what they can afford. At that point, they’re ready to start looking for specific plots of land.

As Tyler shared, “When buying recreational property, it’s really easy to fall in love with the first one you see and say, ‘This is the one, I would love to purchase this.’” Instead, Tyler stresses that clients should, “take your time, look over your options, find a property that actually fits your needs and wants, and move in that direction to make that purchase.”

Compeer Home has a new Rec Land Workbook that guides clients through this information-gathering process to better prepare them to talk with a lender and begin to find specific properties to purchase. This free guide can be completed at the client’s own pace, or they can watch Tyler’s webinar and let him guide them through the workbook.