As I embarked on my search for a homestead, I was enamored with the idea of restoring an old farmhouse. The allure of history and character was undeniable. However, as I delved deeper into the process, I quickly realized that buying an old farm was far more complex and costly than my initial enthusiasm suggested.
Despite this reality check, my journey taught me valuable lessons about evaluating old farmhouses and what to look for in a potential purchase.
More recently, my brother and his family took the plunge, acquiring a charming 1927 farmhouse at a reasonable price and embarking on a renovation project.
Drawing inspiration from their experience and my own experiences trying to buy a farmhouse, I want to share some key considerations to keep in mind before making the leap.
The Catch With an Old Farmhouse
In recent years, restoring old farmhouses has become an increasingly popular endeavor. However, this growing demand has led to a significant shortage of affordable properties that are primed for renovation. The grand, sprawling houses with their charming facades and rustic charm are usually snatched up by well-heeled buyers the moment they hit the market, leaving little room for those on a budget.
What remains in inventory or is listed at a lower price point typically requires extensive work and significant financial investment to bring them up to code. Alternatively, some properties may be hiding secrets that need to be uncovered before making a purchase decision.
Unearthing Those Dark Secrets
When it comes to uncovering hidden problems in older homes, there are often unexpected surprises lurking beneath the surface. Sometimes these secrets take the form of hazardous materials like lead paint or asbestos, which demand specialized removal methods and can be a significant financial burden to address safely. In other cases, the surprise is literally underground – old foundations, hidden water tables, or unmarked utility lines that can disrupt the flow of life in your new home.
Deeded Mineral Rights
In some instances, older properties may have conveyed mineral or natural gas rights to corporations, often accompanied by existing infrastructure for extraction. However, in other cases, these rights might be owned but remain dormant, awaiting potential future exploitation.
This can lead to a significant concern if you’re planning your homestead layout for the long-term, as these companies could potentially start extracting resources directly beneath the land you’ve carefully improved or where you’ve built important structures like barns.
Waste Tank Leakage
The inspection process revealed several properties with hazardous septic or livestock waste tank leakages, stemming from neglect and lack of maintenance. The tanks and related plumbing systems had deteriorated, posing serious risks to occupants. In these instances, buyers were forced to factor in costly remediation measures as a condition of the sale, adding $15,000 to $30,000 to the overall purchase price.
Property Line Issues
In our experience, one of the most significant challenges when buying a farmhouse is navigating property line issues. This issue often arises on older farm properties that have been divided among family members, sold, and then re-sold. The result is a lack of investment in surveys due to the decline of rural areas’ appeal, leading to confusion about property lines.
In some cases, disputes escalate into costly court proceedings or necessitate extensive deed research, ultimately adding complexity to an already arduous process.
Right of Access Issues
In our assessment of two properties, we observed that the driveways leading to the houses were situated on parcels of land previously sold to different entities. This resulted in the houses being effectively isolated from the main road. To gain access, the new owners would have had to undertake significant clearing work and install lengthy driveways. Alternatively, they could explore the possibility of negotiating driveway rights with the adjacent property holders.
Public Infrastructure
In many rural areas, public infrastructure development has often taken precedence over agricultural land use due to its relative affordability and ease of installation. Consequently, numerous road constructions and underground pipe installations have been built on or through farmland, particularly abandoned land. This has led to a peculiar phenomenon where several farms we studied had their arable plots fragmented by roads or utility corridors, resulting in awkwardly divided usable land parcels.
Legal and Financial Considerations
Beyond addressing on-ground issues, it’s essential to acknowledge the intricate web of legal and financial complexities that can arise. These considerations require just as much attention to ensure a successful project outcome.
Probate Issues
When vintage farmhouses become available for sale, it’s often the result of a life transition among the original owners or their heirs. This can be attributed to various factors such as the passing of time, probate proceedings, or family disputes regarding inheritance and property distribution.
Multiple Owners
When it comes to selling a farm or land inherited by multiple children or grandchildren, the complexity of the situation is amplified. In order for the sale to go through, all parties involved must be in agreement. This can lead to a multitude of issues, including disputes over the asking price, compromises that need to be made, and disagreements about whether repairs should be undertaken to facilitate the transaction.
Negotiating with multiple sellers, each with their own motivations and emotional connections to the property, can prove extremely challenging. As a result, you can expect the closing process to be significantly longer and more arduous than when dealing with a single owner.
Zoning Issues
When evaluating properties related to farming, a crucial consideration is the zoning designation. Properties that combine farm operations with commercial activities like retail stores, public grain mills, and large dairy operations may have varying zoning classifications. For instance, a property featuring both a family farmhouse and commercial endeavors might be partially zoned as commercial for certain areas while being designated as rural or residential for others.
This complexity is crucial to navigate when planning your farm’s infrastructure and permit needs, as it can directly impact the types of permits required, infrastructure decisions, and even bank financing options.
Insurance
When investing in a farmhouse renovation, it’s crucial to consider insuring your property. However, many vintage farmhouses lack modern building codes, making it challenging for new owners to secure coverage. The issue lies with insurers, who often refuse to extend policies to new buyers – even if the previous owner was insured – due to the outdated construction. In some cases, significant renovations may be required before insurance can be secured, leaving new owners in a precarious position.
Bank Financing
Securing bank financing for old farmhouses can be an uphill battle due to various issues. For instance, signs of wear and tear such as peeling paint, crumbling chimneys, and hazardous building materials can give lenders pause when considering your loan application. When you do manage to secure financing, you may need to contribute a larger down payment upfront.
Furthermore, the loan itself may be used to fund repairs, which could require you to adhere to a strict schedule outlined in your contract with the bank.
Bank Owned Properties
Many rural properties, including old farmhouses, are often held by banks due to foreclosure proceedings. A peculiarity of this situation is that banks tend to lack the same level of enthusiasm as traditional homeowners when it comes to selling. They typically opt for an ‘as-is’ sale and prefer all-cash transactions. Moreover, if a bank perceives potential for future property value appreciation, they may be reluctant to accept full-price offers.
As a result, purchasing an old farmhouse owned by a bank can involve additional complexity and challenges.
Old Farmhouse Renovation Complications
When contemplating an old farmhouse as a potential dream home, it’s essential to acknowledge the significant amount of work required to transform it into a comfortable and functional living space. Many individuals underestimate the time and financial investment needed, often leading to costly surprises down the line. To avoid this scenario, consider the following factors that can impact your cost estimates and help you better prepare for the project:
Foundation Issues
We inspected an old house that initially seemed like a steal, but upon closer examination, we uncovered a major issue: a faulty foundation. The problem was so severe that it couldn’t be repaired, posing a significant risk of collapse, especially with the increasingly violent weather patterns we’re experiencing today. In fact, the only viable solution would have been to relocate the entire house and install it on a new foundation.
This added a substantial layer of complexity and expense to what had initially appeared to be a sound investment.
Water Safety
Many old farmhouses rely on well water, which can be a blessing if the quality is great. However, wells, especially unmaintained ones, can also pose health risks. The risk of contamination from factors like aging infrastructure, environmental influences, stagnant water, and runoff sources is significant. Additionally, older pipes may contain lead, which wasn’t banned in the US until 1986, increasing the risk of lead poisoning. Before making a purchase, it’s essential to test the water quality.
While lab tests can provide comprehensive results for a fee (over $700), they may not be feasible or even allowed by sellers who want to avoid complications. Instead, simpler home tests like coliform and E. coli pass/fail tests or lead test kits can give you an idea of your well’s condition. When combined with your home inspection report, these results can help you estimate the repairs needed for safe drinking water.
Water Pressure
When discussing water, it’s essential to consider water pressure. Typically, residential homes operate within a range of 40-50 pounds per square inch (PSI). However, levels exceeding 60-80 PSI may require throttling with a pressure regulator for optimal comfort. Conversely, pressures above 80 PSI can lead to damaged plumbing and necessitate investigation to identify the root cause.
Similarly, low water pressure in a well often signals a system issue, which could be attributed to clogs, tank or bladder problems, or other factors. The cost of repairing wells can vary significantly depending on the installation method and nature of the problem, ranging from simple part replacements to more extensive system installations.
Oil or Wood Heat
While older farmhouses often rely on wood stoves or oil heat for warmth, it’s essential to consider the costs involved. Oil-based heating can be 2-4 times more expensive than natural gas, so you may need to adjust your winter budget or invest in a modern HVAC system to reap long-term savings. Wood-fired stoves do offer charm, but they also introduce fire hazards, increased maintenance demands, and air quality concerns.
To mitigate these issues, consider upgrading to a cleaner-burning stove or installing an air purification system to ensure your family’s health and well-being.
Air Conditioning
Prior to the 1970s, central air conditioning didn’t exist, making it a remarkable feature of many old farmhouses that were designed to maintain a comfortable temperature through clever ventilation strategies. By simply opening windows, homes could stay cool during the hot summer months. However, as temperatures continue to rise and the frequency of heatwaves increases, air conditioning has become an essential component in many modern households.
Electrical
The moment you step foot into an old home, the eclectic mix of circuitry is revealed through its very architecture. A hodgepodge of electrical eras is often the result of homes being built piecemeal over time, with additions and expansions taking place as families grew or resources allowed. This patchwork approach to building can be seen in the varied wiring systems used throughout a home’s history.
In the past, people didn’t build massive homes all at once.
Instead, they constructed smaller dwellings and gradually added on over the years. Upstairs areas, side wings, or even entire second floors might have been built later as families expanded or resources became available. This incremental approach to building has led to older homes often featuring a medley of electrical eras, with different wiring systems coexisting within the same system.
As you navigate these complex electrical systems, it’s essential to understand the risks associated with each older wiring type in order to make repairs and upgrades piecemeal. Inspecting past work is also crucial to identify any hidden fire hazards that may be lurking beneath the surface. In many cases, upgrading to a modern breaker box can help better regulate your home’s electrical system and provide peace of mind.
Appliances
When it comes to upgrading electrical appliances in old farmhouses, one major consideration is replacing outdated models with newer, more energy-efficient ones. However, this process can be more complex than expected, especially if the house has undergone significant changes over the years. In some cases, you may need to create new spaces for dryers and install necessary wiring and ventilation systems.
Similarly, adding outlets for modern appliances like dishwashers might require removing existing cabinets and plumbing fixtures. Furthermore, installing refrigerator icemakers often necessitates connecting a water supply line. While it’s possible to stick with traditional methods, once you’ve grown accustomed to the larger refrigerators that are common today, it can be challenging to adapt to the smaller iceboxes of the past.
Landscaping Hazards
Old farmhouses often come with a unique advantage – mature landscaping that adds to their charm. Imagine strolling through a property lined with towering oaks featuring vintage tire swings or fragrant lilacs in full bloom. However, this picturesque scenery can also present its own set of challenges. Neglected landscaping can quickly become overwhelming and costly to rectify.
From overgrown hedges requiring heavy maintenance to suckering plants that have spread beyond their original boundaries, and even roots growing too close to the house or diseased trees that are too large to safely fell without heavy machinery, these issues can drive up the cost of making an old farmhouse safe for your family.
Outbuildings
When considering homesteading properties, the condition of outbuildings can greatly impact the overall appeal. While charmingly rustic structures can add character, neglected barns that are literally falling apart can be a significant liability.
The recent trend of repurposing old barnwood can sometimes lead buyers to assume that these half-collapsed structures are a valuable find, but in reality, they often hide serious issues such as termite infestations, mold growth, or unwanted critter inhabitants. These problems not only create fire hazards but also pose challenges for insurance coverage, aesthetic appeal, and even safety risks for children and livestock.
Before making a purchase, it’s crucial to assess the materials used in construction and the feasibility of repairing or removing outbuildings to avoid costly surprises or long-term eyesores.
Home Sweet Home
When considering the purchase of an old farmhouse, it’s essential to recognize that even those with imperfections can be worth restoring – as long as budget constraints aren’t a concern. The historical significance and inherent charm of these properties make them valuable treasures.
As you remove outdated finishes and reveal original hardwood, hand-milled beadboard, or beautifully crafted planks beneath, the sense of discovery is unparalleled. It’s akin to uncovering hidden treasure.
After dedicating years to meticulous renovations, sitting on your newly restored porch – adorned with a sturdy swing crafted from reclaimed barn wood – will instill a profound sense of belonging. Every moment and every investment will feel justified, knowing that the character and history of your 100-year-old home have been meticulously preserved.
