Decisions, decisions - Renovate an existing farmhouse or buy land and build?

Pros and cons exist for every decisions.  In my limited experience, it seems like the right answer would totally depend on the following (non inclusive factors):

• Financial - land without a house is difficult to buy.  Typically only local banks will lend money for "unimproved" land and the loans often require a significant amount of money down.  Even with great credit, we received various quotes from 20% to 50% down.  Land with a house is much easier to finance, although depending on the tax appraisal zoning code, you may need an agricultural loan vs. conventional.  We were able to find a local bank that offered a construction-to-perm loan.  I'll write a separate blog post about zoning issues and financing matters and how they impacted our decision :)

• Permitting - Existing house does make the permitting process much easier.  For example, in unincorporated Johnson County, KS where our land is located, new regulations went into effect requiring an evaluation of a new septic system.  The evaluation was $500 to have the septic contractor dig some holes and an evaluation fee of $450 for the city to evaluate the soil.  If we had simply purchased a house with an existing septic, the only requirement would have been for the inspector to evaluate and have to seller make any changes (much easier).  Helpful links for more information:

http://www.jocogov.org/dept/health-and-environment/environment/septic-systems/residential-systems

Soil profile analysis form:  http://www.jocogov.org/sites/default/files/documents/DHE/ENV/SPA%202016.pdf

• Customization - Definitely leans in favor of the new construction avenue.  Some of my friends find that customization can be a benefit and a curse :)  Analysis paralysis is definitely real!  But if you take it one bite at a time, you can certainly manage!

• Reuse - It can be helpful buying an existing farmhouse if you can reuse some of the construction items, like foundation, septic, roof, etc.  However, analyzing and demolishing existing structures can be costly and long-term.  If the house unexpectedly has asbestos or other improper items, new codes will dictate whether the contractor can leave-in-place or must remove/dispose.

• Location - In the Kansas City area, much of the land within a reasonable commute, which is also in a better school district, is built upon or has an ungodly price :)  So you do have a cost/benefit analysis to do...it is hard to find unimproved land within our drive distance.

For us, I think we would have been open to either option.  We actually put an offer in on some west Lenexa land with a farmhouse but could not come to terms with the seller.  Our situation was more driven by availability rather than preference.  In the end, we kept coming back to this piece of land and the sellers decided to make us a deal.  Seriously, thanking my lucky stars they did!!!!