We all want to make wise investments when it comes to buying a ranch property. When you are ready to start your search, here are five of the most valuable features of land to consider in your selection.
1. Water & Mineral Rights
When looking at buying ranch or farm land, water rights are increasingly one of the most crucial factors if not the most important factor in the purchase. Kelly Bennett of B3 explains it in greater detail – “Water is a critical component to ranch operations, whether it provides value through agriculture or recreation. As a result, it is incredibly important to understand both the water rights that trade with ranch properties and other water rights that share a common source. Especially in the West, nearly all water has been claimed for use, so while you may see a stream meandering through a property, you are not necessarily legally permitted to use the water in it, even for watering stock. An understanding of basic characteristics of water rights, like where they are diverted and used, how they have historically been used, and how old they are is therefore absolutely essential when purchasing a ranch property.” Water rights in many states can be sold, leased and encumbered separately, and they are not always owned by the person owning the land. “First in time first in right” applies, meaning the older the water right, the more valuable and reliable the right. After doing your due diligence, the water rights can therefore be one of the most valuable assets of your ranch. Read more here...
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