A House in the Country

It’s a beautiful life, living in the country –  distant neighbors, little traffic, less noise. You’ve got your lovely little farmhouse, maybe a garage, maybe a chicken coop or a horse barn. You’re surrounded by prairie wildlife — or corn fields — and the livin’ is easy.

Well, maybe not that easy.  Or at least getting there may be a little more complicated than you think.

As a Realtor working in Marion County, I get lots of queries about country homes, so I thought I’d lay out some of the basics of buying an existing country home or building a new one.  My sources for this topic were Missy Poffenbarger, Marion County Zoning Administrator, the 2013 Marion County Comprehensive Land Use Plan (which can be found on the Marion County web site and which is a treasure trove of cool maps, if you like to geek out on maps, like I do), Jason from MidAmerican Energy, Randy Branson from Marion County Rural Water Association, and Robin Redding from Two Rivers Coop in Pella.

Rural IowaFirst you need the location.

Aside from what kind of terrain and view you desire for your country home, zoning issues do come into play in buying and selling property in Marion County.

Land use ordinances vary significantly from county to county in Iowa; for example, some counties set no requirements on rural land use, others don’t allow any homes to be built in agricultural zones at all.  Marion County uses zoning to help implement a long range land use plan.  Most of the county is zoned A1, which is the designation for an agricultural district. Towns are a mix of residential, commercial and industrial zoning designations, and there are pockets of residential zones scattered throughout the county, as well as a few undesignated areas. Check out the Beacon map site for your county to learn more about zoning in your area. Go to the Marion County Beacon site for more information on individual parcels in our county.)

So what does this mean for those of you who want to sell or buy a rural building lot or home?

  • If you own land that is zoned A1, and you wish to divide a small parcel either for sale, or perhaps to give to your child, the division must be at least 3 acres, and the parcel must have access to a county road (i.e., it may not be a ‘land locked’ island without egress to a road).
  • If the land was divided sometime between 1985 and 2010, the parcel may be no less than 1.5 acres. (Why? In 1985, the County decided to allow 1.5 acre building lots, but after 25 years, it became apparent that too many septic systems had been built too closely together; moreover, larger and larger homes and garages were being built, and setbacks were becoming an increasing problem. So, the County reverted to the earlier 3-acre requirement.)
  • No more than 4 three-acre parcels, with no more than one dwelling on each parcel, is allowed in any given 40 acre tract, in an A1-zoned area. Rezoning is required if you want to go above this limit.
  • A building permit is required for any permanent structure built in Marion County — one benefit of the building permit, is that a 911 marker is generated for the structure, allowing emergency services to find the correct location, should they ever be needed. For more information on obtaining a permit, go to the Marion County Zoning page.
  • Each dwelling must have its own septic system, which must be built according to county regulations and maintained in a non-polluting state. If you are buying an existing home with a septic system, you should know that many lenders require an inspection of the system before approving the sale. If you are selling a property with a septic system, wouldn’t you rather have the issue addressed BEFORE it holds up the entire sale process?

Next, you’ll need Utilities

If you are buying an existing home in the country that already has electricity, natural gas, and rural water hookups, you will need to call to have the utilities put in your name, just as you would in the city.  But if you are building a new home on a lot that does not already have utilities run to it, the cost can be significant.  Depending on how far your lot is located from the main lines, you some sources suggest that you may want to look into setting up your own systems such as drilling a well or installing geothermal, solar or wind energy systems.

I spoke with Jason at MidAmerican about the costs involved in running electric lines to a rural property. He laid out some ball-park guidelines to consider. Basically there is a per-foot charge to run power to your property, so the farther you are from existing power lines, the more costly it will be. There are two classes of lines, for the purpose of this explanation:

  • Primary lines that run from the main power line to the transformer which converts the high voltage power to ‘usable’ voltage. Most customer prefer to have these lines run underground. Cost: about $15/foot.
  • Secondary lines that run from the transformer to the house, geothermal system, barn, etc. The transformer should be no more than 200 feet from the house. Cost: about $6 per foot.

propane tankMany rural homes use propane gas to heat water and run furnaces.  You will need to buy a large propane tank, have it hooked up to the house, and make arrangements to keep it filled.  Many folks decide to go with a budget billing, and many also have their tanks filled in the summer when prices are lower. I spoke with Robin Redding at Two Rivers Coop in Pella for some idea of the costs involved.

Propane tanks come in 2 sizes, 500 and 1000 gallons. Most residential customers use the 500 gal. size. These tanks are available three ways: New, used, and reconditioned (which means the valves of a used tank are replaced). The tanks may be bought outright, or paid for on an installment plan over several years.  For example, a used 500 gallon tank is $650 plus tax. If you wish to pay for it over time, you will pay the tax up front ($175.50) and 4 annual payments of $130 each. This cost includes 2 pads and installation of the tank and digging up to 50 feet of line to the house. If you need more than 50 feet, you will pay and hourly labor charge (about $60 per hour) plus 50 cents per foot (over the initial 50 feet).  Additionally, you will need 2 regulators — one for the house, one for the tank — and some tubing, this is about $200.

Then  you will need to fill the tank and keep filling it as gas is used.  This is not an automatic process!  As of today, propane gas costs $1.12 per gallon, but this fluctuates considerably, peaking in the winter months.  Your tank can be filled up to 80% of its capacity, so figure about $425 to fill it today.  Most customers do a summer fill, and then need additional fills 2-4 times each winter. A very ballpark figure for average home annual propane cost is $1000. There are programs that allow customers to lock in the summer price — call your gas provider for more information.

Water Tower

Photo courtesy of IowaBackRoads.com

Most country homes make use of the Rural Water system, and in our county it is the Marion County Rural Water Association that provides water outside of the towns.  Some areas access Mahaska Rural Water instead.  I spoke with Randy Branson at MCRW for details.

Once again, cost to get the water to  your new country home depend a lot on how remote the home will be.  Generally, to connect your home to the water system costs a hookup fee of $1200, plus $375 if the location is along a gravel road, and $425 if it is along a paved road.  If it is necessary to bore under a highway, there is a $10 per foot charge, with an $800 minimum.

If you are extending an existing water line, you’ll pay a bit less, at $2 per foot, with another $250 for a new cleanout.

So, there you have it, the basics on location and utilities. There are also other considerations such as alternative power sources, fences, driveways, livestock enclosures, etc., that may need to be considered, depending on your particular situation, so I’ll address those topics in my next post!


Selling Your Home: Getting Your Financial Ducks in a Row

This is the second in a series of posts about how to sell your home.  This installment is about preparing your finances for selling and moving on from there.

When you sell your home, you’ll probably need to move into a new home, whether you’re upsizing, downsizing, or moving across the country.  Having your finances in order before you list is an important first step in preparing for the big change. These are a few steps you can take to ensure that your financial ducks are in a row before you list:

  • Grow your moneySave, Save, Save: When you move, you will need to make a 20% down payment on your next home, plus pay for expenses like inspections, closing costs, moving, and repairs and updates to the new property. If you have a nest-egg to cover these costs, the whole process will go more smoothly.  Depending on the condition of your home, the status of your existing mortgage, and the housing market, you may end up with a profit on the sale of your current property, but having some latitude before it sells works in your favor.
  • Be careful with your credit!  Your credit score will have a big impact on what kind of financing you can get, so if you will need a loan for a new home to live in when yours sells, do what you can to increase that score! Some steps to make your score the best it can be:
    • Avoid applying for new credit until you have closed on a new home
    • Don’t make large purchases
    • Pay all your bills on time
  • Work with your banker to prepare for the next step: Talk with your banker to find out how much you owe on your current home, whether you will need to sell it before you buy a new place, and how much financing you will be able to qualify for as you search for your next home.
  • Find a Great Realtor:  Not only will you need a great Realtor to sell your home, you’ll need their expertise to prepare before you even get to listing.  Your Realtor will need to be part of the early conversation because they can do the research to help you figure out what price you can expect your existing home to sell for.

Having your finances in order, and being an informed consumer will make you a better decision maker when you get into the housing market.

Here are a couple of great articles with more information on getting your financial ducks in a row:

7 Ways to Maintain a Good Credit Score

How to save a down payment for a home