From the expansive space around your property to enjoying the clear night sky, there is nothing quite like owning a ranch in British Columbia. At the same time, ranch ownership is a big commitment with new responsibilities. In this blog, we present important information you should know before you start looking at ranches for sale in BC.
Properties Zoned as Agricultural Are a Bigger Risk
Mortgage lenders consider all risk factors before approving a loan, and some will not approve a mortgage for agriculture property due to the difficulties with foreclosure. Should you purchase the property and use it to make your living as a farmer, the lender would need to foreclose on your home and business if you default on payments. This can be challenging to do with the numerous protections the Canadian government has put in place.
However, lenders face less of a risk if you do not plan to raise animals or grow crops. Your application should go through fine in this case if you meet the credit, down payment, and other required criteria.
Appraisers must travel further to evaluate the property and cover more ground during the process, thus leading to higher appraisal costs. Another consideration is that rural ranch properties tend to sell slower than city properties. You should be prepared to pay the difference between the selling price and appraised price if the appraisal does come in low.
The typical limit lenders are willing to consider with ranches for sale in BC is 10 acres of land, one house, and one outbuilding. It can be challenging to find a lender willing to approve a mortgage over these limits.
Property and Fire Insurance
Lenders will insist on these types of insurance coverage, but insurance agents may not always be willing to provide them. From their perspective, ranch properties are many miles from the nearest fire or police station. The longer you must wait for help to arrive, the more likely it is the insurance company will sustain a financial loss. You should expect to pay more for coverage when you do find an insurance company willing to issue a policy.
Wood Burning Stoves or Fireplaces
Any offer you make on ranch property containing a wood burning stove or fireplace should be contingent on receipt of a Wood Energy Transfer Technology (WETT) inspection report. The report confirms proper installation and safety of the wood-burning unit.
Contact Us to Start Looking at Ranches for Sale in BC
Licensed real estate brokers Irv Ridd and Beverley Kniffen of Cascadia Pacific Realty, Ltd. have more than 30 years of experience representing buyers and sellers in the British Columbia market. Please contact us today to learn more about available ranch properties.