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5 Things to Consider when Buying a Ranch or Farm in Texas
Alta Terra Real Estate
We’ve had a crazy few years in the Texas real estate market. Just three years ago, we saw the housing market drop significantly due to the COVID-19 pandemic and the fact that it wasn’t safe to be around other people in public, much less tour homes and visit open houses. Then, in 2021 and now 2022, the market has rebounded to beyond pre-pandemic levels, leaving incredibly high demand from buyers with not enough inventory to go around. This all adds up to high property values and a very competitive market for buyers.
But what about the land and ranch market in Texas? You should expect a lot of the same. With more and more people flocking out of downtown areas and away from major cities, land and rural properties are becoming all the more popular, especially in Northeast Texas.
However, buying a farm or ranch in Texas is much different than purchasing an average residential property in a suburban neighborhood. We want to help set you up for success as you consider buying land in Texas, so here are five things we think you should consider when buying a farm or ranch.
1. What is Your Purpose for Buying the Property?
Your purpose for buying a specific tract of land really determines what kind of questions you need to ask and helps your realtor to find the best property for you. Are you looking for a ranch to use on weekends with your family? Do you plan to hunt on the property? Are you planning to run a true ranch with livestock and cattle?
Your answers to these questions make a big difference in what you should be looking for when buying land in Texas. Making use of land for a farm or ranch is much different than buying property for leisure. Mention this to your realtor and they can help you find the right land.
2. Have you already secured financing?
Just like with residential real estate, getting pre-approved and securing funding before starting the process of even looking for the right property can go a long way. One reason for this is because of how highly-competitive the market is right now. As you start looking at land, you’ll want to be ready to make an offer when you find the right
piece of land. One of the best options for lending when it comes to buying raw, undeveloped land is going to be a member of the Farm Credit System.
3. Have you found the right farm and ranch agent to help you out?
When it comes to different specialties within the real estate industry, some unique situations require more attention and detailed work than others. If you’re considering purchasing a farm or ranch in Texas, you’re going to want to find an agent that has experience and expertise in the farm and ranch field that can help you through the unique parts of the process.
For example, your agent is going to need to know how to get information on past use of the property, deed restrictions, endangered animal rights, floodplain locations, soil pollution, zoning ordinances, and everything else that goes into a successful real estate contract. As you can tell, you’ll want someone with quality experience buying farm and ranch properties. At AltaTerra Realty, we specialize in buying land and our experts have knowledge of different property types as well as lifestyle and niche real estate to truly offer advantaged services matched by none.
4. How is the accessibility?
Accessibility and overall property quality is a huge factor to consider when making such a big purchase. The last thing you want is to make a large investment into a tract of land that you can’t use or access when you want to. How are the roads leading up to the property? FM roads tend to be better quality than county roads, which usually run a higher risk of flooding during storms.
In special situations where you have to cross over private property to access your land, you’re going to want to make sure there is a deeded easement. These processes take longer than they should, so it’s always smart to get a head start on the details so you don’t find yourself in a tough situation in the future.
5. Consider aspects that are unique to farms and ranches
A buyer’s worst fear is purchasing a completely useless piece of land. Not only that, but you don’t want to finally close on a farm or ranch and find out that you are going to have to put another $100,000 into it just to make it livable. This might sound obvious, but some things are worth considering when making a big purchase.
Some of the aspects you want to check on are zoning ordinances (tell you how you can use a certain piece of property), deed restrictions (limit what you can do on your land), home utilities (is there a septic tank? Water well? Source of electricity?), floodplain locations, and drainage areas. These are all extremely important aspects of buying the right tract of land, so don’t hesitate to ask your realtor for details.
We specialize in helping our clients find the perfect piece of property for them - however big or small. Give us a call at (903) 438-2585 or visit our website here.