Land ownership is a dream come true for many, and having a place to call your own is an outstanding achievement. Are you planning to buy land in Texas? This article is for you.
Texas is one of the most expensive states and has scenic fertile land available to buy. After putting together finances, you’re stepping into the pinnacle of your acre-buying endeavors.
While land here is affordable, there are hurdles you must overcome and lots of homework to do. So, what are the most important considerations for people planning to invest in Land in Texas?
In order to successfully accomplish the process of buying land in Texas, you need to keep in mind several important things. As a beginning, think of all additional fees attached to the land purchase, including permit fees, fees associated with land preparation and utility fees. Those fees differ depending on the specific property and you may get more precise information on that from the land seller. Moreover, make sure to get all the required permits, before you construct anything on your land.
From the overview let’s hop into practical, helpful tips that you’ll need while going through the land purchase process.
Tips for Texas Land Buyers
Doing Market Research
Property prices are always on the rise. You’ll find land that’s overpriced as sellers hope to catch an upward price trend. Land listings can act as a guide, showcasing an average asking price.
Take up the services of an experienced local realtor. You’ll find these rural estate agents understand the Texan marketplace.
Check too on recently closed land sales and compare them before making your offer. The county appraisal district will offer property valuations for the considered land. You can review these together with the local listings’ directory.
Checking the Infrastructure
Eying a piece of rural land in Texas, then find out about the available utility services. Ask about water or sewerage conduits. Also, ensure that electricity, phone coverage, and TV reception are available.
You may be buying land in Texas for residential purposes. So, it pays to know about school bus routes, trash pickup, or road maintenance.
Not Underestimating Improvements
Your prospective land can have structures such as farmhouses, barns, or camp houses. Improvements already on the property can add value. This is because zoning requirements for putting up new buildings can be costly.
In Texas, counties provide permits for well-digging or septic tank installations. Ask about the water or sewerage systems in place or find estimates for wells and their depth. There could also be regulation in place on account of the soil conditions of that area.
Learning County Restrictions and Local Codes
Your intention of buying land in Texas can be for subdivision and allotment sales. Find out the legal guidelines for subdividing land or other deed restrictions.
Keep note of extended jurisdictions of territory by surrounding municipalities. This can affect the type of activities you’ll perform on the property you are looking to buy. Take time to review the impact of these limitations and how your buyers would perceive them.
Taking Advantage of Property Tax Incentives
Texas offers agricultural land tax relief. This incentive reduces taxable values for properties used in farming.
Your potential land buy may qualify for tax incentives such as direct exemption or special appraisal. It pays to check with a local tax assessor.
When your land has agricultural use tax benefits, find out how you can maintain these exemptions. You must note that some landowners may have receded tax incentives in favor of rural or commercial home loans.
Comparing Insurance Rates
Insurance for out-of-city limits properties can be a hassle. That’s especially since some providers won’t cover rural farmland.
Gauging Your Surroundings
Give attention to the restrictions and property use for neighboring tracks when you invest in land. Your land could be next to a proposed highway, or there is intense livestock keeping or commercial development next door.
Buying land and then finding out that the next-door neighbors are a nuisance can be disheartening. Issues may also arise when you try to sell the land off later.
Investigating the Environment
Check to see if the land you’re looking to buy in Texas contains any endangered plant or animal species. Such an area will have restrictions about its use, impacting your ability to develop the property. For instance, you’ll not harvest timber where a species like the Red Hill salamander gets identified.
Your intended property may also have suffered environmental contamination, and although previous owners could have wreaked this, you as the new landowner are accountable by federal law for cleaning up and repairing any ecological damage.
Take steps to determine hazards or restrictions to save up on future clean-up costs or resources that you can’t touch.
Performing Realistic Budgeting
Have an overhead budget besides your initial closing costs on land in Texas. There will be ongoing improvements once you’ve acquired the land. This includes new buildings, fencing, landscaping, outbuildings, or general repairs.
After buying the land, there will be extra cash needed, especially for rural Texas property. There will also be real estate taxes to consider as well as improvements such as game plots and road upkeep.
Using Local Professionals
Whenever you can, let your land buying and acquisition process in Texas involve local experts. From local lenders to realtors, these professionals know the area market dynamics. They will help you to review all the above considerations.
Local traders and vendors will also put you in contact with their business relations. You’ll also get invaluable knowledge of the area. With such input, you’ll be able to make smart decisions that circumnavigate common investment errors in a land buying process.
Once you’ve talked to a few estate agents and interacted with the locals, you’ll find land in Texas that meets your expectations. You can negotiate the closing price as rarely will these transactions sell at the asking price. Choose land that will save you money, not incur extra costs in facilities, development, and zoning rules or taxation.