With a growing population, no income tax and a low cost of living, there is an increasing interest in buying rural property in Texas. As the population increases, the state’s cities and urban areas continue to expand. This has led to more people looking for property in outlying locations.
There are several commercial opportunities for rural property in Texas, including investment properties such as ranches, farmland, and second homes away from heavily populated city areas. As the demand for rural property grows, rural land purchasers are likely to see an increase in the value of their investments.
How Do I Buy Rural Property in Texas?
Once you’ve found a piece of rural property in Texas that suits your needs, the first step is to make an appropriate offer. Land values in Texas can vary greatly depending on the size and specifics of the property. The location, special amenities, land access and natural features all play a role in the value.
Working with a certified appraiser with rural land valuation experience allows a buyer to make an appropriate offer on any given piece of property. After an offer is accepted, there are several steps that must be completed prior to closing. This includes obtaining a boundary survey performed by a registered land surveyor and purchasing a title policy, a one-time expense that protects the buyer from claims of ownership after the purchase.
An appraisal, which is required by lenders, such as a local community bank, should be completed by an appraiser familiar with the particulars of the type of land you are purchasing. Federal law requires a state-certified appraiser for purchases greater than $250,000. On average, it can take anywhere from 45 to 90 days to close on a sale of rural property Texas.
How Expensive is a Ranch in Texas?
Like all rural property in Texas, the price of a ranch will depend on the features of the land. When buying a ranch in Texas you can expect to pay 20 percent of the purchase price as a down payment. Additionally, you should expect to pay for a title policy, recording fees and other closing costs.
To offset the upfront expenses of purchase, owners of rural property in Texas may qualify for exemptions on their property taxes if the land is used for certain purposes. These include agricultural uses such as pasture or grazing land; planting, raising or harvesting timber; or preserving the land to protect native wildlife.
How do I Find a Good Deal on Rural Property in Texas?
Getting the best deal on rural property is simple, contact Legacy Broker Group!
Posted by Richmond Frasier • Partner on