Texas is a wonderful state filled with majestic green fields, impressive hills, and beautiful mountains. It can be an excellent opportunity for investors looking to purchase land. Whether you are a beginner or a first-time buyer in this state, make sure to read our tips for buying land in Texas first!
1. Compare the Price with Similar Properties
Whether we like it or not, money is an integral consideration when buying a property. That is why it is vital to consider if you got a good price for the land.
The best way is to compare the prices with similar properties. If there is land nearby sold recently, it might tell you more about the average cost per acre.
As with any other investment, consider total expenses, and see whether purchasing the land is the right move.
2. Inspect the Nearby Area
We assume that you will visit the property itself, but while doing that, check the nearby area, too. It is smart to get to know the neighbors, and it might give you an idea of how the land in the area is being used.
You can even talk to the neighbors since they can reveal more about the land there. If there is no property miles around you, that is a red flag. Although other factors might still make it worth buying, ask yourself why no one bought any land in the area before you.
3. Get a Reliable Real Estate Agent
Real estate agents are fantastic experts, but they can’t specialize in all industry sectors. Hiring the best corporate realtor won’t do you much good if you are purchasing land. That is why you need an agent who specializes in lands and knows the market in Texas well.
Apart from that, here are some traits to look for in a real estate agent:
- Ready to help
- Admirable track record
4. Get to Know Zoning and Building Laws
If you are a real estate investor, the odds are that you plan on selling the land after a while. Those buyers will need to know any regulations related to building and zoning on the property.
Property zoning will determine whether you can build on the land and what you can do with it. These regulations are different from one state to another, so checking with local authorities is advised. Make sure to contact the neighborhood association (if there is one) or visit the City Hall.
5. Check the Paperwork and Make Sure The Land Has No Legal Problems
You want the transaction to be absolutely clear. That is why it needs to be clear who the seller is and how much land you are buying. The boundaries should be clearly specified, and there shouldn’t be any legal problems surrounding them. You don’t want a neighbor claiming it is his land tomorrow, even though you thought you did everything by the book.
6. Ask If There Are any Conservation Easements
Some portions of the land throughout Texas are conservation easements. Nobody can build on those properties because natural resources should be protected. That is why you want to check if your land has any areas that are easements since they can limit your maneuvering significantly.
7. Confirm Which Rights You Receive with the Land
You will have ownership rights over the land, but will you get timber and mineral rights, too? That is something you should check before you purchase the property, especially if you planned on finding suitable timberland for buying.
Experts advise that all your rights and titles should be clearly specified in the contract when buying the land. Make sure to have relevant documentation that can prove the desired rights over the property.
8. Ask If There Are Tax Breaks
The State of Texas might have some tax breaks for people willing to buy land. The regulations constantly change, which is why you should consult the authorities to learn about potential tax breaks. Alternatively, you can also consider hiring a tax expert that would help you with all the paperwork.
9. Look for Land with a Water Source
If you are buying land in rural surroundings, the odds are it won’t have many utilities. That means you might need to identify a way to get electricity or implement a septic system. However, you would benefit significantly if there is already a water source.
You will need water for everything from drinking it yourself to growing plants and livestock. That is why your job will be easier with an existing power source, especially if you are buying a large piece of land.
Texas offers beautiful pieces of land at budget-friendly prices, and it is perfect both for investors and those looking to live on the grounds. Ultimately, it all comes down that you have all the information required to decide whether you want a particular piece of land. Don’t hesitate to ask questions to your real estate agent, seller, or the local authorities. Information is power, and it will help you determine if that land is the right choice for you!