Whether you’re planning to build your dream home or invest in rural property, buying land in Texas can be an exciting opportunity. However, owning land isn’t just about picking a plot. You’ll need to understand zoning laws, financing options, and long-term development potential. Taking the time to learn about these factors will help you make informed and confident decisions.
Keep reading to find out practical tips for buying land in Texas, so you can make the most of your investment.
Key Takeaways
- When buying land, know your needs, consider your financing options, obtain a land survey, and check zoning laws. Don’t forget your down payment, and consider all due diligence.
- If you want to invest in land, there are several different tactics you can use, from buying and holding to leasing for farming or other use.
- Buying land with owner financing can save you time and money while allowing you to avoid a credit check.
- For the perfect piece of land in Texas, you can work with an experienced land developer like SRC Land.
10 Tips for First-Time Land Buyers in Texas
Buying land in Texas for the first time is an exciting step toward building your future, whether that means a new home, business site, or long-term investment. But before buying, it’s important to understand what to look for and how to prepare.
These tips will help you make informed decisions and avoid common pitfalls:
1. Determine Your Needs
Before you begin searching for a land, take time to define why you are buying it. Are you planning to build your dream home, start a small farm, or hold it as an investment? Knowing the purpose will help you decide on the right size, location, and features you need. This should also include considerations for things like utilities, amenities, distance from neighbors, and more. While it can save you money up front, buying undeveloped land or raw land might cost more in the long run if it doesn’t meet your needs.
2. Consider Financing Options
Once you’ve determined your needs, consider how to finance the land. There are many different financing methods when it comes to buying land, so it’s important to explore your land loan options.
You may look into options such as traditional bank loans, seller financing, or using your savings, if possible. Before accepting a deal, compare different offers, check interest rates, and review repayment terms carefully before committing. Here at SRC Land, we often recommend seller financing, as it can give you access to favorable rates and flexible terms, all without ever having to go through a credit check.
3. Do Your Due Diligence
Before making any purchase, research the property thoroughly. Check the ownership history, liens, and any potential legal issues. If possible, talk to owners of neighboring properties to understand the area and check that the property lines are accurate.
4. Consider Environmental Test
Some properties could have environmental risks, such as contaminated soil, flood zones, or other hazards. So, you might want to conduct environmental tests early to verify that the land is safe and suitable for your intended use.
5. Account for the Cost of Your Dream Home
If you plan to build, remember the land price is just part of the cost. Factor in construction, permits, utility installation, and landscaping. Budgeting for the full project upfront prevents stress and ensures your dream home doesn’t break the bank.
6. Don't Forget the Down Payment
When buying land, the down payment is typically higher than for a typical home mortgage, sometimes ranging from 20% to 50% of the purchase price. So, it’s important that you plan ahead in order to have the funds ready to avoid delay. Giving a larger down payment can also help you secure better loan terms, lower interest rates, and demonstrate financial seriousness to the seller.
7. Consider Adjacent Properties and Nearby Amenities
You’ll need to consider the surrounding area, as nearby schools, shops, roads, or future developments can impact your privacy and the land’s resale value. Being aware of the neighborhood and nearby developments helps you choose a property that aligns with your long-term plans.
8. Get a Professional Land Survey
You may want to work with a licensed surveyor to measure and map the property boundaries. Doing this helps to make sure that the land is legally recognized.
With the survey report, you can identify any potential restrictions or costs, such as zoning laws, easements, or encroachments, that may impact your plans. The report also provides valuable details about the property’s size, shape, topography, and soil type.
9. Check Zoning Laws
Before buying land, make sure you know the zoning rules for the property. Whether for building a home, farming, or running a business, zoning laws control how land can be used. Buying without checking could lead to unexpected restrictions that can prevent you from doing what you planned.
10. Check Title and Conservation Easements
It’s important to verify the property title and any existing easements before finalizing your purchase. A clear title confirms that the seller has legal ownership and the right to sell the property. Additionally, reviewing easements helps you understand any rights others may have on the property, such as utility access or shared driveways.
By checking the property title and easements early, you protect yourself from unexpected costs, restrictions, or future legal disputes.
11. Work With a Land Developer
By working with a land developer like SRC Land to find the perfect private property for your dream home or ideal investment, you can gain access to more favorable rates, better properties, and a more secure development future. We can help you verify property boundaries and establish the utilities needed for your project.
You don’t have to work with a real estate agent to find the right land for sale in Texas. With a land developer, you can make your dream of land ownership a reality.
Land Investment Tips
Whether you’re thinking long-term or want quicker returns, understanding different land investment strategies can help you make the most of your purchase. Some investment strategies you can use include:
- Fix and Flip – If you want quicker returns, consider buying undervalued land or a property with potential, making improvements, and then selling it for a profit. However, you’ll need to understand local zoning laws and the market so you don’t overpay.
- Buy and Hold – Buying and holding is one of the simplest yet most effective ways to invest in land and make money. You can hold onto your land while its value appreciates over time. This works especially well in areas where development is expected or populations are growing.
- Lease for Income – You may be able to lease your land to farmers, campers, ranchers, or businesses. This gives you a steady stream of income while the property continues to grow in value. It’s a great way to make money from your land without selling it.
- Build and Rent Property – To generate a long-term source of income, you can build a residential or commercial property, depending on zoning. Once it’s built, you can rent it out as an apartment, home, or office space.
Why You Should Consider Owner Financing
Owner financing makes it easier to buy land without dealing with banks or mortgage lenders. This financing option enables you to purchase land directly from the seller through a mutually agreed-upon payment plan. Some benefits of purchasing land through owner financing include:
- You can work directly with the seller to agree on payment terms and a purchase price that benefits both parties.
- You don’t need a good credit score to qualify for owner financing.
- The agreement complies with state and federal laws to ensure the transaction is safe and fair for both the buyer and the seller.
- The land buying process moves more quickly compared to traditional mortgages. This makes it easier to own land more quickly.
- Your closing costs are significantly reduced.
With seller financing, you can make your land purchase simpler and more cost-effective. Don’t hesitate to reach out to our team to learn more about our seller financed land transactions.
Secure The Perfect Texas Land for Sale With Help From SRC Land
When buying land in Texas, tips from the experts can help. Their guidance can help you understand financing, property taxes, and other important steps to make smart decisions. It’s still important to work with a land developer to make sure your purchase goes smoothly.
At SRC Land, we make it easy for you to find the perfect property. This saves you time and money on development and gives you peace of mind. Whether you want rural land to build, invest in, or start a business, we have the right Texas land for sale that fits your goals. Contact us today.
