So you’re in the market to buy some rural land — First of all, you couldn’t be making a better decision. As we all know, land is one of the most solid investments you can make — And in the Great State of Texas, this is particularly true!
But for all the benefits, there are still some important things first-time land buyers need to be aware of to use reason and caution before investing. Unfortunately, it’s common for land buyers to invest more than they know how to handle if they don’t find an experienced rural real estate guide to help them through the process.
The 3 Most Important Questions To Ask Yourself
Before you make any decisions or sign any documents, you need to ask yourself some fundamental questions.
What do I need the property for?
Yes, you’ve probably thought about this already and it was perhaps your motivation to look into purchasing rural land in the first place. But it is a consideration that must be carefully thought through as it will affect every aspect of the purchasing process.
Rural land is generally used for outdoor activities like hunting, fishing, camping, ATV trails, farming, and in some cases, residential.
It is essential to try and precisely define your needs. For example, the purchasing process and choice of land for fishing or deer hunting as opposed to camping and hiking, are very different. Everything from the location, to the county laws and regulations, to the ecosystems that are on your land plays a role in determining the process, and you’ll need to establish this before you begin. An experienced rural real estate brokerage can help make these decisions easier.
What is my budget?
Money is always an important consideration, but this question has less to do with your ability to purchase the land than your mode of purchase.
Cash is king when it comes to recreational land buyers because land loans are a lot harder to obtain than mortgages in some instances. Land loans also have a higher interest rate, more fees, require a larger deposit, and give you less time to pay the loan off.
These are all serious considerations when calculating the viability of your purchase.
Do you have a premier rural brokerage company on your side?
The most critical question you need to ask is whether you have the right team on your side. Rural and recreational property brokerage and land loans differ from residential real estate and home mortgages.
Having a group that specializes in this type of land purchase makes it so much easier and will help you avoid some of the common pitfalls that first-time land-buyers make.
Common First-Time Land Purchasing Mistakes to Avoid
Here are some common mistakes first-time rural land owners make.
Expecting rural land purchases to be quick and easy
The processes for financing and the transfer of farm land or rural land are a lot more complicated and time-consuming than residential property acquisitions. If you’re attempting to go through this process without experienced guidance, it will likely take much longer, require more time, and as a result, become more expensive as time goes on.
Overpaying for land
The price of the land you purchase in a rural setting doesn’t only depend on the size, and that’s where many people go wrong. There are many other considerations to make, which determine the price. Without this knowledge, many first-time landowners may pay more than expected without experienced help.
Legal access and liens
Legal access isn’t guaranteed with the deed in many cases, which can be a significant problem for first-time buyers. Rural property experts can help here, and getting their advice is critical to work through any complications.
Your decision to purchase recreational property is undoubtedly a wise one — But to get the most out of your ranch land and the purchasing process, it’s essential to get the assistance of the experts in the field.