There are many agents that list Texas land for sale, but not all ranches are created equal. There are several things that one should consider before they invest in ranch real estate. When thinking about a Hill Country ranch investment, for example, you should always keep in mind that land investments typically pay off over the long term. Ideally, the ranch property you invest in should appreciate in value over time. Take advice from experienced real estate agents and demonstrate patience. There are many potential places where buyers of land can go wrong, so below I have listed some ranch buying mistakes that you can avoid.
First, make sure that you hire a real estate agent familar with the part of Texas where you intend to buy a ranch. Buyers often feel that they can conduct a land investment without the assistance of a real estate agent, but professional experience should not be overlooked. Many buyers believe agents should be avoided, but they can help big time! Not only can a Texas real estate agent inform you of a ranch’s future or current potential, but they can also advise you on how to go about selecting a a ranch for investment. In addition, because land values can fluctuate based on location and amenities, they can tell you if the price being asked by the seller is reasonable. Lastly, an experienced real estate agent will guide you through the land buying process, the applicable fee, and taxes that need to be paid.
Next, do not go after the first piece of “cheap” land. One of the common mistakes people who want to invest in land make is to go for the cheapest land they can find. While every buyer should look for a fair price, it is also important that you are not buying a ranch or farm simply because it is perceived as cheap. Often times, less expensive properties are cheaper for a reason. Lack of water, location, or a lack of amenities cause land to be valued lower. If those things are desired, then you will have additional monetary input into the land. The benefit of buying your Texas ranch with additional amenities is that those costs are rolled into your monthly payments. Thus, it is advised that buyers go for land that is competitively priced and has growth potential, solid infrastructure, and fair price.
Don’t be afraid to get legal advice. Whenever you are ready to make your Texas ranch investment, it is best that you have an experienced legal advisor to help and guide you. These are the people who usually have the experience in the field and are roughly aware of what the end result of the investment could be. They can guide you as to the laws that may affect your ranch or farm investment. Of course, they garner a fee, so check around to ensure the advisor you decide to work with has years of ranch investment experience.
Check the background of the land for sale and the seller. Never make an investment without knowing the history of the property seller and the land. Up front, a piece of land may look very profitable, but down the road it may be a money pit. Get references regarding the investment from individuals, neighboring land owners, and those who know much about land deals. In addition, consult your legal advisor and your real estate agent for evaluating the overall situation. Only after doing your homework should you move to invest in your new Texas ranch!