Although the process of buying an acreage property is really no different than any other type of residential real estate, there are a few variables you'll need to consider, which are usually taken for granted. Things like accessibility, utilities, zoning, tax exemptions and mineral rights are all factors you should understand before moving forward with a property's purchase. And just as important, working with a Realtor who has experience in the type of property you are buying, having a good survey showing the property lines and choosing a lender with a proven track record for financing similar properties to the one you are buying will keep you from experiencing any last minute disappointments.
One of the first decisions you should make is what type of property fits your parameters. Do you want privacy? Are trees important? If it's a horse property, do you want a sandy loam soil? If you're looking for recreational land to fish, hunt or ride dirt bikes, are there any deed restrictions that may affect your intended use? If you're going to build a nice home, what can go in around you? Where will you be commuting to? How much land do you need and where will you get the most for your money?
These factors will determine whether you'll have more options finding a property that fit your criteria in the northern, southern, eastern or western parts of the Dallas-Ft Worth Metroplex, as each area offers different geography, soils, amenities, demographics, commutes and land values. The area we service, which includes the northern counties, offers a good balance of flat and rolling terrain, trees and open land, sandy loam soil, creeks, lakes, small towns and booming cities. Although the property values tend to be a little higher than in other areas, we feel the accessibility to unlimited conveniences and the potential for continued property appreciation due to the growth of Dallas and Fort Worth moving north all make it worth every extra dollar you'd spend to live here.
Once you've determined what area fits your wants and needs, you'll want a Realtor who has a good reputation in the area you're looking in and specializes in the type of property you want, like an agent with texasliving.com. The experience we offer will make your property search and purchase a lot easier. A residential real estate agent who is the neighborhood expert may not be your best choice when it comes to buying an acreage property.
Next step would be to talk to a few lenders who are qualified and genuinely interested in helping you. Make sure they have experience in financing the type of property you plan on buying. But be careful, as every lender does not have the resources to finance an acreage property. In fact, you have to be very selective, as most mortgage companies only offer traditional loan programs for residential property. It's a terrible feeling to find out after you've jumped through hoops and over hurdles that you can't close on your new property because your lender didn't realize it was on acreage or has a high end horse barn that's worth as much as the home. While the type of property is not as important during the pre-qualification phase, it is critical that you choose a financial institution who offers rural or land programs, such as a bank or specialized mortgage broker. To assist you, we have included a short list of area mortgage brokers, lenders and banks that specialize in financing acreage property in the "Buying a Property" section of our site.
Here are a few more comments on what to consider as you look for your new home.
If at all possible, get a copy of the most recent survey. This will help you understand the layout and show you any easements or flood plain.
What is the accessibility into the property? Does it have road frontage or do you get to it by an easement? Is the road privately, city, county or state maintained? And if it's an easement, is it recorded? Is it shared by any other property owners? And if it is shared, is there a road maintenance agreement recorded? You'll also want to make sure what third party easements affect the property.
Consider the water source? In our area, it is usually supplied by a cooperative or private well. If it's a co-op, find out who the company is and go talk to them about water quality, reliability and get a copy of their membership agreement. If it's a well, find out if it is private or shared. Once again, if it is shared, you'll want to know with whom and ask for a copy of the shared well agreement. If there isn't one, consider getting one. Also, have the construction and mechanics of the well inspected and the quality of the water tested during your due diligence period.
Another fact of an acreage property is it will most likely be on a septic system. Find out the type, the age as well as where the tanks and distribution field are. If you want to add improvements such as a pool, make sure the septic system won't interfere. This is another item you will want a full inspection of.
Speaking of inspections, not all inspectors are qualified to thoroughly inspect water wells and septic systems. So just like choosing your lender carefully, do the same when scheduling an appointment with a property inspector. Tell them specifically what you want done and make sure they are qualified or can connect you with somebody that is.
Is high speed internet important? Most rural areas don't offer DSL or cable, so you'll need to make sure there is a reliable wireless broadband provider serving the area unless you'll be happy with dial up.
If you have horses, most horse people prefer a sandy loam soil. Although there are horses all over the Metroplex on every soil type, a sandy loam soil will make the time you spend outside riding or working with your horses much more enjoyable. If you want a sandy loam soil, a good rule of thumb in our area is to try to stay around the Hwy 377 corridor, which runs through Argyle, Aubrey, Pilot Point, Tioga, Collinsville, Whitesboro and Valley View, east of I-35.
You also need to understand that Texas is a mineral state and just because you buy a property doesn't mean you also get the mineral rights, and without the mineral rights, you don't control who can access the oil and gas below your land. Although it would be great to have 100% of the mineral rights transfer to you when you close on your new property, the likelihood of getting any is very small. It's just part of living in Texas. At this time, most of the mineral activity relates to gas wells around the Barnett Shale in western Denton (along and west of I-35) and Wise counties. Although there are some oil wells in our area, there doesn't seem to be a lot of new exploration going on, but this could change tomorrow, so do your homework if you have any concerns.
Most acreage properties are located in unincorporated areas, so there are very few zoning laws or ordinances governing them. To control what happens in a specific area, many property owners have added deed restrictions to control the land usage. These restrictions usually set the rules for everything from the housing size and type, number and kinds of animals that can be maintained as well as what you can use the property for. If this is a concern, or if you are buying the property for a specific use, you'll want to verify whether or not there are deed restrictions and what they are. Also, as the growth moves northward, most counties in our area have some control over what you can do with your property, so it makes sense before you start constructing a building, adding a driveway or building a pond, that you check with the county to insure you are acting within the law.
Another thing you'll want to find out is what type of tax exemptions are currently in place with the property. Agricultural and wildlife exemptions can significantly reduce your property tax liability, but there are restrictions associated with them. Once you find out what tax exemptions the property has, contact the county appraisal district and determine what you'll need to do to maintain them once the property transfers into your name. These exemptions will save you money year after year.
At texasliving.com, we specialize in homes on an acre or more, horse properties, ranches and land and would love to help you! All we need to get started is some information about what you are looking for. Just click here and we'll follow up immediately.
