There are few professions more timeless and more rewarding than farming, so it’s little wonder if you’re drawn to the idea of buying a farm in Texas. Still, you may find that you feel somewhat lost when you try to ponder what to consider when buying a farm—you likely know there are plenty of important considerations, but you may not be sure of precisely what they are.
Our farm buying guide will offer some insight into some of the most important facets of buying a farm in Texas so you can complete your purchase with total confidence.
Southwest Ranch Market
Over the course of the last decade, rural properties have become increasingly popular, particularly in the Southwest. This is due in part to the fact that urban sprawl has eaten up all the land surrounding cities, but also to the fact that many people are realizing that remote property offers large earning potential.
Nowhere is this truer than in Texas. Some of the largest benefits of purchasing a farm in Texas specifically include:
Property tax exemptions and federal income tax write-offs.
The freedom to develop your land as you wish.
A wide range of financing options.
While there’s no doubt that buying a farm in Texas is a solid investment, you should still take note of certain considerations as you begin looking at properties.
5 Things to Consider Before Buying Properties
As with any other purchase, it’s important that you take all relevant details into account before you buy your farm in Texas; these are some of the most vital facets to think about.
1 – Conduct Research to Get A Fair Price
As the farm market in Texas climbs, sellers may be inclined to set the price of their property too high. Be sure to perform market research so you have a clear picture of what’s fair and what’s not; you can also rely on an experienced realtor to help guide you away from poor investments.
2 – Know the Value of Existing Improvements
If a property already has barns or other structures that are in good condition, that can significantly drive up the value of the farm because (as you likely know), those buildings are rather expensive to construct. Be sure to take these sorts of improvements into account when you’re making an offer.
3 – Think About Surroundings
Are there other farms nearby? Will they pose any difficulties with the sort of farming that you intend to perform? Is there a highway nearby that will make it difficult to move your equipment easily? These are the sorts of questions that you will want to answer as early as possible.
4 -Look into Environmental Constraints
Sometimes, farmland has been contaminated by past owners who don’t even realize that they’ve done something wrong; the problem is, once you buy a piece of contaminated land, it’s your problem to deal with. This is also true if an endangered species lives on your property. Investigate these issues before you make a purchase.
5 -Develop A Realistic Budget
When thinking about what you can spend on your farm, be sure to consider the costs of maintenance and upkeep as well.
Texas Farm Types and Sizes to Consider
The great thing about buying a farm in Texas is that this state is absolutely massive, so whether you want a piece of property that’s just a couple thousand acres, or an absolutely sprawling expanse of land, your needs can be met. Some of the farm types you might find include:
Of course, within each of these categories there are a number of subcategories, so the options are virtually limitless.
Cost of Maintaining A Farm in Texas
Precisely how much it costs to keep up your farm depends on which type of farm you pursue and where exactly you choose to purchase your land. For example, the cost of irrigation will be far loftier if you choose to farm rice than if you choose to keep cattle. Property taxes, equipment and building upkeep, and other universal considerations will be maintenance costs you can expect to incur regardless of the type of farm you select.
Why Use A Realtor to Purchase?
As purchasing Texas farms becomes more popular, it becomes more difficult to do it on your own. A realtor will be able to guide you toward the best properties for your specific needs and ensure that you aren’t paying an excessive price just because you aren’t familiar with the area.
What’s more, realtors can help you with some of the more technical aspects of purchasing land, like understanding how to handle financing and navigating the topic of mineral rights. When you’re ready to find the perfect farm in Texas, contact a broker, or take a look a Land Broker MLS to see all that the Lone Star State has to offer.