For many people, the dream of owning a ranch is idyllic and deeply ingrained. Whether you’ve been planning for decades to purchase a ranch of your own, or you simply feel that now might be the right time to break into this market, you’re probably equally interested in finding some useful tips for buying a ranch.
This ranch buying guide will shed some light on what to think about when buying a ranch so you can feel confident that you have considered the purchase from all possible angles and selected the perfect property for your goals and desires.
Southwest Ranch Market
As cities become more crowded, folks who prefer a little bit of breathing room are beginning to flock to wide-open spaces. There are quite a few reasons that the Southwest ranch market is booming; some of the most enticing include:
Property tax breaks: In Texas, you can qualify for several property tax exemptions which cut your yearly costs by thousands when you purchase ranch land.
Utility availability: You won’t have to give up modern amenities when you buy your slice of remote wilderness; even if providers can’t get running water to your property, you can always drill a well.
Affordability: Although plenty of people are beginning to realize just how desirable ranch land is in the Southwest, the market is still rather affordable so it’s the perfect time to buy.
There’s no doubt that there are some huge perks to purchasing a ranch in the Southwest, but there are also some important factors that you need to think about before you take the plunge.
5 Things to Consider Before Buying A Ranch
Of course, there are dozens of considerations that a real estate professional will discuss with you before a sale is final, but these are some of the most important factors to mull over initially.
1 – Look into Codes and Restrictions
Before you find a property and get your heart set on any grandiose updates, make sure that they’re even possible with local laws and regulations. For example, if you purchase a large swath of land that you’re hoping to develop as a subdivision, you may run into local regulations that bar you from carrying out your vision. You’re better off checking into these things right from the start.
2 – Think About Environmental Factors
When you are purchasing a ranch, you should be especially cognizant of any endangered species, and any prior contamination — both of these things could pose difficulties for you in the future. Work with a professional who knows which questions to ask so you aren’t left in the position of having your land’s uses restricted.
3 – Set Your Budget Ahead of Time
If you know what size of ranch you can afford before you begin shopping around, you’ll avoid a whole lot of heartbreak and headaches down the road. It’s also important that you don’t purchase a property that requires literally all of your capital, because you will inevitably need to invest some amount of money in small maintenance matters.
4 –Take Note of Any Improvements
Does the property you just visited have a barn that obviously needs extensive repairs? Perhaps the ranch has miles of fencing need replaced entirely. These are bargaining chips that you can use to drive down the price of the property, so make sure to remember them for when the time comes.
5 – Ask About Infrastructure
Although it should be possible to get utilities to your property, it will require extra work on your part if it hasn’t already been done. In some cases, an especially rural area may not even have any roads leading to it; consider the amount of effort that setting up this infrastructure yourself will take and be sure to ask these questions at the outset.
Ranch Types & Other Land Types to Consider
Some of the most popular ranch types include:
The reality is that you can get creative and tailor your ranch to whatever your precise goals are, though.
Cost of Maintaining A Ranch
Maintenance costs depend upon what you choose to do with your ranch. For example, you’ll obviously want to plant game plots if you’re utilizing your ranch for hunting, and you’ll want to ensure that your fencing is up to par if you’re going to keep cattle.
Certain costs are streamlined for all ranches, such as property taxes and road upkeep, but these also vary depending upon the size and location of your property, particularly because exemptions apply to certain types of ranches.
Buying a ranch is an exciting time for anyone but be sure to do your due diligence and take all these factors into consideration before jumping into a purchase. When you’re ready to find the perfect property, take a look at all that Land Broker MLS has to offer, or contact a broker.