Commercial Real Estate News / Buying / 3 Steps to Buy Land for Sale in Texas

3 Steps to Buy Land for Sale in Texas

Published: 08-25-21 Category: Buying

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

Chisos Mountains in Big Bend National Park

This article was updated on 7/27/2023.

Texas's abundance of warm weather and spacious acreage have drawn millions of Americans to settle their boots in the Lone Star state. If you're one of those interested in buying land for sale in Texas, you may have been inspired by the rural lifestyle unique to the state with opportunities to hunt and take sanctuary from urban life.

Additionally, there is the freedom to develop housing and contribute to Texas's urban growth.

No matter your reason for buying land for sale in Texas, understanding the cost and value of owning land in Texas can further refine your decision-making process and lead to obtaining the best possible outcome for yourself.

How Much Does an Acre of Land Cost in Texas?

Texas acreage has historically been more affordable than other states', yet there has been an overall statewide price increase within the past few years. Texas's average cost of land was $3,251 per acre in 2021. As of Q1 2022, it was as high as $4,200 per acre. It's since moderated to about $3,800 per acre in 2023.

The prices do vary, however, by thousands of dollars across Texas regions:

$5,423 per acre in the Northeast region;
$7,069 per acre in the Gulf Coast-Brazos Bottom;
$1,702 per acre in West Texas;
$4,424 per acre in Central Texas, Austin-Waco-Hill Country;
$3,950 per acre in South Texas;
$1,120 per acre in the Panhandle and South Plains region.

Although the land for sale in Texas is not the most inexpensive in the country, it is not unaffordable. Compared to states like California (about $20,000 per acre as of 2023) and Florida (about $34,900 per acre as of 2023), Texan landowners believe the flexibility and ample opportunities their land offers match or exceed its price value.

Is It Worth Buying Land for Sale in Texas?

Depending on what you are looking to do with your land and how well that will coincide with the weather and lifestyle of Texas, buying land for sale in Texas can be a worthwhile investment that can reap lifelong benefits.

The 33.17% of property transactions in Texas since 2020 proves that demand is high and not without reason. The widespread desire to own Texas acreage stems from the numerous ways the land can be used and invested.

Here are some of the advantages of buying land for sale in Texas:

The ability to run private working land;
A cost-effective form of investment;
Opportunities to develop housing;
Private outdoor recreation;
Raw land tax benefits;
Flexible zoning laws; and
Beautiful scenery.

The process of finding and buying land for sale in Texas can be pretty straightforward; brokers and investors alike can browse Texas land for sale right here on MyEListing.com's website completely for free.

Step #1 — Define Intended Use

Deciding what you will use your land for will be necessary in your search for the right broker, sufficient land loan, and proper financing plan. There are differences in location, development, and access that you should distinguish before moving forward.

The majority of Texas's privately owned land is rural working land, including ranches, farms, and fields. Some may use their land as a retreat, a farm for a business, lease, or build urban developments either for themselves or the sake of profit.

You should ask yourself the following questions to clarify what you're looking for:

Will you use it as an investment or merely for personal use?
Will you want to develop on it, and if so, what would you build?
How much access to utilities, metropolitan areas, and roads would you need?
Will you use the land for hunting? For a ranch? For camping?
Will a part or all of your land be used for agriculture?

Having a clear idea of what exactly you will do with your land will create a seamless process for you when communicating with brokers and financiers.

Step #2 — Locate an Experienced Broker

If you're looking to buy land for sale in Texas, you should search for a broker based in or heavily experienced in dealing with Texas property. Additionally, you should utilize the specific characteristics that you're seeking in a property to refine your search.

For example, if you intend to buy a ranch, seek out brokers who specialize in buying and selling ranches.

Your broker should be a great listener and be in tune with your distinct needs when it comes to your new acreage. They can consider how close metropolitan areas are, zoning capabilities, utility access, the value of the land, and agricultural potential.

Make sure to check out testimonials and reviews of your prospective brokers and ask for references. Brokers can also help you find the right financing and fight for the most advantageous deal that can be offered.

Purchasing land is no small deal and your diligence in finding the proper help will give you the best chance of acquiring exactly what you're looking for.

Step #3 — Line Up Financing

Continue to consult with your broker as you start locating financing. Your choice for a land loan and lender will be determined by the characteristics of the property you're looking at.

Raw land loans are for plots without utilities or close road access. The lack of any development on these properties can seem enticing for those who want to work from scratch. However, these loans involve greater risk for lenders than do loans for developed land. It may be more challenging to be approved for a raw land loan without a clear definition of what you will use the land for.
Unimproved land loans are for acreage that is not entirely raw but not wholly improved. If you're planning to develop on land that has some utilities but still needs the implementation of other necessities, you may be looking at getting an unimproved land loan.
Improved land loans are for land that will be easy to work with and develop on. These loans are easier to obtain than unimproved land and raw land loans but are still more challenging than mortgage loans.

Although land loans can be less straightforward than other estate loans, your defined, intended use and your choice of an experienced broker can propel you towards investing in the rural land of your dreams.

Browse & List Land for Sale in Texas on MyEListing.com for Free!

You can use MyEListing.com's free search engine to browse & list land for sale in Texas. Set up customized property type notifications and enhance your search with advanced filters.

Start browsing and listing land for sale in Texas today.