South Texas is an exceptional place to own your first parcel of land. Before setting out on the exciting process of buying acreage, ask yourself these questions to guide your decision-making from start to finish:
Why are you buying land?
Are you looking for a lot to build a residential property or are you interested in maximizing the land for agricultural or commercial production? Do you want to develop a recreational property or own acreage to lease out?
Be clear idea with what you want to use the property for. This will guide the rest of your decisions throughout the buying process. Decide on specific and attainable goals so you can narrow down the selection of properties available based on your particular purpose.
How will you pay for the purchase?
While wealthy land buyers can pay cash up front, it’s common for many buyers to finance the purchase using a mortgage.
If you belong to the latter group, learn where you can secure a loan designed for financing rural land purchases, especially if you are eyeing properties that exceed 10 acres. These specialists will explain the processes and requirements to secure your loan, recommend insurance, and explain any property tax discounts to which you may be entitled.
Do you have an agent?
Getting assistance and insights from a local real estate professional pays dividends in ensuring a smooth land buying experience, especially for first-time buyers.
Discuss your goals and consult with your agent closely throughout the process to make sure that you are on track with your buying goals. From guiding you through the selection of properties for sale, to representing your best interests when negotiating with the seller, to accomplishing every detailed requirement necessary to finalize the deal, your agent’s expertise is the best resource you have at your disposal.
Is the land in a groundwater conservation district?
Find out if the land you want to buy is located in a groundwater conservation district (GCD), which are designated areas where the use of the land’s underground water reserve is regulated. If it turns out that the property is in a GCD, local restrictions may significantly limit what you can do with the land.
While state law requires land sellers to disclose whether or not their property – or just a portion of it – is on a GCD, the legislation does not require them to find out. So it’s up to you to investigate and research this important detail.
Do you understand your mineral rights?
In Texas, where crude oil and natural reserves can be found beneath sprawling parcels of land, mineral rights are important elements of a real estate deal. Because of the potential of these mineral resources to earn their owner significant profits, present landowners may opt to sell the land while holding onto the mineral rights.
In this case, you can use the land as your own property after you buy it, but the previous owner still has the right to access the mineral resources through drilling activities. It’s in your best interest to arrange for provisions in your purchase deal to protect yourself from any damage to the property or road use resulting from such activities.
For all your land buying needs in South Texas, trust only Desert Flower Realty. Call our real estate specialists today at 361.449.2051 or email your inquiries to DesertFlowerRealty(at)DesertFlowerRealty(dotted)com.