Top things to consider before buying a ranch

Owning a ranch can bring you myriad benefits and pleasures. It can be a profitable business, your very own retreat – or both. But a ranch is also a substantial investment. In buying one, you need to weigh several factors to make sure you’re getting your money’s worth and fulfilling your ownership objectives.

Here are some of the most important elements to consider.

1. Intended use

   How will you use the ranch? Do you plan to live a completely agricultural lifestyle and live off the land? Will you be raising cattle or producing hay, or using the land for hunting or waterfowling? Do you intend to open it for public recreational use or profit from it through livestock or other produce?

   What you want to do with your ranch will determine the features you should look for in one, including the type of soil, bodies of water, abundance of pasture, zoning regulations, irrigation, and others.

2. Location

   If you plan to make the ranch your permanent home, consider accessibility to shopping centers or grocery stores where you can get your daily supplies. If the ranch is a secondary property, it should be a convenient driving distance from your main home so you and your family can make frequent visits, or spend more time in the ranch instead of driving to it. One thing to keep in mind, however, is that ranches in more remote locations are generally priced lower.

3. Budget

   Determine how much you’re willing and able to spend. Get pre-approval from a lender to help you see how much mortgage you can obtain. Consider, as well, the cost of improvements you need to make.

4. Water rights and access

   Understand water rights in Texas and check into existing water permits of a property for sale. Rights depend on the water source and its location, as well as how you plan to use the water.

5. Access to the ranch

   Check the condition of the roads going to the ranch. Think, too, of whether you need to pass through another person’s property to get there. If so, what are the conditions involved?

6. Understand easements that come with a property

   Easement refers to the right to cross the land belonging to another person or to use part of their property for some other purpose. If you need a driveway easement to get to a property, consider the possibility that the land you’re eyeing may include its own easement allowing others to pass through your property.

   Other easements include:

   • A utility easement, which allows utility companies to erect structures in the property.
   • A conservation easement, which means a portion of the land should be spared from development to protect its wildlife and other features. A conservation easement may come with a payment from a conservation body and/or tax benefits.
7. Zoning and deed restrictions

   While large acreages in Texas come with little zoning restrictions, many more come with deed restrictions that regulate land use. These include the size and type of housing that may be built, the use of the property, and the type of animals owners are allowed to raise.

8. Mineral rights

   Texas is a mineral state, and ownership of a property does not automatically give you mineral rights to that property. Look into the laws and regulations related to mineral rights and how these affect your privileges as the property owner.

9. Utilities

   In addition to water, check into other services, such as reliable electricity supply and internet access, especially if the area is off the grid. You might want to consider investing in solar-powered equipment or solar panels to generate the electricity the ranch needs.

Buying a ranch is more complicated than buying any other property type, so make sure you get expert, professional guidance. We’ll be happy to help you find the right property. Get in touch with me, John Walker, at 361-449-2051 or at desertflowerrealty@desertflowerrealty.com.