If you're considering buying a farm or ranch in North Texas, you’re not alone. The demand for rural land continues to grow as more buyers look for open space, income-producing properties, and investment opportunities. Whether your goal is agricultural production, recreational use, or simply owning land away from the city, purchasing this type of property comes with specific considerations.
This guide offers a practical overview of what you need to know before entering the North Texas real estate market for farms and ranches.
Understanding Land Use and Zoning
One of the first things to evaluate when buying a farm or ranch is land use and zoning. Local and county governments regulate how land can be used, which directly impacts your plans for livestock, crop production, hunting, or commercial activity.
In North Texas, zoning classifications vary by county and can include agricultural, rural residential, and mixed-use designations. Always verify whether your intended use is permitted under local ordinances and restrictions. Additionally, properties that are part of a larger planned development or within city limits may carry stricter limitations.
Consulting a knowledgeable real estate professional familiar with rural properties in North Texas is essential. They can guide you through local regulations, zoning changes, and deed restrictions that may impact your investment.
Water Rights and Access
Water is a critical factor in evaluating any rural property. Whether you’re planning to raise cattle or irrigate crops, access to reliable water sources can significantly influence a property’s value and usability.
Farms and ranches in North Texas may draw water from wells, ponds, or surface water rights. You should determine:
- Whether the property includes water rights or easements.
- If existing wells are properly permitted and functioning.
- The cost and feasibility of drilling new wells, if necessary.
- Any seasonal variability in water availability.
Engage a licensed inspector to assess water sources and infrastructure. Also, confirm that the property complies with local groundwater conservation district regulations.
Soil Quality and Topography
Before buying a farm or ranch, it’s important to understand the land’s soil composition and topography. These factors influence the types of crops you can grow or the number of livestock you can support.
In North Texas, soil types can range from sandy loam to heavy clay. Each has different implications for farming efficiency and drainage. Rolling hills, flood-prone areas, or heavily wooded land can also limit usable acreage or increase land management costs.
A soil survey or analysis will give you a clearer picture of what to expect. Working with local extension offices or agricultural consultants can help you assess whether a particular property suits your long-term goals.
Infrastructure and Improvements
Not all farms and ranches come fully equipped. Some may have barns, fencing, corrals, irrigation systems, or other outbuildings, while others might be raw land with limited improvements.
When evaluating a property, consider:
- The condition and age of existing structures.
- Whether utilities such as electricity, gas, and septic are installed.
- Access roads and maintenance needs.
- The cost of building or upgrading infrastructure to meet your goals.
Factor these considerations into your overall budget and timeline. Building and infrastructure inspections are highly recommended before proceeding with a purchase.
Property Taxes and Exemptions
Texas offers agricultural and wildlife exemptions that can significantly reduce your annual property tax bill. These exemptions apply to land used for qualifying agricultural activities such as grazing, hay production, or wildlife management.
However, obtaining and maintaining these exemptions requires compliance with local guidelines. If a property previously held an ag exemption but is no longer in use, you could be responsible for rollback taxes covering the previous five years.
Before you buy, verify:
- The property’s current tax status.
- Whether you’ll need to reapply for exemptions.
- Your eligibility is based on intended land use.
A knowledgeable agent or tax professional can help ensure that you understand the financial implications and paperwork required.
Financing a Farm or Ranch
Financing rural property can be more complex than a traditional home purchase. Many banks view farms and ranches as commercial or agricultural investments, which often require larger down payments and specific loan structures.
You may want to explore:
- Farm Credit institutions that specialize in rural property loans.
- USDA or FSA loan programs, particularly if you are a first-time farmer.
- Land loans from local banks, which may include balloon payments or variable rates.
Before applying, gather detailed information about the property, including acreage, improvements, and intended use. Pre-approval will help you understand your budget and competitive position in the market.
Working with a Local Real Estate Expert
The rural property market operates differently than residential real estate. Market values can vary widely based on location, improvements, land productivity, and access to water. Accurate valuations require a deep understanding of these variables.
If you’re buying a farm or ranch in North Texas, working with a real estate agent who specializes in these types of properties is essential. They can:
- Help identify suitable properties that match your goals.
- Coordinate inspections, surveys, and zoning reviews.
- Negotiate terms based on current market data.
- Assist in understanding title history and land easements.
Explore North Texas Farms and Ranches Today
Buying a farm or ranch in North Texas is a significant investment that offers both financial opportunity and lifestyle benefits. However, it requires careful planning, due diligence, and expert guidance. Understanding zoning, water rights, soil quality, and tax considerations can make the difference between a successful purchase and unforeseen complications.
Whether you’re seeking income, recreational value, or a long-term land investment, North Texas offers diverse options for buyers ready to take the next step.
About The Luxe Global Group
The Luxe Global Group brings a high level of professionalism to every real estate transaction, combining strong marketing strategies, effective communication, and a commitment to service that sets them apart in the industry. Led by Hannah Gigley, an award-winning agent widely respected throughout Texas, the team is known for its trustworthy guidance and local expertise.
The group goes beyond simply closing deals—they build long-lasting relationships with clients and work to ensure that each person feels like a valued part of their extended network. Their approach centers on improving the real estate experience through personalized service and client-focused solutions that go well beyond expectations.
Contact The Luxe Global Group today for expert advice and personalized assistance navigating the North Texas real estate market.
