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BUY LAND IN EAST TEXAS
Everything you need to know about buying land near Tyler and beyond.
Last updated January 5, 2022.
You’ve heard the old saying, “Nothing is certain except death and taxes.” Well, unless something changes dramatically, you might add “demand for Texas land” to that list.
For a long time, per-acre land prices east of Houston, up the Piney Woods past Tyler and into Texarkana, lagged behind other areas of the state. But there has been a rapid appreciation since 2020. The same holds true for large tracts of land in West Texas, and that trend looks like it will continue into 2023.
Hyperlocal land prices continue to spike in areas that are in the path of residential developments around Dallas, Fort Worth, Houston, Austin, and San Antonio, but the largest home developers have pumped the brakes as they head into 2023. However, the economic floor seems to be strong for per-acre prices in rural areas, and per-square-foot prices for land locations closer to major markets.
One Rock follows these prices closely, and before making a purchase of land or selling land, we always recommend taking some time to take a deep dive into the surrounding area to help understand pricing.
Of course, this environment is constantly changing and many would-be land buyers find it overwhelming. If this describes you, read on. Here are some questions to consider before you pull the trigger:
Why Are You Interested in Purchasing Land?
Let’s start with why you should not be in the market for buying land in Texas.
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Not because your brother-in-law told you about the Deal of a Lifetime™ at Thanksgiving
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Not because you heard a high pressure pitch on the radio or online. If you find yourself in a room with other buyers and high pressure sales representatives, you probably need to slow down and ask a local land realtor for advice.
The truth is, you don’t need a complicated reason to want to buy your own plot of land. Interest in purchasing land is innate. In fact, the Declaration of Independence almost said, “The pursuit of land ownership” instead of, “The pursuit of happiness.” It is a healthy desire, and our desire to cultivate land is healthy. A walk across your land is like a refreshing nap or a good exercise routine–there are benefits for your soul and health.
WHAT WE THINK
Hyperlocal land prices continue to spike in areas that are in the path of residential developments around Dallas, Fort Worth, Houston, Austin, and San Antonio, but the largest home developers have pumped the brakes as they head into 2023. However, the economic floor seems to be strong for per-acre prices in rural areas, and per-square-foot prices for land locations closer to major markets.
One Rock follows these prices closely, and before making a purchase of land or selling land, we always recommend taking some time to take a deep dive into the surrounding area to help understand pricing.
How Do You Buy Land?
First thing’s first. Start with the financing. You can use cash, of course, but there are other options as well:
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Land banks like Heritage Land Bank
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Community banks where you can lean on your relationship with a local banker
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“Uncle Billy.” In other words, sometimes family is willing to loan you money to buy land
Land sells like a home, with a deed that is transferred and recorded at the courthouse.
Do I Need a Survey to Buy Land?
ALWAYS get a survey. Land can convey with what is called a “metes and bounds,” but a new survey is always advisable. A new survey will provide the metes and bounds as well as a visual plat. Old metes and bounds can be hard to read and sometimes contain errors. Even if you pay with cash, a new survey is always advisable.
You can wait to order a survey after your option to purchase the land has expired and have it delivered before you close on the transaction. But there are still benefits of ordering your own survey:
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You're in control of payments and timelines
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You can communicate with the surveyor on items such as marking corners and putting out line stakes to visually see future fence lines, etc.
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You don’t have to share your survey unless you have agreed to, and there is value in possessing the survey
There are also benefits of the seller providing/ordering a survey:
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Saving time
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Saving money (sometimes seller and buyer agree to split the cost)
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The seller is more likely to order a new survey immediately upon contract execution. The seller will need a survey even if the buyer decides not to close, and the buyer can reimburse the seller if closing and funding occur.
Red Flags to Watch For
Purchasing property is a major decision. If any of these red flags pop up during the process, slow down and make sure you address them.
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No outline of land listed. It can be hard to see if the land has issues, such as no vehicle access, an undesirable neighbor, etc.
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"Great Recreational Property" is in the description. This probably means that the ONLY use is recreation. Typically, you’ll want some functionality as well. For example, if you want duck hunting land, it’s okay to have most of the land in the flood plain, but very often it helps to have at least a little land NOT in the flood plain, so you can park and/or build something that is not flooded.
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Owner or agent that pretends like you're asking stupid questions. It is okay to ask questions. Unless you’re the guy always asking questions and not bothering to hear the answers—the agent should never be anything less than polite or courteous in supplying answers.
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No call back, but text only. This is a favorite of characters who like to stay shrouded in anonymity. Purchasing land should be an open process with known sellers and known buyers. “Text only” should raise a flag.
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No flood plain listed. Very often, land has a portion of a flood plain in it, and it should be noted. If it is not addressed in the map or description, then you should pay careful attention to make sure you aren’t missing anything else.
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Less than 10 acres but not platted. Normally smaller tracts of land need to be platted. Talk to a local agent (and accountant) to make sure you are not getting yourself into a sticky situation when it comes to utilities, agriculture exemptions, and other tax issues.
Why You Should Work with a Real Estate Agent
The bottom line is this: Buying land is not a complicated process, but there are many other variables that should be considered. If you are not buying and selling on a regular basis, it’s easy to overlook one of these factors.
That’s why it’s advisable to work with a real estate agent. Our experts at One Rock can help you navigate your land purchase or sale, and we’d be happy to visit with you about pricing, mineral rights and other land rights, easements, road frontage, utilities, duck flyways, quail counts, development trends, surveys and more, including:
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Location: Consider the location of the land, including its proximity to amenities, schools, and transportation.
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Zoning: If you are approaching city limits, check the zoning of the land to ensure that it is suitable for your intended use. For example, if you want to build a residential property, you'll need to ensure that the land is zoned for residential use. There is no zoning in the county and there is no zoning in Houston!
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Utilities: Make sure that the land has access to utilities, such as electricity, water, and sewage. Possibly be prepared to drill your own water well or have a septic system installed.
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Topography: Consider the topography of the land, including any slope, flood risks, and soil conditions.
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Environmental factors: Check for any environmental issues, such as contamination or wetlands, that could affect the use of the land.
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Cost: Consider the cost of the land and whether it is within your budget.
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Future plans: Think about your long-term plans for the land and whether it is suitable for those plans.
Consult with a real estate professional at One Rock today! We work throughout East Texas and can help you assess the value of the land while advising you on any potential issues or challenges.