Buying Land. Explain It Like I'm 5.

[firemanjj82]

My wife and I are wanting to plan ahead and get an idea of where and how much, but I've never really looked much into it other than a general area and what I think would be a good price. A few questions...

- Does financing work the same as buying a house? (However much down, plus the interest and taxes to get a ballpark?)

- What are the requirements for building on Flood Zone A and X? (There's a couple pieces I've found that have this line cutting through.)

- Qualifications for AG exemption.

- Will the county extend the water line down the road by request, or is it better to do a well?

- General tips and overall advice is appreciated.

Thanks!

[Drycreek3189]

Financing works pretty much the same although sometimes you can a better rate depending on where you finance. At least you used to.

Can’t speak to flood zones but I wouldn’t build in one of any kind. I’ve seen 100 year flood zones get flooded two years apart. That’s a pretty short century.

AG exemption is different depending on the county. Contact the appraisal district for clarification. Mine is pretty straightforward and requires me to do no more than I would do on my own.

Water lines are usually owned by community water suppliers, sometimes they will, sometimes they won’t. Every now and then, they can’t support another user. I have a well, I like it that way.

Be sure it’s what you want before you commit. Walk every bit of it and look at possibilities both good and bad. Think about whether you can afford land payments as well as construction cost and other improvements.

If all of this passes your scrutiny, go for it ! They ain’t making any more of it.

[easeup]

yes on financing
I wouldn't buy in an area in flood zone A. The flood zone words for high risk are there for a reason. Even if your home doesn't flood the probability that your property be unusable for extended periods is still high.
Ag exemption on a property is already attached when you buy it are easier to keep than showing evidence for new ag activity for 5 years before the county tax district give it to you.
County water rules could be different than other counties. If you find a place with no well or rural water district water and you are really interested, just call and ask them.

all that said, my best advice is y'all sit down and say to one another, what is my vision for where we will be in the future, what will it look like, and what will we do with it. Agree on that. It makes shopping for land easier.

[rolylane6]

I dont think they will finance a 5 year old. You'll need cash.

Oh you said explain it like YOU were 5, not like I was 5. Sorry. Carry on.

[Txhunter3000]

Drycreek has it down.

[RMW]

You can build in a flood zone but your going to have to build it up over the flood plain, requires lots of dirt.

[HOOKNBULLET2]

Drinking water is the most important part.

I had 50 acres under contract just outside of New Braunfels 10 years ago. There were two different water utilities that served the area. But neither would extend the water line to me due to easement issues.

So I contacted a couple water well drillers. Both said the water under that land was not suitable for drinking water.

I ended up walking away from that and it still makes me mad to this day.

Make sure you have water.

[Kingfisher789]

Where do you want to live? How much money can you generate? It’s expensive to live in Texas

[Yak blue]

Go thru a land bank if you can. (Lone star ag credit, heritage, etc) You’ll get patronage divendends once a year. Usually comes out to .25% to .75 % off, depending on the year. Lone star ag actually has a neat little calculator to figure out your payments.

prepare for at least 20% down.

If the land wasn’t in ag exemption or wildlife exemption, I would keep looking. Lot of money lost in taxes if it’s not in one or the other. I pay like $2 per acre a year in taxes with mine in ag exemption.

flood plain, can’t help you much with. But one thing I would consider, not knowing where you are looking, weather patterns are weird. So are freak weather events.
If you are downstream of an urban area that has a sea of concrete in the near future, a 100 year flood plain build may flood more than that.

[PYBUCK]

Look at prices in the area for land that interests you. If you have to wait to save up for it, double what the land prices are now and save for that, then double it again. Ag exemption has to have a 5 year history of qualifications before you can get exempt unless you buy land that is already exempt, then you can take over the exemption. Most water supply districts won't come to you unless they have lines in the area, otherwise you have to pay out the wazoo to get them to your property. Building in floods zones require you to get above the flood plane to get financing and insurance. Good luck

[tps7742]

Drinking water is the most important part.

I had 50 acres under contract just outside of New Braunfels 10 years ago. There were two different water utilities that served the area. But neither would extend the water line to me due to easement issues.

So I contacted a couple water well drillers. Both said the water under that land was not suitable for drinking water.

I ended up walking away from that and it still makes me mad to this day.

Make sure you have water.

This is a must to check on water quality and availability prior to purchasing if at all possible. Or at least options on how to improve water quality if you chose to droll a well, wel depths, etc.

[TeamAmerica]

Water electricity and ag exemption already in place is key. If not you need to do some serious due diligence before buying. Talk to local banks first and plan on 20% down payment. Even if neighbors land are big tracts doesn't mean they can't subdivide it! Our neighbors sold a 1 acre spot to a family member and they dropped a mobile home about 50 ft from our fence line. It's not terrible but I want to plant some trees now for screening.

Good luck on chasing your dream!

[tps7742]

Water electricity and ag exemption already in place is key. If not you need to do some serious due diligence before buying. Talk to local banks first and plan on 20% down payment. Even if neighbors land are big tracts doesn't mean they can't subdivide it! Our neighbors sold a 1 acre spot to a family member and they dropped a mobile home about 50 ft from our fence line. It's not terrible but I want to plant some trees now for screening.

Good luck on chasing your dream!

Spot on here with your info. As a general rule when buying rural as the old saying goes you buy your neighbors.

[RiverBend]

I'm currently in the middle of the decision process for acreage in Brown County, this is what I have learned so far. Current interest rates are running a little over 9% with minimum of 20% down, 30 yr loans are available. County water runs along the county road fronting the property, $3800 to set meter, if the water line is opposite of your property, it's another $1500 to cross the road. Water wells are expensive, research what aquafer is under your property, well depth can vary greatly depending on the topographic lay of the land. Check for easements such as power lines, petrochemical, gas, etc. Ag exemption is transferable, but you'll have to maintain requirements. Building in a flood zone would not be recommended.
This is what I have experienced, your adventure will vary. Good luck.

[Danny44]

Figure out what you'll be using land for beside hunting, or what the current ag exception is on.
-If cattle, make sure fences are decent, and there is some source of water.
-If its timber property, have a forester look it over and estimate value or best practices to get it merchantable.
-Would stay away from non-ag exempt land unless its a great deal.
-Be-careful with flood plain, unless its a small portion, like a creek bottom or flooded timber

Possibly look at property with a home on it, you can get a better deal on interest rate and can go 5% down instead of 15%-20% down for unimproved land.
There are lots government funded programs out there as well. Get with the NRCS in the area you are interested in and see what they offer.