How to Buy Land in Texas: A Complete Guide for First-Time Buyers

Buying land in Texas is one of the best investments you can make — whether you're planning to build your dream home, start a ranch, or hold it as a long-term investment. As someone who personally owns over 90 acres in Wise County, I've been through every step of the land-buying process and I want to share everything I've learned to help you navigate it with confidence.

Why Texas Is One of the Best States for Land Buyers

Texas consistently ranks among the top states for land purchases, and for good reason. There's no state income tax, which means more money in your pocket. Property rights are strong — Texas is one of the most landowner-friendly states in the country. And compared to the coasts, you get significantly more land for your dollar.

North Texas, in particular, offers an incredible mix of affordable acreage, proximity to the DFW metroplex, and a rural lifestyle that many buyers are craving. Communities like Decatur, Bridgeport, and Boyd offer the perfect balance of country living with city convenience.

Types of Land Available in Texas

Before you start shopping, it helps to understand what's out there:

Raw Land — Undeveloped property with no improvements. You'll need to bring in utilities, drill a well, and install a septic system. This is the most affordable option and gives you complete control over development.

Improved Land — Property that already has utilities, road access, fencing, or other improvements. Costs more per acre but saves significant development time and expense.

Agricultural Land — Currently used for farming, ranching, or agricultural purposes. Often comes with an existing agricultural exemption that can save you thousands in property taxes each year.

Residential Lots — Smaller parcels in or near communities, often with utilities already available. Good for buyers who want less acreage but more convenience.

How to Find the Right Land

Work with a Local Agent

This is, honestly, the most important piece of advice I can give you. A local agent who specializes in land — not just residential homes — will know about properties that never hit the MLS. They'll understand the nuances of well water depth, soil conditions, flood zones, and county regulations that can make or break a purchase.

MLS and Online Listings

Sites like Realtor.com, LandWatch, and Lands of Texas are good starting points. But be aware that the best land deals often sell before they ever get listed publicly. That's another reason a local agent is invaluable.

Direct from Owner

Some of the best deals come from landowners selling directly. Drive the areas you're interested in, look for signs, and talk to locals. In communities like Alvord and Paradise, word-of-mouth is still one of the best ways to find property.

Auctions

County tax auctions and estate sales can offer below-market prices, but do your homework. Auction properties are typically sold as-is with limited opportunity for inspection beforehand.

Financing Your Land Purchase

Land financing is different from home financing, and it's one of the areas where first-time buyers get surprised. Here are your main options:

Land Loans

Traditional land loans typically require 20-30% down and carry higher interest rates than home mortgages (usually 1-2% higher). Loan terms are often shorter at 10-20 years. Local banks and credit unions in rural areas often have the best land loan programs.

USDA Rural Development Loans

If you plan to build your primary residence on the land, you may qualify for a USDA Rural Development loan. These offer favorable terms and low down payment options for properties in eligible rural areas — and much of Wise County qualifies.

Owner Financing

Many land sellers in Texas offer owner financing, which can be a great option for buyers who don't qualify for traditional bank loans. Terms are negotiable, and the process is typically faster and simpler than going through a bank.

Cash Purchase

If you have the funds, a cash purchase gives you the strongest negotiating position and fastest closing. You'll save on loan origination fees and interest, and you'll have a simpler transaction overall.

Due Diligence: Your Essential Checklist

This is where many buyers make costly mistakes. Before you sign anything, make sure you've covered these bases:

Survey

Always get a current survey. Property boundary disputes are common in rural Texas, and you need to know exactly what you're buying. An existing survey may be available, but if it's more than a few years old, consider getting a new one.

Water

In rural Texas, water is everything. Research the water table depth in the area. Ask neighbors about their well depths and water quality. If the property has an existing well, get it tested. In some areas of Wise County, you can also connect to rural water districts.

Utilities

Determine the cost of getting electricity, internet, and gas to the property. Electric cooperatives serve most rural areas, but the cost to run power lines to a remote property can be significant.

Soil and Perc Test

If you plan to install a septic system (and you will for most rural properties), you'll need a soil percolation test. This determines what type of septic system you can install and can affect the cost dramatically.

Zoning and Restrictions

Check for deed restrictions, HOA covenants, and county zoning regulations. This is especially important if you're planning to build a barndominium, as some areas have restrictions on metal buildings.

Flood Zone

Check FEMA flood maps for the property. Being in a flood zone can affect your insurance costs and building plans significantly.

Mineral Rights

In Texas, mineral rights can be separated from surface rights. Verify whether mineral rights convey with the sale. If they don't, understand what that means for potential future oil, gas, or mining activity on your property.

Access and Easements

Ensure the property has legal road access. Check for existing easements that could affect how you use the land, such as utility easements or neighbor access easements.

Understanding Agricultural Exemptions

One of the biggest financial advantages of owning land in Texas is the agricultural exemption. If your property qualifies, you could save thousands of dollars per year in property taxes. The land must be actively used for agricultural purposes — cattle, hay production, goats, bees, or wildlife management are common qualifying activities.

I manage ag exemptions on my own property and I've helped many buyers understand and maintain theirs. It's such an important topic that I wrote a complete guide: Understanding Agricultural Exemptions in Texas.

The Closing Process

Closing on land is generally simpler than closing on a home, but there are still important steps:

Purchase agreement — Negotiate terms including price, earnest money, inspection period, and closing date
Title search — A title company will verify clear ownership and identify any liens or encumbrances
Survey — New or existing, the survey will be referenced in your deed
Title insurance — Protects you against future title claims
Deed recording — The deed is filed with the county clerk to officially transfer ownership

Closing Costs

Expect to pay approximately 2-5% of the purchase price in closing costs. This typically includes title insurance, survey costs, recording fees, and any loan origination fees. In Texas, the seller traditionally pays for the title policy, but everything is negotiable.

Tips for Building on Raw Land

If you're buying land to build on, whether it's a traditional home or a barndominium, start planning early:

Budget for site prep — Clearing, grading, and driveway construction can add $10,000-$50,000 depending on the terrain and access
Plan your septic first — The perc test results may dictate where on the property you can build
Consider solar orientation — Position your home site for energy efficiency
Protect existing trees — Mature oaks and other native trees add tremendous value to your property
Plan for your driveway — A long driveway to a remote building site can be a significant expense, especially if you need to cross a creek or navigate steep terrain

Work with Someone Who Knows the Land

Buying land is different from buying a house. The complexities of water, utilities, easements, soil conditions, and county regulations require specialized knowledge. As a landowner myself and an agent who focuses specifically on land, barndominiums, and rural properties in North Texas, I bring personal experience to every transaction.

If you're thinking about buying land in Wise County or the surrounding North Texas area, I'd love to talk with you about your goals. Whether you're looking for a small homestead, a large ranch, or the perfect lot for a barndominium, I can help you find the right property and navigate every step of the process.

Contact me today to start your land search — I'm always happy to have a conversation about what's available and what might be the perfect fit for your vision.