In the first part of our series on how to buy a ranch, we gave an overview of the entire process. Now, it’s time to dive deeper into the first two steps: finding the right ranch and negotiating the terms to put the property under contract. Both of these steps can be more complex and time-consuming than you might think—especially when compared to buying a home. Working with an experienced land & ranch professional can make all the difference. Let’s explore why.
Step 1: Finding the Right Ranch to Buy
When buying a home, most buyers focus on location, size, and amenities. However, buying a ranch requires a different set of considerations. It's not just about the land itself—it's about its potential, how it fits your goals, and whether it can serve your needs for years to come. Unlike a home where an HOA or a city can help with unruly neighbors, land is typically located outside of city limits and has few to no zoning restrictions. Here are some of the key factors to keep in mind when searching for a ranch:
Land Use: Are you buying for agricultural purposes, hunting/recreational use, or investment? If you plan to use the land for hunting or recreational purposes, we recommend that you buy no more than 2 hours from where you live. For properties that you do not plan to actively visit, like investment properties, the driving distance is less important. How you plan to use the land determines everything from the amount of water you need on the property (it’s hard to duck hunt without a pond) to soil quality and land management practices.
Water Access: Unlike homes, ranches depend heavily on water access and access to water is not guaranteed. There are areas in North Texas where you cannot drill a water well or access to community water. A lack of water will adversely impact the value of the ranch now and in the future. If a property looks too cheap and like a deal, a lack of available water can be one of the main reasons.
Soil Quality & Grasslands: For grazing or crop production, the quality of the soil is crucial. You’ll also want to understand the type of vegetation and how it impacts land productivity. For example, sandy soil is good for hay production and hunting/recreation properties where black clay is better for farming.
Access to the Property: How you access the property is important. In Texas, the hierarchy of roads that you will find for rural properties is:
Interstate highway (ex. I-35)
US Highway (ex. 377)
State Highway (ex. 114)
Farm to Market Road (ex. 1187)
County Road
Some counties have paved all or most of their county road (ex. Somervell or Johnson County), but most counties have caliche county roads that they maintain.
How a Land & Ranch Professional Can Help:
Expert Property Evaluation: An experienced land & ranch professional can help you look beyond the listing to see the true value of a property. They’ll know how to assess factors like soil quality, water resources, and infrastructure, all of which directly affect the property’s utility and value.
Market Knowledge: Ranches are priced differently than residential homes. A land professional will analyze market trends and give you a clear picture of a property’s worth, saving you from overpaying or missing out on a great investment.
Area Knowledge: Land & ranch professionals know the areas that they work and are able to spot “warning signs” that could make for a bad investment. Some warnings signs that we try to avoid for our clients are areas north of feed lots, hog/chicken/turkey farms (the prevailing winds in our area are from the south in the summer and these tend to smell), junkyards, and landfills. Land prices are typically lower in areas like this because enjoying the property is more difficult.
Step 2: Agreeing on Terms and Putting the Property Under Contract
Once you’ve found the right ranch, the next step is negotiating terms and putting the property under contract. This phase is significantly different from buying a home, where the process is more standardized. So what makes ranch contracts different?
Unique Negotiation Factors: Buying a ranch often involves additional considerations such as water and mineral rights, livestock or equipment included in the sale, and even hunting leases. These elements require a different type of experience and expertise in negotiations.
Land-Specific Contingencies: Due diligence on a ranch can include environmental assessments, zoning regulations, access to water, and boundary surveys, all of which may be far more complex than a standard home inspection.
Financing Terms: Financing a ranch is more specialized than financing a home. Lenders may require a longer approval process or additional paperwork for agricultural loans, making it crucial to work with an agent who knows how to navigate land financing.
How a Land & Ranch Professional Can Help:
Negotiation Expertise: A land & ranch professional understands the unique aspects of ranch transactions and can negotiate terms that protect your interests—whether it’s securing mineral rights or adjusting the price based on water availability.
Navigating Complex Contracts: Contracts for ranch purchases are more intricate than home purchases. Your land & ranch professional will ensure that all terms, contingencies, and legal requirements are addressed, preventing issues down the line. We take the time to walk our buyers & sellers through the contract, answering questions that they might have along the way.
Due Diligence Support: From access to water to boundary surveys to when you actually get to start using the property, an experienced professional knows which contingencies to include in the contract and can recommend trusted specialists to assist with due diligence on the property.
Why Working with a Land & Ranch Professional is Essential
At every step, buying a ranch is more nuanced than buying a home. You’re not just purchasing land—you’re investing in a lifestyle, business opportunity, or long-term asset. By working with an experienced land & ranch professional, you get access to expert insights, resources, and negotiation strategies that can help you find the right property and get it under contract smoothly.
If you’re ready to take the next step in your ranch-buying journey, we’re here to help. Contact us today to get started.
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