When buying a ranch, one step that should not be overlooked is checking the flood plain status. The new Texas farm & ranch contracts take steps towards providing the buyer with information about flooding, but this disclosure is not perfect. Knowing whether a property is in a flood plain can significantly affect your ability to develop it, how you can use the property, and ultimately its resale value. Let’s talk about what a 100-year flood plain is, how it might impact your property, and the rare cases where it could actually work to your advantage.
What is a 100-Year Flood Plain?
The term “100-year flood plain” is a bit misleading. It doesn’t mean that flooding will only happen once every 100 years. Instead, it refers to an area with a 1% chance of flooding in any given year. These areas are identified and mapped by the Federal Emergency Management Agency (FEMA) to help property owners understand potential risks. The simplest way to find if a property is in the 100-year flood plain is to visit the official source from FEMA - FEMA Flood Map
Flood plains can vary in size and severity—from small creeks that occasionally overflow to large, expansive areas around major rivers. In North Texas, some ranches may have sections of land in a flood plain, which is why it’s essential to review these maps before making a purchase.
How Does Being in a Flood Plain Affect Your Property?
1. Development Restrictions
If your ranch is in a flood plain, you may face restrictions on where and how you can build. This includes barns, homes, and other structures. Building in these areas often requires additional engineering, dirt work, or elevated foundations, which can drive up costs or make building not practical.
2. Impact on Land Use
Flood-prone areas can limit how you use the land. Farming or running livestock in these areas can be risky, as flooding can wash away crops, damage fences, or pose dangers to animals. Farming in the flood plain will typically result in better yields unless the crop is washed away or flooded for too long. Livestock are usually able to seek higher ground when flooding occurs as long as fencing allows a place for them to go. After a flood event occurs, you’ll want to keep livestock out of the area until it dries out.
3. Resale Value
Properties with significant portions in a flood plain may be less attractive to future buyers. If you’re thinking about long-term investment, this is an important consideration. Typically, floodplain at the front of the property or a wide swath that cuts across the entire property are the biggest hurdles to resale value because of the impact on development.
When a Flood Plain Can Be Beneficial
While flood plains are generally seen as a limitation, there are specific circumstances where they can offer some benefits:
Natural Water Features
Flood plains often come with creeks, ponds, or wetlands, which can enhance the aesthetic and recreational value of the property. They can also attract wildlife, making the ranch ideal for hunting or birdwatching enthusiasts.
Improved Soil Conditions
Periodic flooding can deposit nutrient-rich sediment, improving soil fertility over time. This can be beneficial for certain types of crops or for enhanced pastures for grazing.
Creative Uses
Floodplains may have development limitations, but they can offer opportunities for creative and productive uses like golf courses, green space areas required in most developments, or larger, premium lots in a future development.
How to Check Flood Plain Status
Before buying a ranch, always review flood maps for the property. These maps are available through FEMA or local government offices. We always review flood maps when available for a property as part of our due diligence checklist to understand how much of the property is affected. In some cases, a property may only have a small portion in the flood plain, which could be manageable. For example, if the flood plain is limited to a section of the ranch away from key infrastructure or high-use areas, its impact on your overall plans may be minimal.
Understanding flood plain status is a crucial part of evaluating a ranch. It’s not just about knowing where the water might rise—it’s about understanding how it could affect your lifestyle, operations, and financial investment. Whether it’s ensuring the land suits your development plans or factoring in insurance costs, this is one area where you don’t want surprises.
With nearly 25 years of experience in land and ranch real estate, we’re here to help you navigate these complexities. Let us help you find a ranch that fits your vision and meets your needs—flood plain and all.
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