Common Land-Buying Mistakes to Avoid in Texas in 2026

Buying land in Texas can still be one of the smartest ways to build a home, grow a ranch, or diversify your investments—but today’s market rewards preparation and punishes shortcuts. Recent data shows buyers are trending toward larger properties, with tract size rising 12.4% year-over-year to 425 acres in 2024, according to the Texas Association of Farm and Mineral Land Brokers (TAFMRA). At the same time, competition remains real: annualized sales volume increased 21.41% in 2024 to 76,161 acres, also reported by TAFMRA.

Even with residential real estate cooling slightly—home values across Texas dipped by an average of 0.08% in 2024 per Independence Title—rural land pricing and demand vary dramatically by tract size and region. That’s exactly why avoiding the most common land-buying mistakes matters more than ever.

1. Skipping due diligence on the property’s history and legal status

Land isn’t a simple “what you see is what you get” purchase. Before you negotiate price, confirm what you’re actually buying.

• Research past uses and environmental issues. Former dump sites, oilfield activity, illegal fill, and old structures can create cleanup costs, permitting delays, or future liability.
• Verify zoning, deed restrictions, and permitted use. Your plans—homesite, RV use, commercial storage, hunting operation, or subdivision—may be limited by local rules or recorded restrictions.
• Confirm boundaries with a survey. Fence lines and “handshake” boundaries often don’t match legal descriptions.

2. Misjudging the market by ignoring tract-size pricing differences

Texas land prices don’t move as one market. Smaller tracts often price very differently than larger ranches, so “price per acre” depends heavily on size, location, and access.

• Large-tract reality: Texas rural land prices for large tracts averaged $4,776 per acre with a +1.88% annualized change in 2024, according to the Krebs Rural Land Update (TAAD).
• Small-tract premium: The Texas small rural land market statewide averaged $10,242 per acre with a 6.42% change in 2024, per the Krebs Rural Land Update (TAAD).

Overpaying usually happens when buyers compare the wrong comps—such as using large-tract pricing to justify a small-tract offer (or vice versa).

3. Assuming demand is uniform (and missing what sales volume is signaling)

Market activity can be strong even when certain segments soften. That mismatch creates pricing traps for buyers who don’t verify current momentum.

• Overall activity increased: Annualized sales volume rose 21.41% in 2024 to 76,161 acres, per TAFMRA.
• But small-tract volume slipped: Texas rural land small tracts statewide sold 29,523 acres, down 2.35% in 2024, according to the Krebs Rural Land Update (TAAD).

Translation: you can’t rely on headlines. You need segment-specific data (your region + your tract size) before you decide what a “fair deal” looks like.

4. Underestimating water rights, water access, and long-term supply

In Texas, water can determine whether land is buildable, usable, or financeable. Many buyers focus on the view and forget the fundamentals.

• Confirm water rights and rules. Surface water, groundwater districts, and shared wells all come with different constraints.
• Validate actual access. If there’s a well, request records and test it; if there isn’t one, price the cost and feasibility of drilling.
• Plan for drought conditions. The “good year” performance of a well or tank doesn’t guarantee the “bad year” reality.

5. Buying a property without guaranteed legal access and utility feasibility

A land deal isn’t a deal if you can’t legally reach the property or afford to power it.

• Confirm deeded access. An easement you can’t enforce—or a road you can’t legally use—creates immediate resale and financing problems.
• Budget for infrastructure. Electric extensions, driveway construction, internet availability, septic systems, and water development can easily reshape your total cost.

6. Treating “raw land” like a finished lot (and ignoring the true all-in cost)

Raw acreage can be a great value—but only if you price the total project, not just the purchase price.

• Development costs add up fast: clearing, fencing, gates, culverts, pads, utilities, water improvements, and soil work can rival the land cost on smaller tracts.
• Don’t forget recurring expenses: taxes, liability coverage, road maintenance, and periodic brush control belong in your annual budget.

7. Ignoring flood risk, drainage, and soil quality

Texas weather can turn a “perfect spot” into a recurring problem. You want proof, not promises.

• Check flood maps and on-site indicators. Low-water crossings, sediment lines, and washouts tell you how water behaves when storms hit.
• Evaluate soils for your intended use. Poor percolation can complicate septic; weak soils can increase foundation cost; certain ground types limit roads and ponds.

8. Overlooking mineral rights, leases, and surface-use impacts

In Texas, surface rights and mineral rights often split. If someone else owns the minerals, they may have legal rights to use the surface in certain ways.

• Determine what conveys. Don’t assume minerals transfer with the land.
• Investigate active or prior leases. Existing agreements can mean future activity, road use, or equipment access—even if the land looks quiet today.

9. Failing to account for regional pricing differences (especially on small tracts)

Location can outweigh everything. In 2024, small-tract pricing varied sharply across Texas, so “statewide average” can mislead you.

• West Texas: West Texas small rural land sales price averaged $7,473 per acre, up 13.03% year-over-year in 2024, per the Krebs Rural Land Update (TAAD).
• Northeast Texas: Northeast Texas small rural land sales price averaged $14,559 per acre, up 9.81% in 2024, according to the Krebs Rural Land Update (TAAD).
• South Texas: South Texas small rural land sales price averaged $14,728 per acre, up 4.54% in 2024, per the Krebs Rural Land Update (TAAD).
• Austin–Waco–Hill Country: Austin-Waco-Hill Country small rural land sales price averaged $14,164 per acre, up 1.43% in 2024, reported in the Krebs Rural Land Update (TAAD).

These gaps affect everything: negotiation strategy, resale expectations, and whether improvements will actually increase value in your submarket.

10. Rushing the decision instead of stress-testing the property in real conditions

Land can feel like love at first sight—but a quick visit rarely reveals the full story.

• Visit more than once. Walk the property after rain, check road conditions, and observe nearby activity on weekdays and weekends.
• Bring specialists early. A surveyor, lender familiar with land, soil professional, well driller, or wildlife/land consultant can surface deal-breakers before you close.

11. Misunderstanding land financing and tax consequences

Land loans typically come with different terms than home mortgages, and taxes can change after purchase—especially if an agricultural valuation is removed or re-evaluated.

• Talk to land-savvy lenders. Underwriting often depends on access, utilities, improvements, and intended use.
• Plan for the tax path. Ask how current exemptions apply, what’s required to maintain them, and what happens if the use changes.

12. Forgetting the exit plan (even if you plan to keep it forever)

Your needs can shift, and the market can move. A smart purchase considers the future buyer, too.

• Match the property to multiple future uses. Access, water, and usability matter for resale.
• Buy with realistic liquidity expectations. With tract size trending upward—up 12.4% to 425 acres in 2024 per TAFMRA—you should decide whether your ideal buyer later is a large-tract purchaser, a small-tract lifestyle buyer, or a developer.

Final thoughts

Texas land can be an incredible long-term asset, but today’s environment demands more discipline than ever. Prices differ sharply by tract size and region, and the data backs it up—from large tracts averaging $4,776 per acre to small tracts averaging $10,242 per acre statewide in 2024, as reported by the Krebs Rural Land Update (TAAD). If you do your due diligence, verify water and access, understand mineral rights, and budget for development, you’ll avoid the mistakes that turn a great deal into a costly lesson.

Frequently Asked Questions (FAQs)

How long does it usually take to buy land in Texas?

Many deals close in 30–90 days, but timing depends on survey scheduling, title work, financing, easements, and how quickly inspections and negotiations move.

Do I need a real estate agent to buy land?

You don’t have to use an agent, but a land-specialized professional can help you interpret restrictions, locate reliable comps, and spot access, water, and title issues early.

What down payment should I expect for a land loan?

Land lenders commonly ask for larger down payments than home mortgages. Many buyers should plan for 20%–50%, depending on property type, improvements, and borrower qualifications.

Will I pay property taxes on undeveloped land?

Yes. However, some properties may qualify for agricultural valuation or other exemptions if you meet eligibility requirements and maintain qualifying use.

Can I live in an RV on my land?

Sometimes—but it varies by county, city limits, subdivision restrictions, and utility/septic requirements. Confirm local rules and any deed restrictions before you buy.