What You Need to Know Before Buying Land in Texas

So, you’re thinking about buying land in Texas? Maybe you’re dreaming of building a home, starting a ranch, or just having some space to spread out. I get it—land in Texas is a hot commodity, and there’s something special about owning a piece of it. But before you jump in, there are a few things you need to know.

I’ve seen people make some fantastic land purchases, and I’ve also seen folks end up with land they thought was perfect—until they realized they couldn’t actually do what they wanted with it. Let’s break it down so you don’t make the same mistakes.

1. Unrestricted Land? Not Always.

One of the first things people look for is unrestricted land, meaning you can do whatever you want with it. Sounds great, right? Well, here’s the catch—many properties advertised as “unrestricted” actually have some restrictions.

There are a few ways land can be restricted, even if there aren’t official deed restrictions:

Zoning laws – Some counties or cities still regulate what you can build.
Municipal rules – You might not be able to have certain animals or build structures over a certain height.
Easements – The land might have power lines or pipelines running through it, limiting what you can do.

Even if your land is 100% unrestricted, remember—your neighbor’s land probably is too. That means they can set up a junkyard, run a dirt bike track, or start an outdoor shooting range right next to your peaceful retreat. If that’s a dealbreaker, make sure you check out the surrounding properties.

2. Deed Restrictions & HOAs – Read the Fine Print

If you’re looking at land with restrictions, read them carefully. These are set by developers or previous owners and don’t just go away because you don’t like them. Some common deed restrictions include:

Minimum home size requirements (e.g., must build a 2,000 sq. ft. home)
Time limits for building after purchase
No manufactured homes or barndominiums
Limits on animals or commercial use

Some land will also be in a neighborhood with an HOA (Homeowners Association). HOAs can control everything from house colors to whether you can park an RV in your driveway. If you want complete freedom, HOA land is not for you.

3. AG & Wildlife Exemptions – Save on Taxes

Texas landowners can save thousands on property taxes with an agricultural or wildlife exemption. But here’s the thing—you can’t just apply for one and get it overnight. It typically takes 5-7 years of proving agricultural use (like running cattle, keeping bees, or farming) before you qualify.

Best bet? Buy land that already has an exemption. I’ve seen properties go from $2,000 in taxes per year to under $200 because they had an exemption in place. If you’re buying a large plot and plan to hold onto it for years, this is something you’ll want to consider.

4. Financing & Lenders – Pick the Right One

Not all lenders handle land purchases the same way. Some banks that specialize in home mortgages might not even approve a land loan, or they’ll require you to remove an AG exemption (which is not what you want).

I always recommend using a lender that specializes in land, like Texas Farm Credit or other rural land lenders. They understand the process and won’t cause you last-minute headaches.

5. Pipelines, Floodplains & Mineral Rights – Do Your Homework

Texas has a lot of underground pipelines, and you do not want to buy land without checking if one runs through it. A pipeline easement means you can’t build on or near that part of your land.

Other things to check before buying:

Floodplains – Even if it “looks” dry, check FEMA flood maps.
Mineral Rights – In Texas, most landowners don’t own what’s beneath the surface. If you want to drill a well or prevent oil companies from drilling on your land, you need to verify mineral rights convey.

6. Airbnb & Hunting – Can You Actually Do It?

Want to rent your land out as an Airbnb or use it for hunting? Double-check the rules first.

Airbnb: Check deed restrictions, HOA rules, and city/county regulations.
Hunting: Generally, you need at least 10 acres to legally hunt, and it must be outside city limits. Some neighborhoods allow hunting, while others strictly prohibit it.

7. Land Auctions & Builder Restricted Lots – Be Careful

If you’ve ever received a flyer about a land auction or special sale, here’s what’s happening: Developers buy large ranches, divide them up, and market them aggressively. When you show up, you’ll hear things like “Lot 15 just sold! Only a few left!” to pressure you into buying.

These deals aren’t always bad, but you need to:

Ignore the hype and take your time.
Read the deed restrictions carefully.
Check for hidden fees.
Make sure you’re getting what you actually want.

Similarly, Builder Restricted Lots might seem tempting (buy land, use their builder, done!), but they take away your choice in contractors. Custom home builds have a huge range in quality, and you want to pick the best builder for your needs, not just the one selling the land.

Final Thoughts

Buying land in Texas can be an amazing investment—if you do it right. The key is doing your homework:

Know the restrictions before you buy.
Check for floodplains, pipelines, and mineral rights.
Look into tax exemptions if you’re buying large acreage.
Choose the right lender so you don’t lose benefits like AG status.

The best way to avoid surprises? Work with someone who knows Texas land. Whether it’s a realtor, a land specialist, or just doing deep research, going in prepared will save you a lot of stress (and money) in the long run.

Got questions? Drop them below—I’d love to help! 😊

-Michael Stephens, REALTOR