Archives for January 2022

Preparing Your Texas Land or Ranch for Sale

January 27, 2022 by chorton Leave a Comment

Preparing Your Texas Land or Ranch for Sale

You have now decided to sell your land or ranch. You have to prepare it just like a house seller. You have to make it as showcase-ready as possible and within the scope of work and money you can shell out.

First, find an experienced real estate agency that handles raw land and ranches. Experienced raw land and ranch realtors are more knowledgeable about the market and what buyers are looking for. They have a sharp eye for what needs to be developed or tweaked in the property before displaying it to prospects, as well as features that will add or subtract to the value of the land.

Now Let’s Get To Work

Put yourself in a buyer’s shoes – what key features or elements are you looking for in a ranch or land?

Your fence should be in top shape, or the best you can do. Fix loose or broken wires and replace posts that have seen better days. If you have electric fencing, make sure these are operational without you being electrocuted. Yearly cleanup of overgrowth of land near the fences would save you time and money; however, if you’ve neglected it, a once-over is advisable so buyers can see the fences. For areas without fences, mark them with “T” posts or stakes, so buyers will see the boundaries of the property.
Give them the grand entrance – Fix the gate. A working and presentable gate gives the impression that the property is well taken care of. A gate that opens and closes well without any insect nest or grass covering it gives a good first impression. It doesn’t have to be new, just working, not hard to open or close and fresh paint will do the trick. If you can spare the money and time to install a new one, that would be even better.
Buyers are always in awe whenever there are great views or water features on a property. Make sure river or lake banks are clean, free from trash, debris, and other obstacles. Enhance viewing spots by keeping them clean, trimmed, and mowed as well as the path to get there. It’s like when showcasing a house; you are enhancing the best features to stir up the imagination of buyers what they can do to the property – for them to imagine the further potential of the ranch.
Concerning the viewing pleasure of potential buyers, make sure all viewing spots to see the whole property are accessible without being tangled in shrubberies or anything that can deter them from touring or walking through the area.
Speaking of accessibility, if your property is landlocked, make sure you have a documented easement agreement with your neighbor or neighbors that gives access to the land. Aside from the agreement, make sure that easement access or the road leading to your land is accessible and direct, so as not to create confusion on which property is on sale and not enter your neighbor’s land.
Clear out all the trash and junk that stick up like sore thumbs from the pristine views. Junk and trash such as rusting vehicles, wires, or metal pipes should be cleared out. That also includes the shell casings of guns from the last shooting party with friends and family. You want to give the best impression to buyers that they are buying a prime piece of property that’s well taken care of. This will give them the idea of the potential of the land, and possibilities for income generation or leisure activities.
For still useable stockpiles of wood, pipes, bricks, automobile parts, and other knick-knacks, organize them in one place. These things can still look presentable as long as you arrange them in an orderly manner.
Of course, you also need to stage the main house, barn, or any other structure, adding to the curb appeal of the property. A fresh coat of paint, roofing repairs, amenities such as HVAC, insulation, water supply, and heating are the usual home features the buyers will be checking.

After tending to the physical aspects of the property, it’s time to look after the paperwork, documents you need to have on hand.

Land title, real property tax receipts, easement agreements, and water rights are the basic papers that need to be on hand, to be checked by your realtor. Without these papers, it will be difficult to sell the property.
Prepare records of Income statements, as well as documents of wildlife and fisheries in the property. These help target the right buyers.
List the livestock, equipment, and structural improvements that will be included with the ranch. You want prospective buyers to have a full picture of what they are getting with the land.

All these preparations will make it easier for you, your realtor, and the buyer to conclude terms of pricing, offer, and final decision on the sale. A ranch or land sale is just like selling a house. You have to stage it, both physically and on paper for you to get the optimal price.

Top Trends in Selling Ranches or Land in Texas

January 25, 2022 by chorton Leave a Comment

Top Trends in Selling Ranches or Land in Texas

This is the golden opportunity for selling ranches or land in Texas. Before the global COVID-19 pandemic, there was already an increased demand for land in the Lone Star State. The pandemic did not dampen this trend; instead, it boosted the search and sale of real estate.

Profile of New Buyers

Two major driving forces of buyers are heading for lands and ranches are: first, the necessity for a change of lifestyle, and second, as an investment due to the uncertainty of other portfolios. The year 2020 proved to be just a sneak peek into the future of real estate in Texas. The spread of the COVID-19 in urban and densely populated cities was a game-changer in terms of lifestyle and investment.

People are now looking at properties in less populated areas, no matter what amenities are available. Investors, in real estate and other portfolios, are pivoting towards open lands than high-rise apartments, stocks, or bonds. In other words, you are looking at a new breed of buyers – first-time homebuyers, millennials, and city folks.

Property buyers are looking for their piece of paradise, whether this means organic farming, ranches to keep wild game animals for hunting, and other leisure and alternative income-earning pursuits. These buyers, for the most part, are very much aware of the environmental impacts of these endeavors. Thus, the preservation of the land is a priority. In other words, they do not want to mess up the beauty of the wide-open space Texas has to offer.

Trending as One of the Best States to Live in

Pre-pandemic, Texas had already been hailed as one of the best states to live in. It has a balance of good schools, job opportunities, and leisure activities that many are looking for in communities. The urban areas and surrounding suburbs have all the right amenities and elements, while in keeping with a lower cost of living compared to other states such as California and New York.

Now, because of this, those who own properties near urban centers or within the vicinities pre-pandemic and the natives, of course, can sell at the most optimal rates to buyers. They can buy outskirt lands, ranches, or in more rural areas. Other land buyers are out of state, even from foreign countries, who want a piece of the American lifestyle at its best. They may be investors who want a secondary or tertiary residence. Investment to nest their eggs while other portfolios are still uncertain.

Land has always been the most stable investment that can turn into easy cash or passive income in the future. Land properties still offer more possibilities and opportunities than other investments. More people are realizing this as the wave of the pandemic has hit the country. Texas, with its hills, meadows, and prairies, is ideal while still enjoying the benefits of better healthcare and lifestyle options.

Social Unrest in Big Cities Resulted to in the Big Move

Uncertainty was not only felt in the financial districts in big cities but also in the streets. 2020 has been a year of unpredictability, where unrest and violence ruled some city streets. Families saw how more dangerous and potentially life-threatening urban living could be. This became the deal-breaking decision for some to move to the country, which would be more peaceful and more conducive to health and wellbeing.

Now The Numbers

Ranch lots were the first to go in the second half of 2020, as buyers bought at about 552,707 acres in rural areas of Texas. That is equal to $1.69 billion. The total value of sales in 2020 is 28.9% higher than the same time in 2019. These are sales and increases in prices across seven regions that include Austin/Waco/Hill Country. Sale and price averages have doubled for the past six years.

Now is the right time if you have land that you want to sell, while everything is still sunny and looking bright and clear like the big Texas sky.

Access and Easement 101 for Texas Land Buyers

January 22, 2022 by chorton Leave a Comment

Access and Easement 101 for Texas Land Buyers

Mr. Mac and Mr. Cheese were neighbors and friends. Mr. Mac bought a piece of land adjacent to Mr. Cheese’s property. However, to get to his newly bought asset, Mr. Mac must pass through Mr. Cheese’s area. Being good neighbors and friends, they agreed verbally that Mac could pass through the property so that he could get to and from his lot. For years, he was able to use the property as a right of way. Unfortunately, Mr. Cheese died and his heirs sold the property that served as a right of way. The new owners did not honor the verbal agreement that existed between the friends. Mr. Mac lost access to his lot, and for whatever use the land was to him, he cannot continue until he is given easement by the new landowners.

Sounds familiar? This is the classic case of easement – the right of way, and the dilemma of verbal agreements in such circumstances.

What is Easement?

An easement is a legal ability to use someone else’s land to use for a specific purpose. Landlocked properties are usually the kind of land that needs easement, to gain access. In the story, Mr. Mac bought a landlocked property and needed permission from Mr. Cheese to access it. Mr. Cheese permitted Mac to enter and exit to his property. In most cases, the agreement/permission would be written and recorded at a county clerk’s office. However, an implied or verbal agreement was sufficient for them as can be seen in this story.

When the easement is documented and registered, it becomes an encumbrance or a claim on the land’s title.

Kinds of Easement Including Right of Way

Easement is the right given by a landowner to another person to use his land for a specific purpose. It is also specific whether it is for the whole use or only a certain portion. Here are the different kinds of easements:

IN GROSS is given to specific individuals or companies for a specified use, intent, or purpose. This kind of easement agreement is not transferable with the property when sold or transferred in other means. A new agreement must be drawn.
Appurtenant is the kind of easement attached to the land. Right of way is an appurtenant easement that is passed with the property when it is transferred or sold. When buying land with an adjacent landlocked property, make sure to check for an easement agreement, especially before undergoing land development such as building facilities or improvements such as permanent fencing.
Utility Easement is most commonly used by utility companies. They are given the right to use a specific part of the land for utility purposes such as electrical poles.
Prescriptive easement is the right to use land without the permission of the landowner. Permission is given to an individual, at a specific period or length and the use of the portion of land meets requirements. Different states have different rulings on prescriptive easement.
By Necessity gives someone the legal right to use a portion of a property as long as the need is considered valid. This is usually used for landlocked residential property with no access to a road except via another property.
Private Easement is an agreement between individuals or companies that allows the person or company to access, build or maintain a structure on a property.

Effects of Easement to Property and Owner

If the easement agreement of Mr. Mac and Mr. Cheese was documented and registered, it would affect the sale of the property and its new owner.

Effect on Property Values

Easement affects the value of a property. When a property with easement is for sale, the land value would include it. When a property owner is offered an easement agreement by a landlocked owner, a real estate appraiser would be called to appraise the value of the property or portion of it. The appraiser adjusts the value based on the rights and easement used that will affect the surrounding property where the portion of easement will be enforced. Residential lots’ value is not affected by easements in most cases, because these usually on edges of the land or for utility management only.

Problems Property Owners Encounter

Be informed that if you have a property with an easement agreement, you cannot make improvements or build within the area where easement is enforced. Any structure that blocks access will be torn down. To ensure you will not encounter problems and develop the surrounding property optimally, know the placements or where the specific areas are.

If you are a buyer, find out in advance if there are existing agreements with adjacent landlocked properties, the kind of easement, locations, and with whom. Registered agreements are usually considered public documents, so research through the local registry office.

You can also ask for the assistance of a real estate agency to help you gather documents. Real estate agents experienced with handling agricultural and industrial lands know where to look and how to gather this information.

The Ins and Outs of Water Rights in Texas

January 20, 2022 by chorton Leave a Comment

The Ins and Outs of Water Rights in Texas

Water is an important resource that continues to shape the development of Texas. The Water Rights law is complex because of the Lone Star State’s historical background and succeeding amendments to adjust to the hydrologic cycle and usage. Water Rights dictates who is given by privilege, quantity, and purpose. It also specifies the time and place where the water may be utilized. Texas law has divided water into legal classes with different rules on ownership and usage for each category. The most recognized of the classes are surface water and underground water. Surface water rights are more complex because it follows the British ruling, and other amendments based on the hydrologic cycle

Surface Water

What is the Riparian Doctrine?

Briefly, the Riparian doctrine is used in resolving water rights and usage conflicts. The fundamental rule is that water rights are connected to the ownership of the property that borders natural water sources such as rivers or streams. Water rights are covered by land proprietorship.

Riparian landowners have the right to use the water within reason and in consideration of the needs of other owners of lands with the same water source. Water rights are retained as long as the property ownership is retained.

Texas water rights use this ruling to resolve conflicts between landowners’ use of natural water within their properties when applicable.

What is Prior Appropriation Doctrine?

Landowners, lawmakers, and the courts from the Western States realized the Riparian Doctrine is not enough to cover rulings on water rights. The doctrine is not appropriate to the dry weather of the Western States, where the rainfall average is below 30 inches per year. Prior Appropriation Doctrine is therefore applied where water rights are not connected to land ownership. Instead, it is based on complying with statutory requirements.

Texas, like the other Western States, was unable to control the use of natural sources of water. Water belonged to no one and was used by everyone. The Doctrine of Prior Appropriation then was adopted to legalize the appropriation of the use of water from rivers and streams.

Combining Two Doctrines

Water Rights Adjudication Act of 1967 combined the Riparian and Prior Appropriation Doctrines. Any person who wished to claim a Riparian must file claims for the right by 1969 with the Texas Water Commission. Furthermore, anybody wishing to use surface water or drainage water must ask and receive permission from the state. The permission is granted by Texas Commission on Environmental Quality.

Why is this drainage water so important that there is a need for a permit to collect and use? Drainage water is another name for diffused surface water or stormwater that naturally incurred after rainfall or snowmelt. Diffused surface water finds its flow from high elevation to low lands. By law, the diffused or drainage water is owned and regulated by the state. Thus, landowners must have a permit to collect this water. There are three general directives applied when drainage water is collected or diverted.

Directive 1 – Common Enemy Rule: Drainage water is considered as a common enemy of all property owners and the law enables all owners to establish measures to protect their properties, without considering the consequence of which to others or neighboring properties. For example, under this rule, Property owner A can take measures like diverting the flow of diffused water to a water duct in his property to protect certain parts from being destroyed or affected by the natural water flow.

Directive 2 – Civil Law Rule or Natural Flow: In this ruling, all property owners are entitled to the perpetuation of the natural flow. If an owner upstream manipulates and increases the flow, causing flooding to lower elevation property, the manipulator is liable to damages.

Directive 3 – Reasonable Flow: Flow of drainage water can be redirected by a property owner even if the extent of the diversion harms the property of another, provided that the action is considered within reasonable circumstances. The reasonable condition is subject to evaluation.

Groundwater

The law on groundwater in Texas is uncomplicated and easy to understand. Groundwater is considered part of the private property of the landowner. Property owners have the right to pump up or collect the water underneath their land. Simple, right? Not so, as all property owners share the reservoir of water underneath the land.

Adjoining properties pump on the same source; pumping up of one property may cause the quantity of water to dwindle or the well of the neighbor to dry out. The existing law on the collection of groundwater is called the “Law of the Biggest Pump”, which means whoever owns the most powerful pump can collect all the water, regardless of whether the neighbor’s reservoir runs dry. Owners are not liable for any inconvenience or even losses their neighbors might incur if their source of water runs dry.

There are only five circumstances where the Texas court will intervene on Groundwater rights:

If there was trespassing on neighboring land to drill water by directly drilling a well on the property or a slanted well on adjoining property that crosses the property line via subterranean level, then the injured neighbor can sue on grounds of trespassing.
If there was malicious or wanton intention to injure another by intentionally drying out the well of a neighbor via over pumping, then the court will intervene.
If it is proven that a property owner or owners are wasting artesian well water by letting the water overflow their land or seep back to the water table, then the court will intervene.
It is unlawful to contaminate or pollute groundwater.
If overpumping from adjoining lands causes the other properties to sink or would have an injurious effect on the land, then the court will intervene.

These are the basic ins and outs of Texas Water Rights.

New Year’s Resolutions That Can Help You Buy a Home

January 13, 2022 by chorton Leave a Comment

New Year, new home! To improve your chances of buying a home, you need to get your financial records in order.

Are you thinking of purchasing a home in the new year? Five New Year’s Resolutions to help you maintain a strong financial record are listed below.

1. Avoid job-hopping

When evaluating mortgage applications, lenders will look closely at income and employment history. While a new job can be a great career move, if your goal is to purchase a home in 2019, it’s important to know that some lenders may not approve of job hopping, especially if the applicant is moving to another industry.

It is ideal to have a steady job history with few, if any, gaps in employment in the last two years. This allows lenders to better predict your future income.

Notify your lender immediately if you find a job that is not related to home-buying. This doesn’t necessarily mean that you will not be eligible for a mortgage. However, be prepared to provide additional documentation.

It may be beneficial to your application if you are moving from an hourly or commissioned job to one that is salaried with the same or higher compensation. Lenders prefer that borrowers have steady, predictable incomes.

2. Subscribe to a limit on monthly services

Although monthly subscriptions are convenient, they can be costly. Even if you make your monthly payments on your credit card, your credit report could be pulled at any point during your credit cycle.

Consider reducing your monthly subscription if you are thinking about buying a house this year.

3. Credit history building

Your credit history is one of the first things that a lender will examine. Lenders favor borrowers who pay off their credit cards and other debts on a timely basis. This signals that they are more likely to approve you for borrowing.

It may be more difficult and time-consuming to secure a home loan if you don’t own credit. A history of paying rent and utilities on-time, along with student loans debt and cell phone bills can show potential lenders that you are capable of managing monthly payments.

4. Verify your credit

Your credit score could have a major impact on your ability buy a house. Low credit scores can have a negative impact on how much money you are able to borrow from lenders and your interest rate.

A few percentage points difference in the interest rate could cost you thousands of dollars over the loan’s life. To avoid any unexpected surprises that might delay your loan application, be sure to monitor your credit, particularly for fraud.

Many financial websites provide credit score monitoring. You can also get a complete credit report once per year if you are unsure about your credit score.

5. Avoid large purchases

Before buying a house, avoid taking on excessive amounts of debt. Even if you are preapproved, this is a good idea.

The ratio of your income to debt, which is how much you earn compared to the amount of debt you have, will impact how much money a lender will lend you. A lower debt load can make home-buying easier.

Like proofreading your resume before applying for a job, a clean financial resume can improve your chances of purchasing a home.

When Your ready for your NEW HOME give Preferred Properties of Texas a call. We are here for All Your Real Estate Needs!

Orignal blog: https://clarkwilsonbuilder.com/5-new-years-resolutions-that-can-help-you-buy-a-home/