Why Buying Land in Texas is Different

Buying land in Texas is like driving a big diesel truck down a wide open ranch road; you’ve got freedom, power, and opportunity, but you still need to know how to handle the terrain before it gets rocky and bumpy. Most states lean heavily on zoning to define what you can and can’t do with land. Texas flips that model. Here, land ownership is less about permission and more about understanding:

• No statewide zoning
• Strong private property rights
• Groundwater ownership under the Rule of Capture
• Mineral rights commonly separated from surface ownership
• Agricultural exemptions controlled at the county level
• Regional land economics that vary more than most buyers expect
• Rapid population growth and migration pressure reshaping rural counties

Texas gives you flexibility, but it also asks you to do your homework and it’s easy when you work with an Agent and/or Broker who already knows how to navigate the process. Freedom doesn’t mean the absence of rules, it means the absence of assumptions.

Michael Schultz and his team help land buyers and sellers across major Texas regions including:

• Central Texas
• Hill Country (San Antonio, Boerne, New Braunfels, Fredericksburg, Kerrville and surrounding towns & counties)
• South Texas
• West Texas
• East Texas
• The Panhandle

This isn’t theory. This is land buying where dirt, water, access, taxes, and rights all intersect.

Texas Land Market Overview

Texas is one of the largest land markets in the world — and one of the fastest moving in the U.S. and demand over here is fueled by several things:

• Expanding metros pushing outward into rural counties
• A rise in recreational land purchases (hunting, weekend tracts, live-water)
• Investors treating land as a hedge against inflation
• Homesteaders seeking self-sufficient living
• Ranchers expanding herds and grazing footprints
• Development pressure converting large ranches into smaller tracts
• Record migration trends
• Increased competition for land with water + build feasibility

Unlike residential real estate, land buying isn’t priced by bedrooms or finishes unless there are improvements on it. It’s heavily valued by:

Water availability: In Texas, water availability isn’t just a convenience — it’s a value multiplier. Buyers should evaluate well production, aquifer depth, and Groundwater Conservation District rules early, as usable water drives both price-per-acre and long-term property potential.

Soil quality: Soil quality dictates what the land can produce, from hay to grazing to crops, and Texas soils vary dramatically by region, with sandy loam prized for versatility and caliche or heavy clay requiring more planning and cost. Testing the dirt isn’t optional here — it’s foundational to smart buying.

Access: Legal, insurable access is one of the most important factors in buying Texas land, whether through public road frontage or a recorded easement — handshake access doesn’t hold up for lenders or future resale. Always verify that access is documented and defendable.

Topography: Texas topography ranges from flat farmland to rugged Hill Country terrain, and the slope, elevation, and drainage directly impact build sites, road cost, and land usability. The view may sell the dream, but the terrain determines the plan.

Restrictions: While Texas has no statewide zoning, deed restrictions, HOAs, city ETJs, and county rules can still limit building, livestock, subdivision, and utility access. Freedom exists here, but it always comes with a title review.

Mineral ownership: Mineral ownership is often severed from the surface estate in Texas, meaning subsurface owners may retain rights to drill or extract — even on unzoned rural land. Buyers must confirm whether minerals convey, as this impacts both risk and valuation.

Improvements: Improvements like fencing, barns, tanks, roads, and water infrastructure can represent a massive portion of a property’s value in Texas, often exceeding the land itself in usability metrics. A ranch with strategic improvements trades very differently than raw dirt.

Use potential: Land use potential in Texas is defined by what the buyer can do next — graze cattle, drill a well, build a home or barn, hunt, lease, or subdivide, depending on local rules, access, and utilities. Buying here means buying for your plan, not the state’s.

Proximity to growth: Proximity to growth paths near metros like San Antonio, Austin, Houston, and DFW dramatically influences Texas land demand, pricing, and exit strategies, especially as development pushes outward. The closer you are to progress, the more strategic the buy must be.

Legacy appeal: Texas land is often purchased as a generational asset — for family, ranching, hunting, and heritage value, not just short-term gain. Legacy appeal isn’t emotional fluff here — it’s a long-term ownership thesis.

Investment upside: Investors treat Texas land as a hedge against inflation, migration pressure, and limited inventory near metros, with appreciation often driven by water, access, improvements, and regional demand. In Texas, upside belongs to those who research, plan, and buy early in the path of progress.

How Much Does Land Cost in Texas?

The most Googled land question: “How much does land cost in Texas?”

Answer: Which part of Texas? Because Texas isn’t a single land market — it’s at least five:

Texas Hill Country

• Higher elevation, limestone terrain, luxury town influence
• Proximity to San Antonio and Austin
• Live-water features trade like gold bars, not dirt
• Views, build feasibility, deed restrictions impact pricing
• Smaller tracts often cost more per acre than larger ranches elsewhere

East Texas

• Higher rainfall = more predictable agriculture
• Timber value can impact pricing
• Sandy loam soils dominate, but clay-heavy areas exist
• Floodplain and drainage influence build sites
• Land clearing economics differ due to dense vegetation

West Texas

• Vast acreage + lower population density
• Water dependency means well production dictates value
• Power lines and rural water may not be nearby
• Solar + generators are more common solutions
• Tracts trade based on scale and isolation economics

Panhandle

• Farmland economics dominate
• Soil type, irrigation, crop ROI influence pricing
• Wind energy leases and pressure exist
• Flat land favors efficient ag operations
• Groundwater districts may regulate commercial use

South Texas

• One of the top hunting land markets in the U.S.
• Brush density = habitat value
• Water districts influence well size and commercial export
• Larger tracts are more common
• Pricing blends habitat + water + improvements + access + demand

Big drivers of land price differences:

• Water
• Access
• Dirt quality
• Competition pressure
• Restrictions
• Use potential
• Distance to metros
• Improvements
• Rights ownership

Types of Land Buyers in Texas

Texas land buyers don’t buy just acres; they buy dreams and/or outcomes. Most Texas land buyers will fall into one (or more) of these groups:

Farm & Ranch Buyers

These buyers prioritize grazing land, barns, fencing, stock tanks, and long-term usability. They buy based on ag output and legacy value, evaluating properties through a production lens.

Common questions:

• “How many cows can this support?”
• “Is the ag exemption transferable?”
• “What’s the soil like for hay?”
• “What’s the well production?”

Hunting & Recreational Buyers

These buyers prioritize wildlife corridors, brush density, water sources, and privacy. More often than not, they’re cash buyers or come in cash-heavy with a smaller note, though they’re often unfamiliar with mineral severance or water export limits.

Common questions:

• “Do the minerals convey and are there any current leases?”
• “Can I drill a well anywhere and what are the nearby wells like?”
• “Should we keep the Ag Exemption or transfer it into a Wildlife Exemption?”

Homesteaders

These buyers want to build homes, barns, shops, gardens, and keep livestock while installing wells and septic systems. They seek flexibility and low taxes.

Common questions:

• “Can I build what I want?”
• “Do I own the water under me?”
• “How do I qualify for ag exemption?”
• “Can I set up for rainwater collection or have some cows & goats?”

Investors

These buyers focus on long-term appreciation and want low taxes, minimal restrictions, and subdivide potential. They carefully evaluate path-of-progress counties.

Common questions:

• “Can I subdivide this later?”
• “What are rollback taxes?”
• “Do I own the minerals?”

Developers

These buyers evaluate properties based on feasibility, utilities, and expansion paths. ETJ influence matters most here, as they’re less focused on freedom and more focused on execution.

Common questions:

• “Is this in a city ETJ?”
• “How far are utilities?”
• “Can we re-plat this?”

Out-of-State Buyers

These buyers are drawn by Texas freedom but surprised by Texas complexity. They often assume rights convey that don’t.

Common questions:

• “I thought no zoning meant no restrictions, right?”
• “If the mineral rights don’t convey, can I stop an oil or gas company from accessing the land later?”
• “Will the ag exemption automatically transfer at closing, or do I have to reapply in that county?”

Step-By-Step: How to Buy Land in Texas

This is where the real education happens.

Zoning, Deed Restrictions & Local Controls

The most repeated line online about Texas land is also the most dangerous: “Texas has no zoning.”

Here’s what that actually means. Texas has no statewide zoning law, and most counties don’t zone unless they choose to. But cities absolutely do zone within their limits, and extraterritorial jurisdictions (ETJs) can impact your building and subdivision plans even outside city boundaries. Deed restrictions are privately enforceable anywhere, and HOAs or POAs can exist well beyond city limits. The reality is simple: no zoning doesn’t mean no rules.

Before you close on any Texas land, make sure you verify:

• City zoning if buying within city limits
• County rules and regulations
• Deed restrictions recorded in the title
• Whether an HOA or POA governs the property

Texas Groundwater Rights (Rule of Capture)

Texas groundwater law is straightforward in principle but nuanced in application:

• The government does not own your groundwater
• The landowner does
• You can drill a well for:
  • Domestic use
  • Agricultural use
  • Livestock
  • Homestead needs

But there are some other things one MUST know also. Like the fact that commercial export or resale of water is not always unrestricted. Also that the Groundwater Conservation Districts (GCDs) may regulate the following; commercial pumping, well spacing, pump size and permits for export. The majority of Domestic and Livestock/Irrigation wells are allowed with very minimal oversight.

Surface Estate vs Mineral Rights

In modern day Texas, you’re buying what’s on top, unless stated otherwise. Mineral rights are commonly severed from surface rights, meaning someone else may own what’s beneath your land. Surface owners can’t always stop drilling activity, and accommodation rights—the requirement for mineral owners to reasonably accommodate surface use—are situational, not automatic.

Before you close, always ask:

• Do the mineral rights convey with the property?
• Are there any existing mineral leases?
• What about wind rights?

Agricultural Exemptions (Ag Exemptions)

Texas doesn’t tax land based on what it is — but what it does.

Ag exemptions are granted at the county level and can reduce your property taxes by 80–95% in production counties. The exemption is based on agricultural use, not ownership, which means you must actively use the land for qualified purposes to maintain the benefit.

Approved uses include:

• Cattle
• Hay production
• Timber
• Crops
• Beekeeping
• Wildlife management (if properly structured)

Rollback taxes may apply if land use changes later, regardless of whether the exemption was for agricultural production or wildlife management.

Utilities, Access & Infrastructure

Your land is only as usable as its weakest link.

Power

Determine whether power lines exist nearby and whether the service is single-phase or three-phase. In remote locations, you may need to plan for solar power as your primary or supplemental energy source, backup generators, or battery storage systems for reliable off-grid operation.

Water

You’ll need to decide whether to drill a new well or rely on an existing one. Research nearby well production rates and water table depth to understand what’s realistic for your property. In some areas, connecting to rural water systems may be required or preferred. Understanding aquifer sufficiency early in your search will save significant time and money.

Access

Public road frontage is the gold standard for land access, offering the most straightforward path to financing and resale. If the property is accessed by private road, verify that a recorded easement exists and confirm that it’s legal, insurable, and properly documented. Old handshake agreements won’t satisfy lenders or hold up in court, so always verify access rights in writing before closing.

Surveys & Tests

Expect to pay for or negotiate with the seller for the following:

• Boundary survey
• Soil test
• Septic feasibility
• Well drilling estimates

Additional tests and inspections may be necessary depending on your region and intended use, which can be negotiated between buyer and seller during the transaction.

Offers, Negotiations & Financing

Texas land negotiations depend on several interconnected factors. Cash buyers typically have more negotiating leverage than financed buyers, especially when appraisals aren’t required. Water features significantly impact value and negotiation strategy—whether the property has well water, city water access, or live water sources like creeks, streams, or rivers. Lakes, ponds, and livestock tanks also add measurable value.

Mineral rights conveyance often becomes a central negotiating point, as does the presence and enforceability of deed restrictions. The condition and type of improvements—fencing, barns, roads, water infrastructure—can shift negotiations dramatically, as these assets often represent substantial value beyond raw land. Competition pressure from similar properties on the market affects both price and terms, while the seller’s and buyer’s respective timelines for closing can create urgency or flexibility in the deal structure.

Biggest Mistakes Buyers Make (Texas Edition)

• Thinking that no zoning equals no restrictions
• Not verifying deed restrictions before closing to see if they will work for the buyer’s needs
• Not asking if minerals convey and do they benefit from any surface rights
• Assuming all groundwater can be exported before doing your homework with your Agent or Broker
• Not reviewing GCD maps
• Skipping surveys or not getting a new/newer survey
• Ignoring septic feasibility
• Forgetting rollback tax risk

Frequently Asked Questions Texas Land Buyers Need To Be Asking

Do I own the water under my land? Yes — for use. Not always for sale or export.

Do mineral rights automatically convey? No — they are commonly severed.

Can I subdivide my land? Depends on ETJ, restrictions, and county platting rules.

Do ag exemptions transfer? Most of the time they will but you must meet minimum county standards.

Region-By-Region Mini Guides

Hill Country 

The Hill Country blends luxury and ranch appeal, where water, views, and proximity to metros drive premium pricing and smaller tracts trade at higher price-per-acre than most of the state.

East Texas 

East Texas offers more reliable rainfall and strong timber and grazing potential, but drainage, floodplain checks, and legal access verification still shape usability and long-term value.

West Texas 

West Texas delivers scale and fewer restrictions, often at lower cost per acre, but water and power planning are critical, as wells, solar, and infrastructure distances define feasibility.

Panhandle 

The Panhandle trades by farmland production economics, where soil and irrigation dictate value more than lifestyle premiums, and commercial well rules may fall under groundwater district oversight.

South Texas 

South Texas land is defined by habitat value and hunting demand, but buyers must always verify groundwater district rules and mineral conveyance before assuming full ownership rights.

Final Checklist for Buying Land in Texas

• Find a Land Agent & Broker who you connect with and trust
• Get pre-approved or supply the Agent or Broker with a proof of funds and budget for your desired land purchase and use
• Make sure your vision, wants & needs list align with your budget
• Ask if mineral rights convey
• Review groundwater district maps
• Verify access type or recorded easement
• Order a survey
• Confirm county Ag minimum standards
• Confirm septic feasibility
• Check power options
• Evaluate rollback tax risk
• Compare price-per-acre regionally
• Run full title + access + rights review

Your Land Deal Deserves a Specialist

Buying land in Texas means navigating mineral rights, groundwater rules, deed restrictions, ag exemptions, and legal access—challenges that generic online advice can’t solve. The smartest buyers work with a specialist who knows the terrain.

Michael Schultz helps Central Texas, South Texas, and Hill Country buyers verify mineral rights and groundwater rules, navigate deed restrictions and county regulations, plan for ag exemption transfers and rollback taxes, coordinate legal access and surveys, and develop negotiation strategies tailored to your timeline and financing approach. Supported by KW Land’s® national network and local expertise, Michael closes rural deals with precision.

Ready to move forward? Contact Michael Schultz to discuss your Texas land goals with a broker who speaks the language of rural real estate.