CHECKLIST FOR BUYING IN A RURAL SUBDIVISION

There are a lot of different property types in rural Texas. That is a good thing because variety is one of the reasons for choosing the country life style over living in the city or suburbs. One of the most popular is the rural subdivision. The rural subdivision is great choice for country living but they are different in many respects from other rural property types and to other rural subdivisions for that matter.

What is the difference between raw land (acreage) and a rural subdivision?

A rural subdivision has been developed while raw land has not. When we use the term developed we mean improvements (land preparations) have been made resulting in sites ready for building.

What is the role of the developer?

A developer of rural subdivisions specializes in dividing raw acreage into homesites together with addresses, extended utilities, access to each homesite, surveys and plats, deed restrictions, compliance with governmental codes and regulations, etc.

Types of rural subdivisions.

Rural subdivisions vary significantly in terms of amenities, lot size and degree of development. These factors overlap. Amenities include trees, water features and seclusion. Lot size can vary from 2 acres to 20 acres with the larger ones proving opportunities for ponds and livestock. Some subdivisions are not much more than a larger tract cut into smaller parcels while others are highly developed with deed restrictions and home owner associations.

Building on raw land.

On the positive side raw land affords a great deal of freedom, privacy and control with respect to what you can do with your property. There are few restrictions on what you build, what you do with the property, and who you neighbors are.

There are negatives with building on raw land as well. No developer is involved so you will have to deal with all utilities, site work, government compliance, surveys, access permits, etc. Additionally, you have no control over what your neighbor builds or otherwise does with their property.

Very generally speaking, raw acreage will located further from a town or city. Price per acre will probably be less for raw land than a site situated in a rural subdivision.

Building in a rural subdivision.

When you build in a subdivision many of the logistical decisions have already been made and implemented. A lot of land preparation has been finished. On the other hand, you may have to deal with a home owners association and deed restrictions which will affect the use of your land.

What to ask the land developer.

Be sure to ask for information about Home Owner Associations, deed restrictions, subdivision plats, Certificate of completion from the county, property survey and floodplain maps.

Some factors to consider when buying in a rural subdivision.

Roads. You may have a preference for asphalt vs an all weather road. A secondary county road is probably better than a major farm to market or state highway.

Utilities. Check on whether there is a community water system or will you need to drill a water well. Get bids on a septic system. Investigate internet and electrical service.

Deed Restrictions. Is there a homeowners association with associated fees. Research setback lines and other building restrictions.

Deeded access. Make sure you have deeded access vis frontage or access easement.

Topography and drainage. Consider possibility of flooding.

School District. Each Independent school district varies. This will affect the neighborhood.

Infrastructure rights of way (easements). Be sure you are aware of any pipelines or power line easements. A survey is the best tool for this.

Financing Considerations

A variety of financing options are available for rural residential land. There is the possibility of both farm credit institutions and owner financing for both raw land and rural subdivision lots. Bank financing is not always available. Ask your land broker about sources of financing.

SUMMARY
Rural subdivisions are one of the most popular land types within 100 miles of Houston. A significant portion of theses sales are for retirement. These tracts offer ready to build on home sites and often with owner financing.

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We would love to hear your comments regarding the pros and cons of your rural subdivision experience.

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Allen Realty Advisors represents buyers and sellers of fine quality rural land near Houston. We specialize in weekend retreats, country estates, farms and ranches, recreational property and investment land. Our market area is generally within 100 miles (two hours) of Houston.