For many land-buyers today, a ranch is a little like a toy — something they buy to fulfill a lifelong dream, not something that provides subsistence. While large cattle ranches and farms still exist in the Southwest, land is being fragmented into smaller tracts. Five thousand acres becomes five 1,000-acre ranches. Five hundred acres becomes five 100-acre “ranchettes” and so on, increasing the opportunity for individuals to own land.

This fragmentation may be driven by a subconscious need to own land. It is, I believe, the reason so many people work so hard: to earn enough money to get back to the land.

After you have worked hard to buy your dream property, a place that you can develop the way you want, be wise when you make your purchase. Here are some tips to make land-buying easier and more rewarding.

11 Tips for the First-Time Buyer

1. Define your objective. It is not enough to say you want a place in the country. Ask yourself what you want this land to do for you. Remember, it is a living organism that can be managed to provide a variety of things, from green meadows to trophy deer. Envision what the land could look like in five years. Think about how much time, work and money it will take to make this piece of land produce the way you envision it. This will help you in the search process and may ultimately save you from disappointment.

2. Define your search area. Location is important, especially if you do not plan to live on the new ranch. However, distance from home is a factor sometimes overlooked in the excitement of buying property. It is often better to purchase land closer to home, even though it may be cheaper further away. If you have to drive five hours, dead tired, with a wet dog and cranky kids in tow, the joy will soon go out of a trip to your property. When travel time and distance is excessive, the time you can spend at your place is too short to do the work you want to do and then relax.

3. Learn what type of soil is important to your objectives. Ultimately, you’re buying dirt, so learn which soils are best suited to your needs, be it ranching, farming, wildlife management or simple enjoyment of the outdoors. Soils, climate and past history define a piece of land and limit its potential. Do not expect rocks to grow big deer or fat cattle unless you have a solid credit line at the feedstore. Learn which soils you need and determine if and where they occur in your search area.

4. Study vegetation requirements. Do not assume that every plant you see outside of Dallas or Albuquerque is useful or desirable. A lot of plants produce little in the way of food for wildlife or livestock. Learn key plant species and look for diversity in the vegetation. With enough diversity, chances are good you’ll have some desirable plants in the mix. Remember: Diversity is key.

5. Learn about water and how it affects land use. I will admit — after writing a book on buying rural property, I bought my dream ranchette without checking the water source. Well water on my place is found only at 1,650 feet, and it costs about $65,000 to drill a well at that depth. In the Southwest, water is the key to everything: wildlife, fishing, livestock and even vegetation. Learn about wells, surface impoundments, watersheds and government regulations, and ask questions about water availability and quality. Before you buy, test existing well water for salts and potability.

6. Define your needs for improvements. It’s nice when water wells, barns and a house are already in place, but that’s not always the case, particularly when a large ranch is being subdivided. It has been my experience that you do not pay dollar for dollar for improvements. Do not eliminate a property, however, just because it does not have a nice home on it. Improvements are a tiny fraction of the value of a ranch or farm, and should not be a determinant in the search process. Over time, you can build what you need, just like you want it.

7. Learn something about minerals. You need to be familiar with the basic terminology and mineral activity in the area where you are buying land. While it is not necessary to own the mineral rights to your property, you may regret your lack of mineral ownership later on. Ask for all owned minerals at the start, even if the seller does not think he/she owns any. The title search may turn up some surprises.

8. Learn the market in your search area. The real estate market in the southwestern United States is very active. Prices continue to increase, a trend that shows no sign of slowing down. If you are looking for a “deal,” you could miss out on a good property and ultimately pay more for your property. In addition to properties that your broker finds, do some looking on your own. Read property descriptions on listing brokers’ Web sites, and check the ranch real estate ads in newspapers and magazines. You can subscribe to local newspapers serving the towns in your search area or visit their Web sites. Become familiar with the “going prices” for similar tracts in your search area and question sales below market. Do your homework and be ready to make a competitive offer from the start.

9. Seek representation. In this market, the ability to judge properties quickly is crucial. A licensed broker can help by representing the buyer in the transaction. In most cases, it will not cost the buyer extra. Brokers who specialize in representing buyers network with brokers who list rural properties. A buyer’s rep knows the market and the properties for sale, or knows where to find qualified listings. In turn, smart listing brokers know that the secret to success is moving properties quickly by cooperating with other brokers. They will split their commission in order to save everyone time and trouble. Find a broker who works the area you want to search and query him or her about representing you. Outline your objectives and price range before you even consider looking at land.

10. Do your homework. In the Internet Age, information is just a click away. State natural resources agencies offer soils and vegetation information on their Web sites. Statewide agricultural Extension services are another source of information, as are books on plant life, wildlife, farm and ranch development and management. Become an expert before you buy a place, not after going through the “school of experience” — it’s much cheaper.

11. Establish a relationship with a lender. Seek loan pre-approval and know what you can afford before you start looking for property. That way, you won’t waste time when the right place comes along. You will need to present a financial statement of assets and liabilities in sufficient detail that it can be verified. Remember, the local Farm Credit lender offers a variety of financing options and is one of the most knowledgeable sources of information on farms and ranches in the area.

To save time and money, and to make sure that you find the right land, make your property search a priority. Think the purchase through before you act, learn the requirements of your dream property, engage representation by a professional, and have fun. After all, this may be the biggest toy you’ll ever own.

Jim Mullen is a Castroville, Texas, licensed real estate broker and the author of the book, “Finding, Buying, and Developing a Ranch in Texas,” Hats Off Books, Tucson, Ariz., www.hatsoffbooks.com.

Read the complete article from Landscapes Magazine, Tenth Farm Credit District »