How Much Does Land Cost in Texas Today?
- How Much Does Land Cost in Texas Today?
- Highest and lowest land prices in America
- Services Offered by an Estate Agent in Texas
The land of Texas is as vast and diverse as its people. Those looking to buy property in Texas can invest in anything from rugged desert areas to sea-level plains, which are divided into seven distinct regions. The average price per acre varies dramatically from region to region due to demand, size, terrain, and availability.
Texas has a reputation for being an affordable place to live, owing to the lower cost of housing compared to the coasts. However, the truth is that housing in Texas is becoming increasingly unaffordable, particularly in the large metropolitan areas where virtually all of the population and economic growth is taking place.
Land is one of the most valuable assets to own and this has been the case from as far back in time as can be remembered. The United States of America is one of the countries which has varying land prices across its states. The combined value of land in the U.S.A is estimated to be 23 trillion dollars according to a recent study.
The price or value of land largely depends on a few factors such as whether the land type is a developed urban or suburban area, federally owned land or is an agricultural intensive land area.
The land worth/price is significantly impacted by the type of area it is. Agricultural lands tend to be of lower value than Urban developed areas.
What is the average price of land in Texas?
The cause of the significant price increase is not unique to Texas. The culprits are a limited supply of homes and a shortage of construction workers, both of which plague other large areas across the country.
Fears of a COVID-19 pandemic and urban upheaval may have fueled a stampede of rural Texas land purchases in 2020. According to the Texas Real Estate Research Center, city-dwelling Texans purchased 552,707 acres of rural land in the state in 2020, for a total of $1.69 billion.
- There were 7,684 land sales in Texas, an increase of nearly 29 percent over the previous year.
- The average size of a land sale was 1,139 acres, a 13 percent decrease from 2019.
- The average price per acre increased by 3% to $3,064.
What Does Rural Land Cost Near Houston or Dallas-Fort Worth?
Sizable tracts of land for sale in Texas near major metro areas are becoming increasingly difficult to find, particularly in the Texas triangle, which includes San Antonio, Houston, and Dallas-Fort Worth. We examined land sales of 500+ acres that were recorded by the North Texas Real Estate Information System (NTREIS) and the Houston Association of Realtors (HAR) multiple listing services. Please remember that certain sales and selling prices were not made public, but we should have enough data to give you a general understanding of Texas land values.
The majority of the sales of 500+ acres in Houston took place north of Houston, around Huntsville. Walker county made up the majority of the closed sales. Because this area is heavily forested, the timber industry frequently provides additional income. As a result of the increased income potential, land for sale in the Houston area has averaged $4,293 per acre year to date in 2019, with a median of $3,142 per acre – meaning half of the tracts bought for more than $3,142 per acre, and half sold for less.
The majority of buyers of 500+ acres in Dallas-Fort Worth area appeared west and northwest of Fort Worth. Because this land did not have the opportunities for better income from the timber industry, the price per acre fell. A further reason could be that once you get west of Fort Worth, there are no major metro areas nearby. Land sales in the Dallas-Fort Worth metroplex averaged $2,469 for each acre, with a median price of $2,411 per acre. However, DFW had twenty-one purchases of 500+ acres, compared to 14 in the Houston area.
Farm land values in Texas
The average farm real estate value in the United States is a measurement that includes the value of all farm land and buildings. It has reached a new high of $3,380 per acre, a 7% increase over last year. This is the largest percentage change since 2018, when values increased by 8% over the previous year. And the monetary value of the change, at $220/acre, has not been seen since 2012.
The average cropland value in the United States and Texas are both higher. The average cropland value in the United States is $4,420/acre, a 7.8 percent increase. In Texas, the average cropland value is $2,150/acre, a 5.9 percent increase.
Highest and lowest land prices in America
An overview of the prices would be a comparison of the highest and lowest priced lands in the U.S.A.
Highest price (New Jersey)
According to the study, New Jersey was the most valuable state in terms of land. Prices where in the ranges of 196, 410 dollars per acre. Developed land is always more expensive and almost 31 percent of New Jersey was classed as developed.
Lowest Price (Wyoming)
One of the largest states, the land prices in Wyoming were 1,588 dollars per acre. The price is reflective of most large state’s in the country. In addition, more than half of Wyoming is owned by the Government and is federally owned.
Services Offered by an Estate Agent in Texas
Estate agents are persons who arrange for the sale, purchase, and management or renting of buildings and properties. Estate agents are typically involved in the marketing of properties, which are available for sale. The legal documentation falls within the purview of a third party referred to as a solicitor, or a licensed conveyor.
More than just a go-between
Once a real estate agent is appointed to sell a certain piece of property, or even some cases they look after a property making sure the carpets are cleaned, windows are in good condition and general building look is on point, they immediately embark on a marketing campaign, driven towards attracting potential buyers to the property in question. These agents then assume the responsibility of taking prospective buyers for viewing of the property, and also provide additional information on the property.
The term estate agent also refers to a person who is responsible for the management of a particular group of privately owned property, or letting agent services for tenanted properties owned by a singular owner. Estate agents have a series of obligations. One of these is informing a client when an offer has been made for the purchase of their property. Additionally, the estate agents is obliged to explain the meanings, and the implications of the terms stipulated in the purchasing contract.
The real estate agent acts as a go-between between the buyers and the owner, and assist in the negotiation process to reach an amicable price of the property. The real estate agent also proceeds to act on behalf of the property owner, until the said property is legally transferred to the new owner of the property. For all these services, the estate agent is remunerated with a payment, often referred to as a commission, from the owner/seller.