Buying rural homes and land
Buying rural homes and land, step by step
How James Peterson ALC and Barbara Peterson help buyers find and close on rural homes and land in South Texas, from intended use to the title company.
The short version
Most buyers start by looking at listings. We start somewhere else: what you plan to do with the property. A place that works for horses doesn't always work for building. A tract that's perfect for hunting may be a poor homesite. What you plan to do there decides what you should even be looking at.
We're James Peterson ALC and Barbara Peterson, brokers and owners of the United Country Real Estate franchise in Floresville, working as Texas Ranch & Home. Barbara leads home buyers, including homes in subdivisions and small communities, and VA and Texas Veterans Land Board buyers. James leads land, farm, ranch and acreage buyers under the UC Ranch Properties name.
Here's how buying with us works, in four steps:
- Get ready to buy. Paperwork and financing sorted before we tour.
- Start with intended use. What you plan to do there shapes the whole search.
- See what photos can't show. Access, water, fencing, restrictions and the real cost of owning it.
- Contract to closing. The option period, earnest money, inspections, survey and the title company.
Tell us what you're looking for
Get ready to buy: the paperwork and the financing
Before we show you property, you'll sign three things with us. Two of them are information forms that Texas has every broker give you. The third is our agreement to work for you.
- Information About Brokerage Services. A short state form that explains the different ways a broker can represent a buyer or a seller, and who they owe duties to.
- Consumer Protection Notice. A state notice telling you who licenses real estate brokers in Texas and how to reach them.
- A buyer representation agreement. We require one before we show property. It spells out that we represent you, what we'll do, and how we're paid. We go through it with you line by line before you sign, and we're glad to answer any question about it.
Financing comes next. Talk to a lender early, before you fall for a property. Land loans and home loans don't work the same way, and a lender who does one well may not do the other. If you're a veteran, bring that up on the first call. Barbara is a U.S. Army veteran with over 14 years of service, and she knows VA loans and the Texas Veterans Land Board program from working them. She can help you ask the lender the right questions. More on buying with VA or Land Board financing.
Getting this done first isn't paperwork for its own sake. When the right property comes up, the buyer who's ready to write an offer that day is usually the one who gets it.
Buying rural homes and land, step by step
Start with intended use: what you plan to do there
This is the question we ask before anything else, and it's the one most buyers haven't fully answered yet. Are you building a home, or buying one? Running cattle, keeping horses, hunting, or holding the land as an investment? Living on it now, or later?
The answer changes what matters:
- Building means you need to know whether you can build at all, where water will come from, whether a septic system will work on that soil, and whether there's legal access to the road.
- Horses and cattle mean fencing, water for animals, pasture and how much of the acreage is usable.
- Hunting and recreation mean access, cover, water and whether the neighbors' uses fit yours. More on hunting and recreational land.
- An existing rural home means the house itself, plus the well, the septic system and whatever sits on the rest of the property.
Once we know the use, we can tell you plainly whether your budget and your plans fit this market, and where they fit best. That conversation saves buyers months of looking at the wrong properties.
First-time land buyers get the most out of this step, because nobody tells you what to watch for until you've already bought. Edith Gomez bought 10 acres in Atascosa County with us in June 2024: "As first time land owners, we didn't know what we needed to watch out for (such as soil type, restrictions, etc.), so being able to ask him questions and getting his input was invaluable." More for first-time land buyers.
See what photos can't show: access, water, fencing and restrictions
Listing photos show a property at its best angle. They don't show whether there's legal access to the road, whether the well works, where the fence actually sits, or what the deed restrictions say. On rural property those are the things that decide whether you should buy it.
So we go look with you, and we look at what matters:
- Access. Legal access to a public road isn't the same as a gate people have used for years. Why access matters so much on rural land.
- Water and septic. Well, co-op water or city water, and what the septic system will need. Well water and septic, explained.
- Fencing and boundaries. Where the fence is, and where the line is. They aren't always the same.
- Restrictions. Deed restrictions and subdivision rules can limit what you can build, what animals you can keep and how you can divide the land later.
- Terrain and usable acreage. Twenty acres with a creek bottom that floods isn't twenty usable acres.
- What it costs to own. Taxes, and whether the property carries an agricultural valuation you'd need to keep up. How the ag exemption works.
We'll tell you what we see, including what's wrong with a property. A surprise on rural property is common and expensive, and finding it before you sign is the whole point of looking this closely.
Contract to closing: the option period, earnest money and the title company
When you've found the property, we write the offer with you. Here's how the money and the timing usually work on our buyers' contracts. Every contract is negotiated, so treat these as typical, not fixed.
- The option period. This is your window to inspect the property and decide. For our buyers it's typically about 10 days, and the option fee is typically about $10 a day. During the option period you can end the contract for any reason, as the contract allows.
- Earnest money. Typically about 1% of the price. It shows the seller you're serious.
- Where the money goes. The title company holds both the option fee and the earnest money. You can send both in one check or one wire.
The option period is when the inspections happen, and on rural property that means more than the house. The well, the septic system, the outbuildings and the fences all get a look. A survey shows where the lines actually are, which matters more on acreage than on a lot in town. When you need a survey. If something comes up, we'll lay out your options and what we recommend, and we negotiate it with you.
Closings go through a title company. We work with several, and we'll help you coordinate with the one on your contract. The title company handles the title work, collects the funds and records the deed. What to expect in closing costs.
VA and Texas Veterans Land Board purchases carry their own program requirements, and those are the deals most likely to stall. Shannon Sims bought through the Land Board with us in July 2023: "Despite significant issues with TVLB Barbara and James went above and beyond to make this a reality for us."
This page describes how we generally work with buyers. It isn't legal, tax or lending advice. Your contract, your lender and your title company govern your purchase. When you're ready to start, send us a message, or call Barbara Peterson at (210) 540-6487 about homes or James Peterson ALC at (210) 740-1295 about land.
Frequently Asked Questions
Do I have to sign a buyer representation agreement before you show me property?
Yes. We require a buyer representation agreement before we show property. It says that we represent you, what we'll do for you, and how we're paid. You'll also get two Texas information forms: Information About Brokerage Services and the Consumer Protection Notice. We go through all of it with you before you sign.
How long is the option period, and what does it cost?
For our buyers the option period is typically about 10 days, with an option fee of typically about $10 a day. Both are negotiated in each contract, so yours may differ. The option period is your window to inspect the property and decide whether to go forward.
How much earnest money will I need, and who holds it?
Earnest money is typically about 1% of the price, though it's negotiated in each contract. The title company holds it, along with the option fee. You can send both to the title company in one check or one wire.
Who handles the closing?
A title company. We work with several and help you coordinate with the one named in your contract. The title company handles the title work, collects the funds and records the deed.
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