Sell Your Ranchette Note in Texas: A Seller's Guide

The ranchette — typically a property of 5 to 50 acres on the edge of a growing Texas community — has become one of the most popular property types in the state, appealing to buyers who want the space and freedom of country living without the full commitment of a working ranch. If you hold a promissory note secured by a ranchette in Texas, you own a financial asset backed by a property type that sits at the sweet spot between suburban convenience and rural lifestyle, and the growing demand for this type of living means your note is likely to be well-received by experienced buyers. The decision to sell your ranchette note in Texas can put immediate cash in your hands while capitalizing on the strong market for semi-rural properties across the state.

Ranchettes have exploded in popularity across Texas as more families, remote workers, and retirees seek the space and tranquility of country living within commuting distance of a city. The COVID-19 pandemic accelerated this trend dramatically, as the shift to remote and hybrid work made it possible for many professionals to live further from their offices. Communities on the outskirts of Austin, San Antonio, Houston, Dallas-Fort Worth, and dozens of smaller Texas cities have seen a surge of ranchette development, with subdivisions offering 5-acre, 10-acre, and 20-acre tracts that provide enough space for horses, a garden, a workshop, and the breathing room that suburban lots simply cannot offer. This sustained demand has driven ranchette values upward and created a deep market that note buyers find attractive.

Whether your note is backed by a 10-acre ranchette outside a growing Hill Country town, a 20-acre tract on the edge of a DFW suburb, a 5-acre horse property near Houston, or any other ranchette-style property in Texas, this guide covers everything you need to know about selling your ranchette note and getting the best possible return.

What Makes Ranchettes Special in the Texas Note Market

Ranchettes occupy a unique position in the Texas land market — larger than a suburban lot but smaller than a working ranch, more rural in character but still connected to urban employment and amenities. This "best of both worlds" positioning creates a set of characteristics that note buyers evaluate differently from either pure residential lots or large rural acreage.

Broad Buyer Appeal

One of the greatest strengths of ranchettes as note collateral is their broad appeal to a diverse range of buyers. Young families seeking more space for children to play, horse enthusiasts looking for enough acreage to keep a few horses, retirees wanting a quiet country retreat, remote workers who no longer need to live near an office, and hobby farmers who want to raise a few animals or grow a large garden all find ranchettes attractive. This diverse buyer pool means that in a foreclosure scenario, the note buyer would have a relatively deep market of potential purchasers for the property, which reduces risk and supports better pricing. The breadth of ranchette demand is a significant positive that distinguishes this property type from more specialized categories like hunting land or timberland, which appeal to narrower buyer groups.

The Lifestyle Premium

Ranchettes carry a lifestyle premium that reflects the intangible value of space, privacy, and rural character. This premium is not purely economic — it is driven by the emotional desire for a different kind of life, one that includes open skies, quiet mornings, and the freedom to use your land as you see fit. This lifestyle motivation makes ranchette buyers particularly committed to their properties and, by extension, to keeping their notes current. People who buy ranchettes are fulfilling a dream, and they are often willing to make financial sacrifices in other areas to maintain their ownership of the property. For note buyers, this emotional commitment translates into lower default rates and more reliable payment performance, which supports better note pricing.

Proximity to Urban Employment

Unlike remote rural acreage that may be hours from the nearest city, ranchettes are typically located within commuting distance of an urban employment center. This proximity is a key value driver because it ensures that the property appeals not just to retirees and independently wealthy buyers but also to working professionals who need to access a city for employment, shopping, healthcare, and other services. The commuting connection ties the ranchette's value to the urban economy, providing a demand support structure that is more robust than what purely rural properties enjoy. Note buyers recognize this urban-adjacent positioning as a positive factor that enhances the collateral's marketability and value stability.

Agricultural Tax Benefits

Many ranchettes in Texas qualify for agricultural tax valuations, which dramatically reduce property tax obligations and make the property more affordable to own. Whether through livestock (even a few cattle, goats, or horses can qualify), wildlife management, beekeeping, or hay production, ranchette owners can often obtain an agricultural exemption that saves hundreds or thousands of dollars per year in property taxes. This tax benefit makes ranchettes more attractive to buyers and more affordable for borrowers to maintain, both of which are positive factors in the note buyer's assessment. If your ranchette has an agricultural valuation, include documentation of this benefit when presenting the note for sale.

How to Sell Your Ranchette Note in Texas

Selling a ranchette note follows the standard Texas note-selling process, with attention to the property's unique characteristics that set it apart from both residential lots and large rural acreage.

Compile Your Documentation

Assemble the standard note documents — promissory note, deed of trust, payment history, title insurance, and amendments — along with materials that showcase the ranchette's value. A property survey or plat showing boundaries, acreage, and terrain features is essential. Include documentation of any improvements: fencing, barns, workshops, wells, septic systems, stock tanks, corrals, and the home or cabin if one exists on the property. Photos are particularly impactful for ranchette notes because they allow the buyer to visualize the property's character and condition. Documentation of agricultural tax valuation, water resources (well production, stock tanks, creek frontage), and road access rounds out the package. For the standard document checklist, see this guide on documents needed to sell a land note in Texas.

Choose a Buyer Who Understands the Ranchette Market

The ranchette market operates at the intersection of suburban and rural real estate, and the buyer needs to understand both worlds. A buyer who primarily evaluates suburban residential notes may not appreciate the lifestyle premium and agricultural benefits that ranchettes offer. A buyer focused on large working ranches may not understand the commuter-oriented demand dynamics that drive ranchette values near growing cities. Longhorn Note Buyers has been purchasing land notes of every type across Texas since 2007, and we understand the ranchette market's unique position between suburban and rural — including the lifestyle premium, the agricultural tax benefits, and the commuter-driven demand that make ranchettes such attractive collateral.

Due Diligence

Due diligence for ranchette notes includes the standard title search and payment verification, along with a property valuation that accounts for the ranchette's specific attributes. The buyer will use comparable sales of similar ranchette-type properties in the same area, which can sometimes be less abundant than comparables for suburban lots but more plentiful than for large ranches. The buyer will also consider the property's improvements, water resources, agricultural tax status, and proximity to the nearest city. The due diligence phase typically takes one to two weeks for ranchettes in active markets near growing cities, potentially slightly longer for properties in more remote areas.

Closing and Getting Paid

After due diligence, closing proceeds in the standard manner — assignment documents are prepared, signed, and recorded, and the buyer wires the purchase price. The total timeline from initial contact to funding is typically two to four weeks for a ranchette note, which falls in the middle of the range for land notes generally.

What Note Buyers Look For in Ranchette Collateral

Note buyers evaluating ranchette notes apply the standard financial analysis along with an assessment of the property's lifestyle and practical attributes.

Standard Note Factors

Interest rate, payment history, remaining balance, remaining term, and loan-to-value ratio are the core drivers of note value, and they apply to ranchette notes just as they do to any other type. A strong payment history with 24 or more months of seasoning is the most impactful factor. Higher interest rates and standard amortizing structures contribute to better offers. For a comprehensive overview, see this article on what determines note value in Texas.

Proximity to a Growing City

The distance from the ranchette to the nearest city or employment center is one of the most important property-related factors in the valuation. Ranchettes within 30 to 45 minutes of a growing Texas city benefit from the urban employment connection and the broad demand from commuters, which supports strong property values and provides liquidity in a foreclosure scenario. Properties that are further from a city may still be attractive to retirees and lifestyle buyers, but the narrower demand base may lead to a slightly larger discount. If your ranchette is within commuting distance of a growing metro, highlight this connectivity when presenting the note.

Water, Fencing, and Improvements

The practical improvements on a ranchette are important value drivers. A reliable well, perimeter fencing, cross-fencing for livestock management, a barn or equipment shelter, corrals and pens, and a residential structure all add to the property's value and demonstrate that it has been actively used and maintained. Water availability is particularly important — a ranchette with a productive well and stock tanks is worth meaningfully more than one without reliable water. Note buyers assess these improvements as part of the collateral valuation, and properties with functional, well-maintained improvements receive better assessments.

Acreage and Usability

The size of the ranchette affects its appeal and value. In the Texas ranchette market, the most popular sizes tend to be 5 to 20 acres for properties near cities and 10 to 50 acres for properties in more rural settings. The usability of the acreage matters as well — a 10-acre tract that is mostly flat, usable pasture is worth more than a 10-acre tract that is mostly steep, rocky hillside. The shape of the property (a square or rectangular tract is more usable than a long, narrow strip), the topography, the vegetation, and the overall "feel" of the property all contribute to its appeal and value. Note buyers assess these characteristics holistically, considering how attractive the property would be to potential ranchette buyers and how quickly it could be sold in a foreclosure scenario.

Regional Ranchette Markets in Texas

Ranchettes are popular throughout Texas, but certain regions have particularly active markets that support strong note values.

Central Texas and the Hill Country

The Hill Country and the broader Central Texas region is the premier ranchette market in the state. Communities within commuting distance of Austin and San Antonio — including areas around Dripping Springs, Wimberley, Blanco, Marble Falls, Llano, Fredericksburg, and Boerne — offer Hill Country ranchettes that combine stunning scenery with reasonable access to major metro employment. Property values in this region carry a significant lifestyle premium driven by the Hill Country's natural beauty and cultural appeal. Notes backed by Hill Country ranchettes benefit from this premium and typically receive the most competitive offers in the ranchette category.

North Texas and the DFW Exurbs

The exurban ring around Dallas-Fort Worth — including communities in Wise, Parker, Johnson, Ellis, Kaufman, and Hunt counties — has seen a surge of ranchette development as families seek affordable acreage within commuting distance of the metroplex. Ranchette values in these areas are generally lower than in the Hill Country but have been appreciating steadily as the DFW metro expands outward. Notes backed by DFW-area ranchettes benefit from the massive employment base of the metroplex and the strong demand from commuters and lifestyle buyers.

Southeast Texas and the Houston Exurbs

The areas surrounding Houston — including portions of Waller, Grimes, Austin, Colorado, and Liberty counties — offer ranchette opportunities for Houston-area workers seeking country living. The flat to gently rolling terrain, the availability of water, and the agricultural heritage of these communities make them natural ranchette territory. Property values are moderate, and the notes are well-received by buyers who appreciate the stable demand generated by the Houston metro's enormous employment base.

South Texas

Ranchettes in South Texas, including properties near San Antonio's southern suburbs and in the brush country counties, offer a different character — drier climate, native brush vegetation, and a strong hunting and outdoor culture. Values are generally lower per acre than in the Hill Country but the appeal to lifestyle buyers who want a South Texas experience is genuine. Notes backed by South Texas ranchettes can receive competitive offers, particularly if the property has good water, wildlife, and proximity to San Antonio.

Ranchette Note Discounts — Setting Expectations

Ranchette notes generally fall in a favorable discount range, reflecting the broad buyer appeal and the strong demand for this property type.

Typical Ranges

For performing ranchette notes in Texas, discounts typically range from 10% to 28% of the remaining balance. Notes backed by Hill Country ranchettes near growing cities with strong payment histories and favorable terms receive offers at the lower end. Notes on more remote ranchettes or those with less favorable note characteristics face larger discounts. The relatively favorable discount range reflects the broad buyer appeal, the strong lifestyle demand, and the commuter-accessible locations that characterize most ranchette properties.

Getting the Best Price

To maximize your ranchette note's value, ensure complete documentation of both the note and the property, emphasize the borrower's payment performance, highlight the property's proximity to urban employment, document all improvements and water resources, and work with a direct buyer to avoid broker fees. If your ranchette has an agricultural tax valuation, provide documentation of this benefit and the resulting tax savings. Photos that capture the property's character and appeal can make a meaningful difference in the buyer's perception of the collateral. For a detailed look at discounts, see this article on discounts when selling a land note in Texas.

Ready to Sell Your Note?

If you're ready to sell your ranchette note in Texas, Longhorn Note Buyers is the ideal partner for your transaction. We understand the ranchette market's unique position at the intersection of suburban and rural, and we have the experience to evaluate your note with the nuance and accuracy it deserves. We've purchased more than $46 million in Texas land notes since 2007, with a 100% close rate on every deal, and our founder Nick McFadin has been buying notes since 1983.

We are a direct buyer with our own capital — no brokers, no middlemen, and no surprises. Our A+ BBB rating reflects our commitment to fair, transparent dealings with every seller we work with. Whether your note is backed by a Hill Country ranchette, a DFW exurban property, a Houston-area horse tract, or any other ranchette in the state, we can evaluate it and provide a competitive cash offer within 24 hours.

Call us today at (210) 828-3573 or visit longhornnotebuyers.com to request your free, no-obligation quote. Selling your ranchette note in Texas puts cash in your hands from one of the most popular and in-demand property types in the state, and Longhorn Note Buyers is here to make it happen.

Frequently Asked Questions About Selling a Ranchette Note in Texas

What size property qualifies as a ranchette?

There is no official legal definition of a ranchette, but in the Texas market, the term generally refers to properties of 5 to 50 acres that are used for a combination of residential living and light agricultural or recreational purposes. The most popular ranchette sizes are in the 5 to 20 acre range near growing cities, with larger tracts of 20 to 50 acres more common in areas further from metro centers. Note buyers do not have a strict acreage requirement for what they consider a ranchette — they evaluate each property based on its specific characteristics, location, and market position.

Does having horses or livestock on the property affect my note?

The presence of horses or livestock on the property does not directly affect the note's value, but it can have indirect positive effects. Livestock use can support an agricultural tax valuation that reduces property taxes, making the property more affordable for the borrower and more attractive as collateral. The fact that the property is being actively used for agricultural purposes suggests that the borrower is engaged with the land and committed to maintaining it, which are positive indicators for note performance. If the ranchette is being used for livestock and carries an agricultural valuation, include this information in your documentation.

How does the remote work trend affect ranchette note values?

The shift to remote and hybrid work has been one of the most significant drivers of ranchette demand in recent years. Workers who no longer need to commute to an office daily can live further from the city, making ranchettes that were once too distant for daily commuting suddenly practical as primary residences. This expanded demand base has pushed ranchette values upward and deepened the market, both of which are positive for note holders. Note buyers who are aware of this trend may factor the improved demand dynamics into their assessment, potentially supporting better offers for ranchettes in areas that have benefited from the remote work migration.

Can I sell a ranchette note if the property has no house on it?

Yes, ranchette notes can be sold regardless of whether there is a house on the property. Many ranchettes are purchased as bare land with the intention of building a home in the future, and note buyers are accustomed to evaluating these deals. The absence of a house means the property's value is based entirely on the land and any non-residential improvements (fencing, wells, barns), which is a straightforward assessment. If the borrower has plans to build but hasn't started yet, the note is evaluated based on the current property value, not on the future intended use.

How fast can I sell my ranchette note?

The typical timeline is two to four weeks from initial contact to funding. The preliminary offer comes within 24 hours. Due diligence takes one to two weeks for ranchettes in active markets near cities, potentially slightly longer for more remote properties. Closing is completed within a few business days after due diligence. Providing complete documentation — including photos, survey, improvement details, and agricultural tax information — at the outset helps speed the process.