Sell Your Rural Acreage Note in Texas: A Complete Guide

Texas has more rural land than any other state in the continental United States, and the dream of owning a piece of the Texas countryside — whether for ranching, farming, hunting, a family homestead, or simply the freedom of wide-open space — is deeply woven into the state's cultural identity. If you hold a promissory note secured by rural acreage in Texas, you own a financial asset backed by a property type that appeals to a broad and passionate segment of buyers, from first-generation landowners fulfilling a lifelong dream to seasoned investors building rural portfolios. The decision to sell your rural acreage note in Texas can convert years of monthly payments into immediate cash, and understanding how note buyers evaluate rural land collateral will help you navigate the process and maximize your return.

Rural acreage in Texas encompasses a vast spectrum of properties — from 10-acre ranchettes on the outskirts of growing cities to 500-acre cattle operations in the Panhandle, from wooded tracts in the piney woods to open prairie in the Rolling Plains. What defines rural acreage as a category is its distance from urban centers, its larger lot sizes relative to suburban development, and its use for agricultural, recreational, or residential purposes that require space and separation from city life. These characteristics create a market with its own dynamics, valuation methods, and buyer expectations that differ meaningfully from the suburban and urban land markets that most people are more familiar with.

Whether your note is backed by a small ranchette near a growing Texas city, a mid-size tract in the agricultural heartland, a large ranch in West Texas, or any other type of rural acreage anywhere in the state, this guide covers everything you need to know about selling your rural acreage note in Texas and getting the best possible price for your asset.

What Makes Rural Acreage Different as Note Collateral

Rural acreage has distinctive characteristics that set it apart from other types of real estate collateral. Note buyers approach rural land notes with a specific set of considerations that reflect the property's unique nature and the dynamics of the rural land market.

Value Driven by Land Use and Natural Resources

Unlike suburban lots that are valued primarily by location relative to employment, schools, and amenities, rural acreage derives its value from a combination of factors tied to the land itself — soil quality, water availability, grazing capacity, timber production, wildlife habitat, mineral rights, and scenic appeal. A 100-acre tract of rich Blackland Prairie farmland in Central Texas is valued on fundamentally different criteria than a 100-acre tract of brush country in South Texas or a 100-acre pine-covered parcel in East Texas. Note buyers evaluating rural acreage must understand these land-use-specific valuation drivers to accurately assess the collateral, and not every buyer has the expertise to do so. Working with a buyer who understands the Texas rural land market across its many regions and property types is essential for getting a fair assessment.

Agricultural Tax Valuations and Carrying Costs

One of the most important economic features of rural acreage in Texas is the availability of agricultural tax valuations, which can dramatically reduce property tax obligations. Properties that are actively used for agriculture — whether livestock grazing, crop production, timber, or wildlife management — can be assessed for property tax purposes at their agricultural productivity value rather than their market value, resulting in tax savings that can amount to thousands of dollars per year. This tax advantage makes rural land more affordable to own and hold, which supports property values and makes borrowers more likely to keep their notes current. Note buyers recognize the benefit of agricultural tax valuations and factor them into their assessment of the collateral's desirability and long-term viability.

Larger Parcel Sizes and Higher Total Values

Rural acreage notes often involve larger parcel sizes than suburban residential notes, which means that even at modest per-acre prices, the total property value — and therefore the note balance — can be substantial. A 200-acre ranch at $3,000 per acre represents a $600,000 property, while a half-acre suburban lot in the same county might be worth $50,000. This difference in scale means that rural acreage notes can represent significant financial assets with commensurately large purchase prices when sold. The flip side is that the buyer pool for large rural tracts is more specialized than for small suburban lots, which can affect liquidity and the speed of a potential foreclosure sale.

Multiple Revenue Streams and Uses

Rural acreage in Texas often supports multiple uses and revenue streams simultaneously. A single property might generate income from cattle grazing, hunting leases, timber harvesting, oil and gas royalties, wind or solar energy leases, and agricultural crop production. These diverse income sources enhance the property's economic value and can make borrowers more financially resilient because they are not dependent on a single source of income to make their note payments. Note buyers view properties with multiple revenue streams favorably because they provide additional assurance that the borrower has the financial capacity to maintain the note and because the property's diverse economic utility makes it more marketable in a foreclosure scenario.

How to Sell Your Rural Acreage Note in Texas

Selling a rural acreage note follows the standard Texas note-selling process, with additional attention to documenting the land-specific attributes that drive the property's value.

Assemble Comprehensive Documentation

Start with the standard note documents — promissory note, deed of trust, payment history, title insurance, and amendments — and supplement them with materials that help the buyer understand the property's value. For rural acreage, relevant supplements include a property survey or plat showing boundaries, terrain features, and improvements; documentation of agricultural tax valuation status; information about water resources (wells, springs, stock tanks, creek frontage); any mineral rights documentation; soil surveys or agricultural productivity reports; hunting lease agreements; timber cruise reports for wooded properties; and photos or aerial imagery showing the property's condition and features. The more information you can provide about the property's attributes and uses, the more confidently the buyer can assess the collateral and the better your offer is likely to be. For the standard document checklist, see this resource on documents needed to sell a land note in Texas.

Choose a Buyer with Rural Land Expertise

Rural acreage valuation requires knowledge of agriculture, natural resources, regional land markets, and the diverse uses that Texas rural land supports. A note buyer whose experience is primarily with suburban residential notes may lack the context to properly value a 150-acre cattle ranch in the Cross Timbers or a 300-acre tract with oil production in the Permian Basin. Longhorn Note Buyers has been purchasing land notes across all of Texas since 2007, including rural acreage notes in every region of the state, and we bring the breadth of experience needed to evaluate your note accurately. Our founder, Nick McFadin, has been buying Texas notes since 1983, and our decades of statewide experience give us the perspective to assess rural acreage collateral in the context of the broader Texas land market.

Due Diligence for Rural Acreage

Due diligence for rural acreage notes includes the standard title search and payment verification, along with a property valuation that accounts for the land's specific attributes. The buyer will use comparable sales of similar rural properties in the same region, which can be more challenging to find than comparables for suburban lots because rural transactions are less frequent and the properties are more varied. The buyer may also consider the property's agricultural income potential, mineral rights value, timber value, and recreational appeal as part of the overall collateral assessment. The due diligence phase typically takes one to three weeks, with the timeline depending on the availability of comparable sales and the complexity of the property's attributes.

Closing and Funding

After due diligence, closing follows the standard path — 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 five weeks for rural acreage notes, with the variability reflecting the additional time that may be needed for specialized valuations. Properties with clear titles, thorough documentation, and locations in active rural land markets tend to close at the faster end of the range.

What Note Buyers Evaluate in Rural Acreage Collateral

Note buyers assessing rural acreage apply the standard note analysis along with a detailed assessment of the land's attributes and market position.

Standard Note Factors

Interest rate, payment history, remaining balance, remaining term, and loan-to-value ratio remain the core drivers of note value. A strong payment history with 24 or more months of seasoning is the most powerful factor you can present, and it is particularly important for rural acreage notes where the buyer may have less familiarity with the specific property type. Higher interest rates and standard amortizing structures contribute to better offers, just as they do for any note. For a comprehensive overview of valuation factors, see this article on what determines note value in Texas.

Water Resources

Water is arguably the single most important natural resource factor in rural Texas land valuation. Properties with reliable water sources — including productive wells, spring-fed creeks, river frontage, stock ponds, or access to rural water supply systems — are significantly more valuable than dry properties that lack dependable water. In many parts of Texas, particularly the Hill Country, West Texas, and the Rolling Plains, water scarcity is a defining constraint on land use and value. Note buyers will assess the property's water resources carefully because water availability affects the land's agricultural productivity, its suitability for residential use, its wildlife carrying capacity, and its overall marketability. If your property has strong water resources, documenting them thoroughly — including well production rates, water quality reports, and photos of water features — can meaningfully improve the buyer's assessment.

Road Access and Infrastructure

Rural acreage that is accessible via paved county roads or state highways is worth more than property that requires traveling over unimproved dirt roads or through neighboring properties. The quality of road access affects not only the property's convenience and usability but also its marketability in a foreclosure scenario — a property that is difficult to reach is harder to sell. Interior improvements like maintained roads, fencing (both perimeter and cross-fencing), pens and corrals, water troughs, and electricity service all add to the property's functional value and demonstrate that it has been actively used and maintained. Note buyers will factor the property's accessibility and infrastructure into their collateral assessment.

Location Relative to Growing Markets

Rural acreage that is located within a reasonable distance of a growing Texas city often carries a "path of growth" premium that reflects the potential for future development. A 100-acre tract that is 30 minutes from a rapidly expanding suburban frontier may be worth considerably more than a similar tract that is two hours from the nearest city, because the closer property has the potential to be converted to residential or commercial use as the city expands outward. Note buyers recognize this conversion potential and may factor it into their assessment, particularly for properties in the growth corridors of the Austin, San Antonio, Dallas-Fort Worth, and Houston metros. If your property is in the path of metropolitan expansion, mentioning recent development activity and growth trends in the area can help the buyer appreciate this additional value dimension.

Mineral Rights and Subsurface Value

In Texas, mineral rights are a significant consideration for rural acreage because they can add substantial value to the property. If the mineral rights are intact and included in the security for the note, they enhance the collateral's total worth and can support a better offer. Properties with active oil and gas production or existing mineral leases generate royalty income that adds an economic dimension beyond the surface value. Even properties without current production may have valuable mineral rights if they are located in an active oil or gas basin. Note buyers will want to understand the mineral rights status — whether they are intact, severed, leased, or producing — and any documentation you can provide about the mineral estate will help them assess the full value of the collateral.

Regional Considerations for Rural Acreage Notes in Texas

Texas's enormous geographic diversity means that rural acreage values, characteristics, and buyer demographics vary dramatically from one region to another. Understanding the regional dynamics that apply to your property will help you set appropriate expectations.

Central Texas and the Hill Country

Rural acreage in Central Texas and the Hill Country commands some of the highest per-acre prices in the state for non-irrigated land, driven by the scenic beauty of the landscape, the proximity to Austin and San Antonio, and the strong demand from both recreational buyers and lifestyle-motivated relocators. Properties with Hill Country views, live oaks, creek frontage, or proximity to popular towns like Fredericksburg, Wimberley, and Johnson City carry particularly strong premiums. Notes backed by Hill Country rural acreage benefit from this premium market and typically receive competitive offers, though the variability of Hill Country terrain and water availability means that each property must be evaluated on its own merits.

North and Central Texas Farmland

The Blackland Prairie and Cross Timbers regions of North and Central Texas offer some of the most productive agricultural land in the state, with rich soils suitable for row crops, improved pasture, and hay production. Rural acreage in these regions is valued based on its agricultural productivity, and per-acre prices reflect the income potential of the land. The proximity of some of this farmland to the Dallas-Fort Worth and Austin-Waco growth corridors adds a conversion premium for properties in the path of development. Notes backed by productive farmland in these regions are well-received by buyers who understand the agricultural land market.

East Texas Piney Woods

East Texas rural acreage offers a combination of timber value, agricultural use, hunting and recreation, and a lush, green landscape that is distinct from the drier regions of the state. Per-acre prices in East Texas are generally lower than in Central Texas or the Hill Country, but the timber production capability and the recreational appeal of the piney woods add value that offsets the lower land prices. Notes backed by East Texas rural acreage are sellable at moderate discounts, with the specific pricing reflecting the property's timber value, water features, location, and overall appeal.

South Texas Brush Country

South Texas rural acreage is valued primarily for its hunting and ranching potential. The dense native brush provides excellent habitat for white-tailed deer, and managed hunting ranches in this region command impressive per-acre premiums. Cattle ranching remains an important use, and the region's mild winters support year-round grazing. Notes backed by South Texas rural acreage benefit from the strong hunting land market, though the remote nature of many properties and the specialized buyer pool mean that discounts may be larger than for comparable acreage closer to major metro areas.

West Texas and the Panhandle

West Texas and the Panhandle offer vast expanses of rural acreage at the lowest per-acre prices in the state, reflecting the arid climate, sparse vegetation, and remote locations. Properties in this region are used primarily for ranching, oil and gas production, wind energy, and some irrigated agriculture. The large acreages typical of West Texas properties can result in substantial total values despite the low per-acre prices. Notes backed by West Texas rural acreage face the largest discounts due to the limited buyer pool and the challenging marketability of remote, arid-climate properties, though properties with mineral production or other income-generating features can receive more competitive offers.

The Discount on Rural Acreage Notes — Setting Expectations

Discounts on rural acreage notes vary widely depending on the property's region, characteristics, and the standard note factors.

Typical Discount Ranges

For performing rural acreage notes in Texas, discounts typically range from 12% to 35% of the remaining balance. Notes backed by premium Hill Country or Central Texas acreage with strong payment histories and favorable terms receive offers at the lower end. Notes backed by remote West Texas or Panhandle properties, or those with less favorable note characteristics, face larger discounts. The wide range reflects the enormous diversity of rural acreage across the state and the varying levels of market liquidity that different regions and property types offer.

Strategies for Minimizing the Discount

The strategies for reducing the discount on a rural acreage note are consistent with those for any land note, with some additional considerations. Complete documentation of the property's attributes — water resources, improvements, agricultural productivity, mineral rights, and recreational value — helps the buyer assess the collateral with confidence. A strong borrower payment history is the most impactful factor. Working with a direct buyer eliminates broker commissions. Providing comparable sales data from the property's specific region helps ensure accurate valuation. And highlighting any income the property generates — from agricultural operations, hunting leases, mineral royalties, or other sources — gives the buyer additional data points to support the collateral's value. For a detailed exploration of discount factors, read this article about discounts when selling a land note in Texas.

Common Reasons to Sell a Rural Acreage Note

Rural acreage note holders sell for many of the same reasons as other note holders, with some motivations that are particularly common in this market.

Converting an Illiquid Asset to Liquid Capital

Rural acreage notes are among the most illiquid types of financial assets — the monthly payments arrive slowly, the collateral is specialized, and the rural land market moves at its own pace. For note holders who need or want access to their capital for investments, purchases, debt repayment, or other purposes, selling the note is the most efficient way to convert this illiquid asset into cash. The note buyer has the patience, the capital, and the expertise to hold the note and collect payments over time, while you get the benefit of immediate liquidity.

Simplifying Long-Distance or Complex Management

Managing a note on rural acreage can involve complexities that don't apply to suburban residential notes — monitoring agricultural operations, tracking property tax exemptions, verifying insurance on structures and improvements, and staying informed about local land market conditions. For note holders who live far from the property or who don't have background in rural land management, these complexities can be burdensome. Selling the note eliminates the management burden and replaces it with the simplicity of a one-time cash payment.

Capturing Appreciation in Growing Markets

Rural acreage in the growth corridors of Texas's major metros has appreciated significantly as urban expansion pushes outward. Note holders with property in the path of growth may recognize that the current market represents a favorable time to sell, capturing the benefit of appreciation before the growth trajectory potentially slows or the market landscape changes. For properties that are 30 to 60 minutes from rapidly expanding suburbs, the conversion premium can be substantial, and selling the note allows you to monetize that premium today. For more on how selling quickly works, see this article on selling a land note fast in Texas.

Ready to Sell Your Note?

If you're ready to sell your rural acreage note in Texas, Longhorn Note Buyers has the experience, the capital, and the statewide market knowledge to provide you with a fair, competitive cash offer. We've purchased more than $46 million in Texas land notes since 2007, including rural acreage notes across every region of the state, and our 100% close rate means that every offer we make is a genuine commitment to purchase. Our founder, Nick McFadin, has been buying Texas notes since 1983, and our team understands the Texas rural land market at a level that comes only from decades of statewide experience.

We are a direct buyer — not a broker — which means we purchase with our own capital, and there are no middlemen, no hidden fees, and no surprises between your quote and closing. Whether your note is secured by Hill Country acreage, East Texas timberland, South Texas ranchland, Blackland Prairie farmland, or any other type of rural acreage in the state, we can evaluate it accurately and provide a 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 rural acreage note in Texas puts immediate cash in your hands and frees you from the complexities of managing a specialized asset, and Longhorn Note Buyers is here to make it happen.

Frequently Asked Questions About Selling a Rural Acreage Note in Texas

How is rural acreage valued differently from suburban lots?

Rural acreage is valued based on its land-use attributes — soil quality, water resources, grazing capacity, timber production, wildlife habitat, mineral rights, and recreational appeal — rather than the proximity-to-amenities factors that drive suburban lot values. The comparable sales used to value rural acreage are drawn from other rural transactions in the same region, which may be less frequent and more variable than suburban sales. This difference means that rural acreage valuations require specialized knowledge of the local land market and the specific attributes that drive value in each region. Working with a buyer who has this expertise ensures your collateral is valued fairly.

Does having an agricultural tax exemption help my note?

Yes, an agricultural tax valuation is generally a positive factor for note valuation because it significantly reduces the property's annual carrying costs. Lower property taxes make the land more affordable to own, which supports borrower payment performance and makes the property more attractive to potential future buyers. Note buyers recognize that agricultural valuations enhance the property's economic viability and factor this into their assessments. If your property has an agricultural valuation, providing documentation of the exemption and the resulting tax savings is helpful context for the buyer.

What if my rural property has oil or gas production?

Active oil or gas production on your property can significantly enhance the collateral's value if the mineral rights are included in the security for the note. Production generates royalty income that adds an economic dimension beyond the surface value, and it can make borrowers more financially resilient. Note buyers will want to see documentation of any mineral leases, production volumes, and royalty income. If the mineral rights have been severed from the surface estate, the note buyer will base their assessment solely on the surface value. Be clear about the mineral rights status when presenting your note.

Can I sell a note on a small ranchette of just 10 or 20 acres?

Absolutely. Small ranchettes of 10 to 20 acres are one of the most popular property types in the Texas rural land market, appealing to first-time rural buyers, families seeking a weekend escape, and retirees looking for a small country property. Notes on these smaller tracts can be very attractive to buyers because they represent a manageable investment size with a property type that has broad market appeal. The note balance will be correspondingly smaller than for a large ranch, but the evaluation process is the same, and a small ranchette note with a good payment history and favorable terms can command a competitive offer.

How fast can I sell my rural acreage note?

The typical timeline is two to five weeks from initial contact to funding. The preliminary offer comes within 24 hours. Due diligence takes one to three weeks depending on the property's complexity and the availability of comparable sales data. Properties near growing metro areas with more active land markets tend to close faster, while remote properties with specialized characteristics may take slightly longer. Closing is completed within a few business days after due diligence.