The Hidden Cost of Texas Land Deals: Why Infrastructure & Entitlements Decide the Winner
What smart investors and builders are underwriting before they ever talk price
In today's Texas land market, cheap land is no longer the advantage. Execution is.
At Power Land Group (PLG), we're seeing deals fail, or get repriced hard, not because the dirt was bad, but because infrastructure, entitlements, and timelines were misunderstood. The investors and builders still winning in Texas are underwriting land like a business, not a gamble.
Here's what the market is quietly signaling.
Why "Raw Land" Isn't Really Raw Anymore
Ten years ago, Texas land deals were often driven by acreage and proximity. Today, buyers are asking harder questions:
- Where does the water actually come from?
- Is sewer on-site, off-site, or theoretical?
- What zoning exists today, not "likely" later?
- How long until vertical construction can begin?
Land without clear answers isn't discounted. It's avoided.
The 5 Hidden Deal Killers in Texas Land Transactions
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Utility assumptions
Water and sewer are now deal-defining variables. Buyers want documented utility availability (not assumptions), capacity confirmation (not just "nearby"), and cost certainty per lot or per phase.
If utilities require off-site extensions, lift stations, or political approvals, the land's value changes immediately.
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Entitlement drag
Entitlements are no longer a footnote. They're timeline risk. Investors and builders price based on zoning already in place, recorded plats vs. conceptual layouts, and known municipal review cycles.
Land that can be entitled someday is not the same as land that is entitled.
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Permitting speed by jurisdiction
Texas is business-friendly, but not uniform. Some municipalities move plans in weeks. Others take quarters. Sophisticated buyers price the jurisdiction as much as the land itself.
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Impact fees and off-site costs
Impact fees, drainage requirements, and roadway improvements can quietly destroy spreads. Winning sellers now provide impact fee estimates, known off-site obligations, and clarity on what's already been paid vs. what's outstanding.
Surprises equal price reductions.
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Exit liquidity
The best land deals answer one question clearly: "Who is the buyer at the end, and are they active right now?" Infill builders, production builders, and small developers each underwrite differently. Land that fits today's buyer pool trades faster and stronger.
What Smart Texas Sellers Are Doing Differently
Landowners who close faster and at higher certainty are:
- Packaging documentation upfront (utilities, entitlements, fees)
- Understanding their buyer (builder vs. investor)
- Pricing based on execution reality, not online comps
- Staying flexible on structure (phased sales, partial releases)
The result is fewer retrades and stronger offers.
How PLG Evaluates Texas Land
At Power Land Group, we focus on buildability first, execution risk second, and price third.
We specialize in positioning land for the right buyer, not just any buyer, particularly across San Antonio, Austin, and DFW growth corridors where infrastructure, population growth, and builder demand intersect.
Ready to Position Your Land for Maximum Value?
If you're evaluating a Texas land asset, PLG can help you:
- Identify the highest-probability buyer type
- Understand true utility and entitlement risk
- Structure a cleaner, faster disposition
Get the PLG Land Intake Checklist
Email: rb@powerlandgroup.com
Visit: powerlandgroup.com
Power Land Group
Where execution meets opportunity in the Texas land market.