The Ultimate Guide to Buying a House in Texas

Buying a house in Texas can feel overwhelming, especially if you’re new to the process or relocating from another state. Texas has a unique real estate market with its own rules, costs, and opportunities. This guide breaks down everything you need to know to make confident decisions and find the right home for you.

A modern Texas home with a large front yard

Understand the Texas Housing Market

Texas is a large state with diverse housing markets. Cities like Austin, Dallas, Houston, and San Antonio each have different price ranges, growth rates, and neighborhood vibes. Before you start house hunting, research the market in your preferred area.

• Austin has seen rapid growth and rising prices due to tech industry expansion.

• Houston offers more affordable options but varies widely by neighborhood.

• Dallas combines urban living with suburban communities.

• San Antonio tends to have lower prices and a slower pace.

  
  

Knowing the local market helps you set realistic expectations and budget accordingly.

Set Your Budget and Get Pre-Approved

Determine how much house you can afford by reviewing your income, debts, and savings. Use online mortgage calculators to estimate monthly payments including taxes and insurance. Then, get pre-approved for a mortgage from a lender. Pre-approval shows sellers you are a serious buyer and helps you understand your borrowing limit.

Keep in mind Texas property taxes can be higher than in other states, often around 1.8% to 2.3% of the home’s value annually. Factor this into your budget.

Choose the Right Type of Home

Texas offers many housing options:

• Single-family homes are the most common and offer privacy and space.

• Townhomes and condos may be more affordable and require less maintenance.

• New construction homes let you customize but may take longer to move in.

• Resale homes can be more affordable but might need repairs or updates.

  
  

Consider your lifestyle, family size, and long-term plans when choosing the type of home.

Find a Knowledgeable Real Estate Agent

A local real estate agent can guide you through the Texas home buying process. They know the neighborhoods, market trends, and legal requirements. Look for an agent with good reviews and experience in your target area. An agent can help you:

• Find homes that meet your criteria

• Negotiate price and terms

• Navigate contracts and inspections

• Coordinate closing details

  
  

Visit Homes and Evaluate Carefully

Once you have a list of potential homes, schedule visits to see them in person. Pay attention to:

• The condition of the roof, foundation, and major systems (HVAC, plumbing, electrical)

• Neighborhood safety and amenities

• Commute times to work or school

• Potential for future resale value

  
  

Take notes and photos during visits to compare later.

Make an Offer and Negotiate

When you find the right home, your agent will help you submit an offer. In Texas, offers often include earnest money, a deposit showing your commitment. The seller may accept, reject, or counter your offer. Be prepared to negotiate price, closing date, and any repairs or contingencies.

Complete Inspections and Appraisals

After your offer is accepted, schedule a home inspection to identify any issues. Common problems in Texas homes include foundation cracks, plumbing leaks, or termite damage. You can request repairs or credits based on the inspection report.

Your lender will also order an appraisal to confirm the home’s value matches the loan amount.

Understand Texas Closing Costs and Process

Closing costs in Texas typically range from 2% to 5% of the purchase price. These include:

• Title insurance and search fees

• Loan origination fees

• Property taxes prorated to closing date

• Homeowner’s insurance premium

• Recording fees

  
  

Texas uses a title company or escrow agent to handle the closing. You will sign documents, pay closing costs, and receive the keys once everything is finalized.

Plan for Moving and Homeownership

After closing, plan your move carefully. Set up utilities, change your address, and schedule movers if needed. Owning a home also means budgeting for ongoing maintenance, property taxes, and insurance.

Texas weather can affect your home’s upkeep. For example, hot summers may require regular AC maintenance, and some areas need termite prevention.