The Home Buying Process in Texas

If you’re thinking of buying a home in Texas, congratulations! Roughly 1,200 people move to Texas per day because of its strong economy, low unemployment rate, reasonable cost of living, and great lifestyle options. It’s because of this growth and expansion that you’re likely to enjoy some nice gains in equity if you buy a home in Austin, Texas or surrounding areas like Cedar Park, Leander, Round Rock, and Buda. The process to buy a home in Texas is fairly straightforward, but does differ from other states. This article will be oriented around buying a resale home or condo; however, I can teach you a thing or two about buying a new construction home in Texas as well.

Here’s what you need to know about the home buying process in Texas.

But first…

There are a million articles online about the steps to buying a home in Texas. Many are stuffed with so much information that it can feel overwhelming when it comes time to actually start the process of buying a home. I’ve also seen people become so confident about the knowledge they’ve gained through their research that they fail to be agile in a shifting market or develop a strategic plan that might require a more nuanced approach for certain situations.

I like to help people by bringing simplicity to the home buying process; reducing the uncertainty and stress of what can be a very overwhelming experience. (You can learn more about how I do this here.) So please know that the following steps are more general for a reason. When and if we choose to work together, details will be added to the home buying process that are uniquely relevant to your specific situation and goals.

7 Steps to Buying a Home in Austin, Texas

It’s not rocket science, but similar to a pre-launch checklist there is a common process that most transactions should follow. 

1. Buyer Consultation & Discovery

• Discuss your needs, goals, and timeline
• Review market conditions to set realistic expectations
• Connect with local lenders based on your needs

2. Buyer Representation Agreement

•  Solidify working relationship
• Align on communications frequency and style

• Find and curate publicly available and off-market inventory
• Collaborate via Compass Collections

4. Offer Submission

• Uncover any strategically useful information about the home, the seller’s wants and needs, and other potential offers
• Prepare a strategic, competitive offer

5. Contract-to-Close Navigation

• Coordinate inspection and negotiate repairs/concessions
• Facilitate fluid communication between lender, title, appraiser, seller
• Pre-closing walkthrough, funding and keys

6. Housewarming 

• Move-in and nesting support
• Assistance in reviewing tax proration calculations and applying for homestead exemption

Needs Assessment

Many of my clients come to me already knowing what they want… a four-bedroom, three-bathroom home with a large yard in a great school system, blah, blah, blah. That’s a start. However, if you’re working with a REALTOR® that doesn’t ask more probing questions, get ready to waste a ton of time and miss some great opportunities. 

During a home-buyer consultation, I like to cover:

• Why are you looking at this time?
• How do you envision your life in your ideal neighborhood and home?
• Tell me about you/your family. Do you have pets? Hobbies?
• What neighborhood characteristics are important to you? 
  • Space/lot size
  • Community participation
  • Distance to airport, downtown, greenspaces, etc.
• What property characteristics are important to you?
  • Room count
  • Floorplan
  • Maintenance/condition
  • Garage/parking
• What are your “deal breakers” that you won’t compromise on?
• What is your ideal price range?
• Would you need to sell to purchase?
• Have you spoken to a lender?
• Is there anything else I should know about your requirements?
• What is your ideal way of working together?

Home Buyer Checklist

Alright, now we’re getting closer! With the considerations above in mind, your REALTOR® (preferably me:) will start curating options for you to explore. As a homebuyer, you’ll have some work in front of you also:

→ Assemble a team of experienced, local professionals. Start by working with a real estate advisor committed to putting you first… that’s me! From mortgage lenders, real estate attorneys, insurance contractors, inspectors, title companies and more, I can steer you in the direction of reputable resources that have been vetted to meet high standards of customer care (and not f*ck up the process). 

→ Speak to a lender and get pre-qualified for a loan or obtain proof of funds if you’re considering an all-cash offer. 

→ Have money on hand and factor in closing costs. Typically 2-5% of the offer price for a home, closing costs are due at the end of the transaction and will include payment for things like title insurance, transfer fees, repayment for appraisal, prorated taxes, recording of the deed and so on. Then, prepare yourself. When an offer is accepted, you’re going to be writing a lot of checks. Earnest money, your option fee, inspections, fees to request the HOA resale certificate, and potentially other costs will be due within the first 15 days or so. Don’t get caught off guard; make sure you have cash on hand to cover those costs too. 

→ Accept my invitation to the Compass app. Simply click on the “Accept Invitation” button in the Compass Collections email I’ll send you or download the mobile version of the app. iOS | Android

→ And finally, follow the 10 commandments of home buying:

1. Thou shalt not change jobs, become self-employed or quit your job
2. Thou shalt not buy a car, truck or van
3. Thou shalt not use credit cards excessively or let current accounts fall behind
4. Thou shalt not spend money you have set aside for closing
5. Thou shalt not omit debts or liabilities from your loan application
6. Thou shalt not buy furniture on credit
7. Thou shalt not make large deposits without checking with your loan officer
8. Thou shalt not originate any inquiries into your credit
9. Thou shalt not change bank accounts
10. Thou shalt not co-sign a loan for anyone

Always talk to your real estate advisor and lender before breaking any of the commandments noted above!

Home Search Mindset

When you get ready to search for your home, shift your mindset from seeking perfection to evaluating the hierarchy of price, location, condition, layout, value and time. Looking at homes through the lens of these factors may help you find a great home you may not have considered otherwise, and it will make your home search much more efficient. 

I’d love to help you plan your approach to getting the home you need in the neighborhood you desire. Call, text, or email me today to chat about what the next steps could look like for you.