Ultimate Guide to Buying a Home in Texas - 2025 Edition
By Alex Mikoulianitch on January 08, 2025
Buyers who set their sights on buying a home in Texas will enjoy a long list of perks.
It’s not only access to the stunning neighborhoods of Houston and its equally vibrant suburbs or the eclectic hubs of Dallas and its collection of some of the best BBQs in the world. It’s access to a seemingly endless array of housing options, lifestyles, and, of course, no state income tax.
"Everything is bigger in Texas" is not a motto thrown around lightly in the Lone Star State. You’re looking at the second-largest state in the nation, which is also home to the fourth-largest city in the U.S.
This means you’ll have a lot of exploration to do when finding the perfect home in Texas. Couple that with a well-planned strategy to ensure a successful home purchase, and you’re looking at a hefty project.
Below, the team from Prevu Real Estate outlines a quick and easy guide to make the home buying process a bit less overwhelming. We’ll break down the essential steps you can follow to help organize your Texas homebuying journey and come out on top, including how to structure your budget and utilize commission rebates to save money.
Buying a home in Texas
- Determine what property type you want
- Hire an experienced buyer’s agent
- Explore various neighborhoods
- Get a fully underwritten pre-approval
- Benefit from commission rebates
- Keep the climate in mind
- Set up an effective budget
- Attend property tours and open houses
- Focus on due diligence
- Prepare for closing
Determine what property type you want
If you have a crystal clear image of the home you want, you already completed a significant portion of the work.
Deciding on your home's exact features, style, and location is not always easy. You must consider commuting, lifestyle preferences, budget limitations, and potential backup plans. But once you have that work all set, you can move quickly on listings that fit your needs, giving you an upper hand in Texas’s competitive market.
Start by determining the home type you want. Then, you can decide which neighborhood to search and how much home you can afford.
Condos are perfect for those seeking low-maintenance living with plenty of amenities. For example, areas like Uptown and Deep Ellum in Dallas offer modern condos with perks like pools, fitness centers, and concierge services. Buyers interested in similar options in Austin can explore areas like Travis Heights and Barton Hills, while Houston enthusiasts should check out Downtown Houston and Montrose, each with its own collection of high-end condo options.
The more amenities and luxuries, the higher the price point. Yet, one can always explore condos with fewer perks to achieve affordability. However, be prepared for HOA fees and potential restrictions on renovations.
Townhouses compromise between the convenience of condos and the space of single-family homes. They usually have multiple floors, giving families more room while remaining relatively low-maintenance.
Lastly, single-family homes are ideal for those who prioritize space and privacy and are ready to take on the maintenance that comes with them.
Hire an experienced buyer’s agent
Access to online listings gives buyers a lot of control over their home search. But it’s easy to forget that buying a house in Texas involves plenty of complicated steps aside from scrolling through potential homes and choosing one you like. Navigating those steps alone can be challenging, especially in a grand market like Texas.
A buyer's agent acts as your advocate throughout the home-buying journey. They have extensive knowledge of local market trends, neighborhood insights, and property values, which is invaluable when searching for the perfect home. They also have access to Multiple Listing Services, where most of Texas’s most coveted listings are found.
Negotiation skills are another crucial aspect of a buyer's agent's role. They will negotiate with sellers and their agent to ensure you get the best possible deal, whether securing a lower price, favorable terms, or necessary repairs before closing. Their years of experience can help you avoid common pitfalls, organize inspections and appraisals, as well as navigate any challenges that arise during the transaction.
Most importantly, working with a brokerage specializing in commission rebates in Texas can potentially net you invaluable savings. We’ll get to that later on and why it’s important to always ask your real estate agent if they offer home buyer rebates.
Explore various neighborhoods
The key to finding the right neighborhood is prioritizing what matters most to you and your lifestyle needs.
Consider factors such as proximity to work, access to public transportation, and the amenities you value, like parks, restaurants, and cultural attractions.
For instance, settling in the River Oaks neighborhood in Houston will net you an unparalleled residential vibe that is unmistakably one of the most coveted in the city. Yet you’ll have to commit to a longer commute if you want to visit top Houston attractions like the Museum District and the entertainment scene of Downtown.
Start by doing thorough online research to understand the neighborhoods that align with your preferences. Look at real estate listings, read community reviews, and explore neighborhood guides to gather information about each area's vibe and characteristics.
Next, plan visits to your shortlist of neighborhoods. Spend time exploring, talking to residents, and experiencing the local atmosphere.
You may have heard great things about Austin’s famed Zilker neighborhood, but you’ll need to visit and feel the atmosphere for yourself before committing, especially when renowned live music festivals such as SXSW Music Festival and Austin City Limits come to town, drawing crowds of visitors.
Pay attention to details such as noise levels, traffic patterns, and the overall feel of the community. Visiting at different times of the day can give you a comprehensive view of the neighborhood’s dynamics.
Get a fully underwritten pre-approval
Before considering to make an offer, ensure you get a mortgage pre-approval. If possible, get it fully underwritten.
Unlike a basic pre-approval, which offers a preliminary estimate of how much you can borrow, a fully underwritten pre-approval confirms your loan amount, making you a more attractive buyer to sellers. This can be a decisive advantage in a competitive market where multiple offers are common.
Before taking this step, you’ll need to have all your finances in order, including financial documents, pay stubs, tax returns, bank statements, credit score, debt-to-income ratio, etc. The lender will review your situation to assess your ability to repay the mortgage loan and provide an estimate of the interest rate and mortgage payment you might achieve.. This level of detail and security in the loan amount helps reduce the risk of last-minute financing issues, giving you and the seller greater confidence in the transaction.
You can make stronger home offers once you have a fully underwritten pre-approval, as well. Sellers are more likely to consider offers from buyers with fully underwritten pre-approvals because they demonstrate serious intent and financial readiness.
A fully underwritten pre-approval allows you to close more quickly once you find a specific home. Since much of the underwriting process is completed upfront, the time required to finalize the loan is significantly reduced. This can make your offer more appealing to sellers eager for a swift and smooth transaction.
Benefit from commission rebates
Affordability becomes a key issue no matter how prepared you are to buy a home in Texas.
We mentioned earlier that it’s essential to consider brokerages that specialize in commission rebates; that’s because a commission rebate, also known as a homebuyer rebate, is one of the most effective ways to put cash back in your pocket when buying a home.
In simple terms, a commission rebate is a portion of your buyer’s agent’s commission that you will receive after a successful closing on a home. Brokerages that work with rebates unlock these special savings for buyers by leveraging smart technology and digital tools to help buyers take more control of their homebuying journey.
For example, Prevu currently offers the largest commission rebate in Texas, allowing buyers to potentially secure up to 1% of their home’s final purchase price cash back through its Smart Buyer Rebate.
Buyers gain access to expert salaried agents to guide them through the entire homebuying process, a digital homebuying platform that allows them to streamline their search, and finally, a rebate that can generate huge savings depending on the home’s final purchase price.
The extra funds can be invaluable for offsetting closing costs, replenishing savings, or jumpstarting renovations for your new home.
Keep the climate in mind
Though Texas is known for its hot summers, there’s much more to its climate than meets the eye, especially considering how weather affects homes and utility costs.
The Lone Star State’s heat can significantly impact utility bills as air conditioning becomes necessary. When viewing homes, pay close attention to the HVAC system's efficiency and the insulation quality. Energy-efficient windows, proper attic ventilation, and reflective roofing materials can help reduce cooling costs and maintain a comfortable indoor temperature.
The high humidity levels in many parts of Texas, particularly along the Gulf Coast, can also affect your home. Humidity can lead to mold growth, especially in poorly ventilated areas. Ensure the home has good ventilation systems, including exhaust fans in bathrooms and kitchens, to mitigate moisture buildup.
Those planning to exercise their green thumb should especially consider potential climate effects on landscaping.
Texas's hot and dry conditions can make maintaining a lush, green lawn challenging and water-intensive. Look for homes with drought-resistant landscaping, native plants, and efficient irrigation systems that conserve water.
Luckily, winter in Texas is generally mild, but occasional cold snaps and ice storms can occur. Ensure the home's plumbing is well-insulated to prevent pipes from freezing and bursting during sudden temperature drops. Check the condition of the roof and gutters, as ice accumulation can lead to leaks and water damage.
Set up an effective budget
Your pre-approval for a mortgage will provide a good outline for your broader budget, giving you a clear idea of your breathing room. A common beginner mistake first-time buyers make is not structuring their budget beyond the down payment.
Start by considering additional costs beyond the purchase price.
Closing costs in Texas are significant, ranging from 2% to 5% of the home's purchase price. These costs can include appraisal fees, title insurance, attorney fees, and other related expenses. Be sure to allocate funds for these in your budget to avoid any last-minute financial strain.
Unforeseen expenses are another critical component of your budget. Home inspections might reveal necessary repairs or updates you must address, which can quickly add up. Setting aside a contingency fund can provide a financial cushion for these unexpected costs.
Preparing for a potential bidding war is another aspect that shouldn’t be ignored. Homes in desirable areas often receive multiple offers, driving the final sale price. Having extra savings reserved specifically for this scenario can give you the edge to secure your dream home without overextending yourself financially.
Additionally, consider future maintenance and ongoing costs associated with homeownership. Your budget planning should include routine maintenance, property taxes, homeowners insurance, and potential homeowners association (HOA) fees.
Attend property tours and open houses
While photos and virtual tours can give you an initial impression, seeing a property in person allows you to experience its layout, space, and overall feel.
Open houses are particularly beneficial because they provide a no-pressure environment to explore multiple homes. They often attract other potential buyers, giving you a sense of the level of interest in the property. As you tour each home, note what stands out to you—positive and negative. This will help you compare different properties more effectively and identify your preferences.
During these visits, be sure to ask questions. Your buyer’s agent will be an invaluable resource here, as they can engage with the listing agent to learn more about the home’s history, recent renovations, and the reason for the sale.
Inquire about the age and condition of major HVAC, plumbing, and roof systems. Understanding these aspects can help you anticipate future maintenance needs and expenses.
Take your time to explore every part of the property, from the basement to the attic. Look for signs of wear and tear, such as cracks in the walls, water stains, or evidence of pests. These could indicate underlying issues that may require attention. Don’t hesitate to take photos and notes during your visit, as these will be useful references when comparing homes later.
Focus on due diligence
If you had to choose only one thing to pay special attention to when buying a home, ensure it’s due diligence.
Hire a professional inspector to evaluate the property's condition. They will check the structure, roof, plumbing, electrical systems, and other critical components. The inspection report will highlight any existing issues or areas that may need repairs in the future.
Additionally, verify if there have been any major renovations or additions and ensure they were done with the necessary permits and meet local building codes.
If you’re considering buying a condo in a building governed by an HOA, review the HOA’s rules, regulations, and financial health. Request copies of the HOA’s bylaws, meeting minutes, and financial statements. Understanding the HOA’s policies and upcoming assessments or fee increases will help you anticipate future costs and community obligations.
If you’re buying a property with shared amenities or common areas, such as in a condo complex, inspect these areas, as well. Assess the condition of facilities like pools, gyms, and common grounds. Poorly maintained amenities could indicate potential future costs for repairs or upgrades.
Prepare for closing
A smooth closing process in Texas real estate requires careful preparation and attention to detail to avoid any last-minute complications.
Gather all required documentation for closing day. This typically includes your identification, proof of homeowners insurance, the purchase contract, and any other documents requested by your lender or closing agent. Organizing these papers in advance will streamline the closing process and reduce stress.
Next, conduct a final walk-through of the property. This inspection, typically done a day or two before closing, allows you to ensure that the home is in the agreed-upon condition. Check that any requested repairs have been completed, all appliances are functioning correctly, and the property is free of new damage. This is your last chance to address any issues with the seller before taking ownership.
Coordinate with the seller regarding the transfer of utilities and keys. Arrange for utilities such as electricity, water, and gas to be transferred to your name as of the closing date. Also, confirm how and when you will receive the keys to your new home.
Finally, review your homeowner’s insurance policy to ensure it is active and provides adequate coverage. This protection is essential from the moment you take possession of the property.
Interested in buying a home in Texas? Browse listings in your favorite city and see how you can save with Prevu’s Smart Buyer Rebate.
