Buying a home is always a big decision — and if you’re considering putting down roots in Texas, there are some unique factors you’ll want to understand before making your move. From property taxes to weather considerations, Texas real estate has its own set of rules and opportunities.
Here are the five most important things to know before buying a home in Texas:
1. Property Taxes Work Differently Here
Texas is one of the few states with no state income tax — but that means property taxes are higher than the national average. Depending on the county, you could be looking at 1.5% to 3.5% of your home’s value each year.
💡 Tip: Before you buy, research the county’s property tax rate and factor it into your monthly budget. Don’t forget about potential homeowner association (HOA) fees if you’re buying in a planned community.
2. Homestead Exemption Can Save You Money
The Texas Homestead Exemption is a big perk for homeowners. Once you declare your primary residence as your homestead, you can reduce the taxable value of your property — often saving hundreds, if not thousands, of dollars each year.
💡 Tip: File for your exemption as soon as you close on your home. Many buyers forget this step, but it’s one of the easiest ways to cut housing costs.
3. Be Prepared for Texas Weather
Texas weather can be unpredictable — from blazing hot summers to spring thunderstorms, and in some areas, hurricanes or tornadoes. Homebuyers should pay attention to:
- Flood zones: Some neighborhoods require flood insurance, which can significantly affect your monthly costs.
- Energy efficiency: Homes with good insulation, modern windows, and energy-efficient AC systems can save you a lot during the summer.
💡 Tip: Always request a seller’s disclosure and review past utility bills before making an offer.
4. The Market Moves Fast (Especially in Hot Spots)
Cities like Austin, Dallas-Fort Worth, Houston, and San Antonio continue to attract new residents, which means homes can sell quickly. In competitive neighborhoods, you might need to act fast and come in with a strong offer.
💡 Tip: Get pre-approved for a mortgage before you start shopping. This shows sellers you’re serious and ready to move quickly.
5. Location Matters More Than Ever
In Texas, location impacts more than just your commute. School districts, access to highways, and even proximity to major employers can drastically affect property value.
💡 Tip: Think about your long-term plans. Even if you don’t have kids, buying in a strong school district can increase resale value down the line.