If you’re looking to buy property in the Lonestar State, there are a few key strategies you should know to maximize your savings. It’s important to know the right time of year to buy, where to buy, and other key marketing techniques to avoid overpaying on a home. Learn more in this helpful guide.
Buying a house is a stressful and emotional process. You'll likely have to spend weeks touring properties, fill out hundreds of forms, and invest a large chunk of your savings to secure the right house.
One way to make buying a house easier is starting the process at the right time. In Texas, housing inventory, mortgage rates, and market trends vary from month to month.
For example, this year listing prices for homes in Texas were lowest in January. On average, homes were $31,176 less expensive. While in October — the month with the highest prices — the listing prices were $23,038 more than the annual average.
In truth, the best time to buy a house really depends on your priorities and situation. Read on to find out which time of year will give you the most options and the biggest savings when buying a house in Texas.
Best Month For
7.1% lower than average
16.1% more homes to choose from
2.93% interest for 30-year mortgage
Realtor.com data (October 2020)
Bankrate data (December 2020)
If you're interested in buying a home, the first step in the home buying journey is getting preapproved by a licensed lender. Even if you’re already pre-approved, shopping around for lower rates can pay dividends over the life of the loan.
You can fill out the form below to be instantly matched with a licensed lender who knows the area and can guide you through the process.
The Best Time of Year to Buy in Texas
Throughout the country, the most affordable time of year to purchase real estate is normally in the winter when buyers are scarce. As a result, sellers often lower their prices or negotiate down from listing prices. Springtime generally sees the most competition among buyers and is typically when the largest number of homes are on the market, driving up sales prices.
In Texas, the local real estate market is fairly cool, despite the increase in overall home prices. Since 2018, home values have increased by 8% and are predicted to increase by another 5.1% before the end of 2019. The median home value right now is $196k and values are expected to hit $206k by late winter of 2020. Mortgage rates are also expected to increase.
Texas falls in line with the rest of the country, with typical home prices dropping from late fall to early winter. Springtime can also be the worst time to buy a home since high buyer competition leads to higher home prices. However, it’s worth noting that since Texas is such a large and diverse state, real estate trends can vary greatly across specific city markets.
The Best Places to Buy a Home in Texas
Now that you know the best time to buy, you might be wondering which area in Texas is the best place to call home. Here are five of the top-rated neighborhoods in Texas that you should explore before buying.
1. Canyon Creek South
This popular suburb in Richardson, Texas is home to 4k residents and is rated the number one place to live in the Lone Star State. With A+ school systems, access to a good selection of restaurants and bars, and great parks and outdoor amenities for families, this suburb is the perfect place to call home.
Average Home Values - $346k
2. Wilshire Heights
This small urban neighborhood in Dallas is an excellent place to reside, with just under 2k residents. Public schools are good, access to restaurants and nightlife is top-notch, and this area is home to many young professionals and families with children.
Average Home Values - $461k
Located in Plano, Texas, Timberbrook is home to just under 6k residents and has great public schools. This suburb has a good selection of restaurants, bars, and coffee shops, while providing great access to a variety of family-friendly activities.
Average Home Values - $291k
4. White Rock Valley
Another neighborhood in Dallas, this suburb is home to just shy of 9k Texans and has good public schooling. Many families and retirees live here, enjoying the good mix of restaurants, coffee houses, and parks.
Average Home Values - $370k
5. Owens Park
Nestled in Richardson, Texas, this suburban neighborhood boasts excellent public schools and is home to just over 1k Texans. Residents have good access to restaurants, nightlife, coffee houses, and parks, and are a mix of families and young professionals.
Average Home Values - $236k
4 Ways to Get a Great Deal On a Home in Texas
Now that you know where and when to buy a home in the Lone Star State, you want to find some helpful real estate tactics to help you minimize the overall price you pay for your new home. These four methods will help you save the most amount of money during the buying process.
Find a Great Texas Real Estate Agent
There’s no better way to maximize savings than by partnering with a local real estate agent. Agents understand local markets inside and out and can provide valuable insights during the buying process. Agents can make even make specific recommendations on the best streets to live and can offer great tactics for getting the best price on your home.
Learn More: What Does a Real Estate Agent Do for a Buyer?
Assess Your Needs and Lay Out Your Goals
Every buyer has different needs and wants when it comes to finding the perfect home. Working with an agent is the best way to ensure the homes you view check off all of your required boxes, so you don’t waste your time falling in love with a place that won’t quite work. Your agent can even create a search to email these homes directly to you, so you can browse at your convenience.
Since agents have access to the MLS, they also see homes that hit the market before popular listing sites. This allows buyers a competitive advantage to make an offer on homes before other buyers have the opportunity to view them.
Find a Lender and Secure Financing
Unless you plan to buy your home with cash, you'll need to apply for a mortgage. For most home buyers in Texas, interest rates are among the biggest factors when choosing a lender. Doing a little upfront research and comparing options to find the best rates could save you tens of thousands of dollars over the life of your loan.
For example, in Texas a typical house is worth $224,000. Assuming a 20% down payment, if you took out a 30-year mortgage for 3.5%, your monthly payment would be $799. But if you shopped around and found a 3% mortgage, your monthly payment would drop to about $756.
Getting a mortgage is a big decision – and it pays to shop around! Keep shopping until you find a lender with competitive rates who also understands your goals. Don’t get pressured into taking on a bigger loan than you’re comfortable with – work with a lender who explains what you’re really signing up for.
It’s easy to start your home buying journey – answer a few questions to get instantly matched with a lender who works in your area.
Negotiate for the Best Possible Price
Deciding the right amount to offer a seller can be stressful if you aren’t familiar with the local market. Your agent can help you determine the right amount to offer in order to win your dream home, without overspending. They’ll also negotiate with the listing agent on your behalf to ensure you receive a fair deal.
After inspection, your agent will also work with you to determine how to negotiate repairs or costs with the seller.
If you’re ready to start looking for your new home in the great state of Texas, get connected with a full-service Clever Partner Agent. Clever has agents in every major U.S. city who will provide you with on-demand showings, to ensure you view homes quickly.
You can get started by filling out this online form and a Clever representative will be in touch to connect you with your local full-service agent.