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The cost to buy a house in Texas varies quite a bit based on location, sale price, and the terms of your financing. That said, home buyers in Texas typically spend about $24,301 to $87,788 to close on a home.
After paying all the upfront expenses of buying a home, you also need to anticipate the ongoing costs of homeownership. This includes things like your mortgage, but also routine maintenance, utilities, and property taxes.
On the bright side, Clever Real Estate can help you get started off on the right foot. By working with a Clever agent, you'll get top-notch service and may be eligible for cash back after closing.
Average cost to buy a house in Texas
Most of the expenses to buy a house are pretty consistent across states, though Texas does have some that are specific to the area. Here's a general overview of what costs to expect when buying a house in Texas:
Expense | Description | Amount |
|---|---|---|
Earnest money deposit | Good faith money that acts like a security deposit | $3,158 to $9,474 |
Down payment (3.5-20%) | Initial cash investment in the house that determines your equity | $11,054 to $63,163 |
Reserves | Lenders often require enough cash to pay your bills for 2–3 months when buying a home | $2,844 to $4,266 |
Closing costs | Additional expenses that must be paid to close on a house | $5,780 |
Inspection | A certified inspector checks the property for any issues that need to be fixed | $122 |
Appraisal | A qualified appraiser analyzes the property and the local market to determine its fair market value | $93 |
Moving | Although it usually happens after closing, you need to account for the cost to move | $1,250 to $4,890 |
Furnishing | Many homebuyers like to fill their new home with new furniture and appliances | Varies |
Total | $24,301 to $87,788 | |
Note: All numbers are estimates based on Texas averages and a median home value of $315,815. | ||
Specific Texas closing costs
In addition to the standard closing costs, there are also regional differences that impact which expenses are necessary when buying a home.
For example, termite inspections are popular in Texas because these pests are common in the state. Since it's hot in Texas, pools are more common than in northern states, making pool inspections more likely as well.
Texas also has higher-than-average homeowner's insurance rates due to the increased risk of damage from weather such as hurricanes and tornadoes.
For more routine issues like appliance repairs or small prior damage, consider getting a home warranty.
On the bright side, Texas is one of 13 states that has no state transfer tax, which ranges from .05% to 2% of the sale price in states where this applies.
» MORE: How much will you pay for closing costs in Texas?
Average cost to buy a house in major Texas cities
As you might expect, the cost to buy a house in some parts of Texas are substantially higher than others.
Below are the average home prices and cost to buy a home in several Texas cities:
City | Average home value | Average cost to buy |
|---|---|---|
Austin | $557,239 | $40,718 to $149,957 |
Dallas | $390,152 | $29,356 to $106,931 |
El Paso | $200,581 | $16,464 to $58,115 |
San Antonio | $340,674 | $25,991 to $94,190 |
Waco | $257,294 | $20,321 to $72,719 |
Note: The low end of the cost to buy estimate range assumes a down payment of 3.5% and 20% for the high end. | ||
Finding an agent who is an expert in your area is one of the best ways to save money and get a great deal on your next home purchase.
Contact us at Clever for top agent recommendations.
How much do I need to buy a house in Texas?
The two biggest factors in how much cash you need to buy a house are your price point and down payment.
Below is a table outlining the varying amounts of cash you would need for common down payment percentages for a range of price points:
Home price | With 3.5% down payment | With 10% down payment | With 20% down payment |
|---|---|---|---|
$100,000 | $3,500 | $10,000 | $20,000 |
$250,000 | $8,750 | $25,000 | $50,000 |
$500,000 | $17,500 | $50,000 | $100,000 |
$750,000 | $26,250 | $75,000 | $150,000 |
Cost to buy a house in Texas calculator
To get a more accurate number of how much cash you'll need for a particular house with a specific down payment, use our home buyer calculator below.
Ongoing costs of homeownership in Texas
Once you close on a house, you'll be finished with home buying expenses, and you'll transition into paying the ongoing costs of homeownership.
Experts recommend you budget for 1% of your home's value toward annual home maintenance costs, though these vary widely from one year to the next.
» MORE: The true cost of homeownership
Expense | Average monthly cost |
|---|---|
Mortgage (principle and interest) | $1,422 |
Homeowners insurance | $213 |
Taxes | Varies by county, but averages $461 statewide |
Maintenance | $262 |
Utilities | $415 |
Total | $2,773 |
Note: All numbers are estimates based on Texas averages and a median home value of $315,815. | |
Some homes in Texas belong to a homeowner's association, or HOA, which charge a monthly fee as well. The national average for HOA fees is $250 per month, but there are many homes where this doesn't apply.
If your down payment is less than 20%, your lender might also require you to pay for Private mortgage insurance (PMI). This will be added to your monthly mortgage payment and typically costs $137 to $465 per month until you've accrued enough equity.
Top ways to save money when buying a house in Texas
Buying a house is often the biggest financial transaction of a person's life, but there are steps you can take to keep the costs down during this process.
Look into better financing options
A major factor in your monthly housing budget is your mortgage payment — this is generally the largest portion of your ongoing expenses.
Getting the best possible financing will help save you money, either up front, over the long term, or both. In Texas, the average homeowner pays a 30–year fixed mortgage interest rate of 5.42%.
You can compare loans by working with a mortgage broker who will shop around for you.
Get Pre-approved Today!
Get matched with a lender who can tell you how much house you can afford. To get started, where do you plan on buying?
» MORE: Other considerations for saving money when buying a home
Participate in Texas home buyer programs
Texas has a number of programs (e.g., Home for Texas Heroes, Home Sweet Texas) to help with the home buying process. Most of these either come in the form of down payment assistance or more favorable lending terms.
There are also programs that focus on helping specific demographics, such as veterans, people with disabilities, low-income borrowers, and more.
» MORE: A guide to first-time home buyer programs in Texas
Partner with an expert agent offering cash back
Most Texas home buyers are eligible for Clever Cash Back. If you work with a Clever agent, you'll not only get the expertise that helps you get the best deal possible, you could also get some money back after closing!
FAQs
The average home value in Texas is $315,815. This varies considerably from one area to another, however. Austin, for example, is likely to be much more expensive than Brownsville.
For a median-priced home of $315,815, most Texas home buyers spend between $24,301–$87,788 on the down payment, closing costs, and other expenses associated with buying a home. This number can be lowered by making a smaller down payment or working with an agent who offers a buyer rebate. Use a home buying calculator to find out how much you would need to spend in your specific circumstances.
The average monthly cost to own a home in Texas is between $1,489 and $1,817, whereas the monthly cost to rent is $1,497. With homeownership, you get the benefits of appreciation (that is, your home goes up in value) and paying down equity, but you also have to deal with maintenance costs and taxes going up over time. Ultimately, you have to decide if the possibility of appreciation and the control of owning your home is more important than the convenience of renting.