5 steps to buying a house in Texas

Purchasing a home is a major decision. Unlike tenants who make monthly rent payments, homeowners are responsible for any repairs, upgrades, and renovations they wish to make on a property, and additional costs like insurance and local property taxes can take first-time buyers by surprise.

In 2020, more than 393,100 homes were sold in Texas, an increase of nearly 10 percent from 2019. Despite 2020’s economic shutdown due to COVID-19, nearly $38 billion was spent on constructing new homes for the single-family market. Single-family private construction value also increased nearly 14 percent. 

Are you ready to purchase a home in Texas?

Before purchasing a home, buyers should assess their budget and how long they’re planning to stay in the area. The average price of a home in Texas ranges from $224,500 to $339,900. In 2019, the state’s median home price increased by nearly 8 percent, with a significant percent of growth taking place in central Texas near Austin and San Antonio. 

Along with a down payment, closing costs, broker fees, appraisal fees, and mortgage origination fees can add 2-5 percent of the loan’s total to the overall cost. 

Requirements

Federal Housing Administration (FHA) loans are often popular among first-time homebuyers with credit scores around 580. Ideally, adults should have credit scores of at least 620 and debt-to-income ratios that fall between 28 percent and 31 percent. Putting down at least 20 percent of the overall property value can also lead to a lower interest rate. However, there are options available for buyers who are unable to make down payments of at least 20 percent, have low credit scores, or high debt-to-income ratios.

1. Get Pre-approved

During the mortgage pre-approval process, you’ll be asked to submit an application with your personal information. Lenders may verify this data by calling your current employer to check your work history, authenticating your current assets, and contacting any of the three credit reporting agencies (TransUnion, Equifax, and Experian) to assess your credit score.

2. Begin Looking for a Home

There are many ways to search for your dream home. Many people begin their searches online to familiarize themselves with the current market and explore different neighborhoods. The next step is to hire a real estate agent to help them narrow down their choices.

Anyone searching for a home should identify the ideal features they’re looking for by making a list of important qualities and showing it to their real estate agent or keeping it nearby while browsing online. 

They should consider the overall cost, size (square footage, number of bedrooms and bathrooms), overall condition, any possible repairs or renovations, location, neighborhood, school district, property taxes, size of the front yard and backyard, and more. It’s important to remain patient during this process. You may need to look at several homes before deciding to purchase one.

3. Make an Offer

When you’ve chosen your ideal home, submit an offer in writing with your desired price, an earnest money deposit (1-2 percent of its total cost), and a deadline for the seller to respond. If you’ve hired a real estate agent, they will typically do this for you. 

Don’t be afraid to walk away if the seller is unwilling to negotiate to the price you want. There are many available homes to choose from, and sticking to a price you can afford will save you from financial headaches in the future. 

4. Get a Home Inspection and Appraisal

A certified inspector will look for any electrical, roofing, appliance, or structural issues that a home may have. You will receive a list of these problems, and any major drawbacks should be addressed with the seller before closing. Buyers can ask for a price discount if multiple repairs are needed, or the seller can fix the issues or cover some closing costs. 

A home appraisal is just as important as an inspection and is required before receiving a mortgage loan. This will assess the current value of the property. Buyers should always conduct a final walkthrough to make sure any agreed-upon issues have been resolved by the seller and that nothing was overlooked.

5. Closing 

During a closing meeting, a buyer should bring a valid form of ID, proof of funds, and any other necessary documentation. Before signing, they will be asked to carefully read over the closing disclosure, verifying the loan estimate and settlement statement before signing the mortgage note and deed. 

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HOME OWNERS FYI FIRE ALARM RECALL

 

-- NOTICE! --

Honeywell Recalls System Sensor L-Series Low Frequency Fire Alarm Sounders and Strobes Due to Risk of Failure to Alert Consumers to a Fire

https://www.cpsc.gov/Recalls/2024/Honeywell-Recalls-System-Sensor-L-Series-Low-Frequency-Fire-Alarm-Sounders-and-Strobes-Due-to-Risk-of-Failure-to-Alert-Consumers-to-a-Fire

Name of Product:
System Sensor L-series low frequency Sounders and Strobes for residential apartments and commercial buildings
Hazard:
The sounders and strobes can malfunction and cause the fire alarm system to fail to alert consumers of a fire.

Remedy:
Replace
Recall Date:
March 14, 2024
Units:
About 29,000

Consumer Contact
System Sensor at 800-736-7672 from 7 a.m. to 4:30 p.m. CT Monday through Friday, email at LFSounder.recall@systemsensor.com, or online at https://buildings.honeywell.com/us/en/brands/our-brands/system-sensor/resources/recall or www.SystemSensor.com and click on "Recall" at the top of the page for more information.

Recall Details
Description:
This recall involves all Honeywell System Sounder L-series Low Frequency Sounders, Sounder Strobes, and Compact Sounders. The sounder and strobes are square, with white and red plastic housings, listed for wall mounting and measure about 5.6 by 4.7 inches for the sounders and strobes and about 5.3 by 3.5 inches for the compact sounder. The model number, date codes and "System Sensor" are printed on the product label and carton. Date codes 3034 and 3035 and the following models are included in this recall:  HWL-LF, HWL-LF-BP10, HRL-LF, HRL-LF-BP10, HGWL-LF-BP10, P2WL-LF.

Remedy:
Consumers should contact the firm to arrange for a free inspection and free repair.

Incidents/Injuries:
Honeywell has received two reports of low or no sound output during installation. No injuries have been reported.

Sold At:
Honeywell authorized System Sensor installers and fire equipment distributors nationwide from March 2023 through April 2023 for about $107.
Manufacturer(s):
Honeywell International Inc., of Charlotte, North Carolina and System Sensor, of St. Charles, Illinois
Manufactured In:
Mexico
Recall number:
24-158

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REAL ESTATE latest weekly market update reports for Wise county

Below are the latest weekly market update reports for Wise county

for your review and use in your sales and marketing efforts.

Also available are Collin, Cooke, Dallas, Denton, Ellis, Grayson, Hood, 

Hunt, Johnson, Kaufman, Navarro, Parker, Rockwall, and Tarrant.

Please let me know if you would like to see those numbers.

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Recent Study Finds That Price Is Becoming More Important Than Location to Home (Spoiler Alert: Both Matter!)

 

IT STILL IS ...

LOCATION, LOCATION, LOCATION

You’ve likely heard that the three most important things to consider when buying real estate are:

• Location
• Location
• Location

It’s a catchy phrase that’s been thrown around for many decades, which might make you feel like it should matter more than anything else when you’re in the market to buy a house.

There’s no denying that location does matter. The location of a house you buy will affect the future appreciation, resale value, and your ability to resell it when the time comes, so it’s certainly an aspect you should give some thought to.

However, a recent study is making headlines claiming that the majority of buyers now think price is more important than location.

Are the tides changing? Is this the new normal? Does this mean you should disregard location and buy the lowest price house you can?

Location Still Matters, and Always Will

As is often the case, headlines can be a bit misleading. The recent study found that 56% of people surveyed felt that price was more important than location. If you dig a little deeper into the results, 60% of women feel this way, versus 48% of men. That’s a lot closer to half of buyers than it is the majority, as the headlines suggest, so the old adage isn’t being entirely thrown to the curb.

Location certainly still matters and always will, regardless of the overall real estate market, or area you’re particularly looking in.

For example, if there were two identical houses for sale, one on a quiet street in a neighborhood, and one on a main road, the one on the main road isn’t going to sell for as much as the one in the neighborhood.

On the other hand, let’s say that the same house on the main road is on the market at the same time as another identical house which is also on a main road, but happens to back up to train tracks and high voltage power lines. Now the house on the main road in the original example is likely seen as the “better” location and would sell for a higher price than the one.

While more buyers surveyed may be price-sensitive, that doesn’t mean location doesn’t matter.

Location matters to different people in different ways, depending on what makes them tick, and how much their budget happens to be.

Regardless of their budget, location matters more to some people. For instance:

• Some people would rather pay more for a smaller house that needs some updating in order to live on a quiet street, because they wouldn’t enjoy or feel at home if they lived near train tracks or on a main road.
• Others will spend every penny they can afford in order to have the most prestigious location to impress their friends and family.
• Some choose to buy a house in a better location because they’re more concerned about better appreciation and being able to sell their house more quickly and easily when the time comes.
• Or perhaps they’d rather pay a premium in order to cut down on their commute time to work.

On the other hand, other buyers might be more focused on getting the lowest priced home they can, either to save money, or because their budget is limited. But that doesn’t mean they can’t get a nice house or location… or even a combination of the two! Here are a few ways focusing on price might make more sense for a buyer:

• If you aren’t handy or don’t have the money to fix a place up, you might be better off buying a nicer house in a less desirable location.
• If living on a main road, or near something other people feel detracts from a home’s value doesn’t bother you, then you’re in luck and can benefit from lower priced homes. No need to buy a house in what would be considered a better location by other people if it doesn’t matter to you!
• If you need a bigger house or the most space you can get on your budget, you can often get a bigger house for the dollar in a location that isn’t as desirable as others.
• Or if you can tolerate a longer commute, perhaps living further away from work is a great way to get a combination of a nicer house in a better location of a town, by moving to a more distant town altogether.

Price and location are always part of the decision for a buyer, but which is more important depends upon your personal wants, needs, and situation.

Don’t feel you need to pay more than you want to (or can afford) just to get a “better” location. But also remember that location is an important factor in the valuation of homes — and how easily you can sell it in the future — so keep that in mind when making decisions based solely on price. That being said, every house has a buyer… at the right price! So no matter what house you buy, there will be a buyer for it in the future, as long as you price it accordingly.

The Takeaway:

A recent study is making headlines claiming that the majority of buyers now think price is more important than location. But if you dig into the data, only 56% claimed that price mattered more.

Location still matters, and always will. It’s not an all-or-nothing deal; both factors play a role.

Price might sway you if you’re budget-conscious or prioritize space over locale. Yet, don’t dismiss location entirely; it impacts resale value and your daily happiness. Balance your needs, wants, and budget, and remember, no matter what house you buy or where it’s located, there will be a buyer for it in the future, as long as you price it accordingly.buyers. (Spoiler Alert: Both Matter!)

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NAR recently announced a settlement to resolve claims arising from home sellers related to broker commissions Texas TX

 

As you may know, NAR recently announced a settlement to resolve claims arising from home sellers related to broker commissions. In settling these lawsuits, NAR has agreed to exclude information relating to compensation within the multiple listing service. In addition, the settlement requires MLS participants working with buyers to have representation agreements in place. The settlement preserves the choices consumers have regarding real estate services and compensation. 

 

According to NAR, this settlement would mean the end of lawsuits with these types of claims filed across the nation if approved by the courts.

 

In its press release, NAR stated, “Two critical achievements of this resolution are the release of most NAR members and many industry stakeholders from liability in these matters and the fact that cooperative compensation remains a choice for consumers when buying or selling a home. NAR also secured in the agreement a mechanism for nearly all brokerage entities that had a residential transaction volume in 2022 that exceeded $2 billion and MLSs not wholly owned by REALTOR® associations to obtain releases efficiently if they choose to use it.”

 

Texas REALTORS is actively engaged in determining how this will affect those named in lawsuits filed in Texas. We are hopeful that this settlement will mark the end of what otherwise may have stretched into years-long litigation. We will keep you updated as new information becomes available. 

Here's a monthly local update based on homes in 76234

 

D

DECATUR TEXAS TX $417,976 Typical home value $409,992 Typical value 1-year ago  0.7% 1-Year forecasted value increase 278 Homes for sale 24 Homes recently sold

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Well, well, well… What do we have here? LITERALLY A WATER WELL

 

Family shocked after discovering ‘mystery’

20-foot well beneath their home

A family in the UK was renovating their kitchen recently, and discovered a hidden 22-foot deep well

 underneath their property. The home has been in the family for generations, yet nobody knows when the well was originally built or closed off. They thought about using the well as their main water source, but decided against it when they were told it would cost over $6,000, so they incorporated it into their kitchen design by topping it with glass, and adding some lighting so people could see into it as they walk over it.

While their young son enjoys walking over the enclosed hole, guests are often freaked out by the "Silence Of The Lambs" vibe it gives off, and steer clear of it.

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Economists: Rate Cuts Will Help Commercial Recovery

The Federal Reserve is factoring rent growth into its inflation measurements, which will influence when it decides to lower rates.

© xavierarnau - E+/Getty Images

The commercial real estate market has a lot to gain if the Federal Reserve follows through on anticipated interest rate cuts this year. It was under high interest rates that the number of commercial transactions dropped by 60% in 2023 compared to 2021, National Association of REALTORS® Chief Economist Lawrence Yun said Thursday at the association’s quarterly Real Estate Forecast Summit

(link is external). Lower interest rates would mean recovery for the industry and collateral value, as well as more transactions and leasing activity.

The Federal Reserve will base the timing of interest rate cuts on certain data points. One of those points is consumer price inflation, which is currently at 3.1%. The goal is to be at 2% or a little lower. “You may scratch your head and ask, ‘Aren’t 3% and 2% pretty much the same?’” said Yun. But in economics, 2% is preferable to 3%, he added.

Despite the need to hit the 2% mark, Yun said he anticipates these progress markers:

• The Fed is likely to make four to six rate cuts over the next couple of years. “Whatever doesn’t happen this year will simply be extended to next year. Inflation will be much calmer later this year and as we go into 2025,” Yun said.
• The 10-year Treasury yield is likely to settle at 3.5%.
• Commercial property prices are likely to stabilize and recover, though challenges remain in the office sector.
• Moderate growth in the GDP is likely to still add to net leasing and investment sales.
• Land and single-family development likely will do well.  

Economists and the Fed are analyzing rents as a key data point in the ongoing interest rate evaluation, Yun said. Much of the data indicates that rents aren’t rising to the degree the Consumer Price Index is showing. Using a different data set could influence monetary policy, and commercial real estate depends greatly on the path of monetary policy. “Measurements of how rents are growing is a key input into how we measure inflation,” said Igor Popov, chief economist at Apartment List. “And, of course, how we measure inflation is key to determining what the Federal Reserve will do next.”

The CPI data comes from the Bureau of Labor Statistics, which measures what Americans are paying for rent. But when the price of rent spikes and then cools, renters don’t feel it until they renew their lease or move—and that takes time. Popov said his company’s research has shown a lag between the CPI’s rent estimates and what’s actually happening in the market. “We know that market rent growth peaked almost six quarters ago. It takes time—we now estimate it takes about six quarters—for most of the rent deceleration growth to factor into the CPI,” he said.

In analyzing rent growth in metro areas, Apartment List identified the Sun Belt as the U.S. region where rents are declining the fastest. Austin, Texas, is leading the way, followed by Atlanta; Jacksonville, Fla.; and Raleigh, N.C. These cities also are seeing job growth and attracting renters as residents.

The big story here is supply, Popov said. The Sun Belt has a large number of multifamily units coming on the market, causing significant pricing pressure. Those areas are coming down from their peaks, as renters have greater options with new lease-ups coming to market. So, these metros aren’t becoming less popular among renters or seeing lower job growth than other places. They’re giving renters more options and reducing rents.

On the other hand, Midwestern markets dominate the list of metros with the fastest growing rents: places like Grand Rapids, Mich.; Milwaukee; St. Louis; and Louisville, Ky.

Vacancy rates continue to grow in the multifamily sector, Popov said. “In our national vacancy index, we’ve seen vacancy rise and, conversely, occupancy fall consistently for the past 28 months. At the end of the 2021 boom, there were very few chairs left in the game of multifamily musical chairs. But the market has continued to ease.”

Nearly 1 million multifamily units are under construction today. Popov’s company expects more than half of them to hit the market in 2024. This will continue to put downward price pressure on rents, he said.

By: Lynn Ettinger

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💧 Save the Date for the Water for Texas 2025 conference! 💧

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If you haven't already, mark your calendars for January 27-28, 2025, to attend the Water for Texas 2025 conference in Austin. The conference website is now live, so you can view last year's highlight video and learn about the venue. Please check back often for new announcements about registration, sessions, speakers, sponsorship opportunities, and more. We look forward to seeing you in January! https://bit.ly/txwater2025

#WaterforTX2025 #TxWater #WaterforTexas #WaterConference #SavetheDate