Answers to common questions about buying and selling a home in Texas
How do Texas property taxes work, and when should I file my homestead exemption?
Texas has no state income tax, so local services are funded mostly by property taxes from the county, city, school district and any special districts. Once you own and live in the home as your primary residence, file a homestead exemption with your county appraisal district. The school district exemption is currently $140,000 off your home's taxable value, with an additional amount for homeowners 65 and older or with a disability. The standard deadline is April 30, and late applications are accepted for up to two years. We walk every buyer through this after closing.
What is the 10% homestead cap?
Once your homestead exemption is in place, the taxable value of your home can't rise more than 10% a year, even if the market value rises faster. It's one more reason to file as soon as you move in.
What's the difference between a MUD and a PID?
Both pay for roads, water, sewer and other infrastructure in newer communities, and both add a line to your tax bill. A MUD (Municipal Utility District) charges a tax rate that stays with the property until the district's bonds are paid off. A PID (Public Improvement District) charges an assessment that can often be paid off early. Before you make an offer, we'll show you what either one adds to your monthly payment.
Should I protest my appraisal?
Often, yes. Appraisal districts mail value notices in the spring, and the protest deadline is usually May 15 or 30 days after your notice, whichever is later. We can pull recent comparable sales to support your protest.
How does the Texas option period work?
When your offer is accepted, you pay the seller a small option fee for a set number of days. During that time you can back out for any reason. That's when you do inspections and negotiate repairs, so the number of days matters.
Who pays closing costs in Texas?
Sellers usually pay for the buyer's owner's title policy and their own agent fees. Buyers usually pay lender costs, prepaid items and escrow. All of it is negotiable, and we'll give you an estimate before you sign anything.
What should I know about foundations and roofs in North Texas?
Our clay soil expands and shrinks with moisture, so foundation movement is common and worth a close look. Hail is common too, which affects roof age, insurance deductibles and premiums. We recommend a full inspection, plus a foundation or roof specialist whenever the inspector flags something.
Should I use my own agent when buying new construction?
Yes. The builder's sales rep works for the builder. Your agent can negotiate incentives, compare builders and lot premiums, review the contract and attend key inspections. In most cases this costs you nothing extra, but register your agent with the builder on your first visit.
Do I need flood insurance?
If a home is in a FEMA flood zone and you have a mortgage, your lender will require it. Homes outside flood zones can still flood, and coverage there is often inexpensive. We check the flood map for every home we show you.