Are you thinking of buying a home in Austin, TX? If so, you're in for a great experience! The Austin real estate market is booming, and there are plenty of properties to choose from. In fact, forecasters are saying that in the next year, we'll see a big shift in Austin going from a seller's market to a buyer's market!
In this buyer's guide, we will teach you everything you need to know about buying a home in Austin, Texas. We'll cover topics such as the buying process, mortgages, property taxes, and more! So whether you're just getting started or are ready to make an offer on your dream home, this guide has you covered.
All About the Austin Real Estate Market in 2022
The Austin real estate market is hot right now! Prices have been steadily rising for the past few years, and they are predicted to continue to rise into next year. This is good news if you're looking to sell your home, but it can make buying a home more difficult.
However, there are still plenty of homes on the market, so don't despair! With a little bit of research and patience, you'll be able to find the perfect home for you and your family.
And forecasters are predicting that while prices will remain high into next year, availability and pricing should mean that sellers will be more willing to accept reasonable offers than in the past few years.
What to Know About Texas Property Taxes
One of the things to be aware of when buying a home in Austin or anywhere in Texas are the higher property taxes. In fact, Texas has some of the highest property taxes in the country!
This is because the state does not levy an income tax. However, while property taxes have been on the rise, we're likely to see that slow down in the coming years.
How the Home Buying Process Works
The home-buying process can seem daunting, but we're here to help!
The first step is to get pre-approved for a mortgage. This will give you an idea of how much house you can afford and what your monthly payments will be.
Once you've been pre-approved, it's time to start looking for homes! You can search online, work with an Austin real estate agent, or drive around neighborhoods that interest you.
Finding a Home
The first step to finding a home in a hot market is making sure you know what's available. Working with an experienced local real estate agent to set up a search that will send new listings straight to your inbox. That way, you'll be one of the first to see homes as they hit the market, giving you a leg up on other buyers.
Visit neighborhoods ahead of time to get a feel for what you like and what you might not. Austin's housing market is still competitive, so you don't want to waste time looking in places that aren't for you.
Making an Offer
Once you've found a home you love, it's time to make an offer! The seller will then either accept or reject your offer. If they accept, congrats, you're one step closer to buying your new home!
Although the past few years have seen cash buyers inflating offers and driving buying prices up, the expectation is that if you're looking for a house in Austin in the next year, you can anticipate paying close to asking.
What to Expect
In a seller's market, you can expect homes to go under contract very quickly - sometimes within days of hitting the market. This means that you must be prepared to move fast when finding a home you love. Have your financing in order, and be ready to make an offer as soon as you find a home you're interested in.
Although we anticipate the market to shift toward being more of a buyer's market next year, it still makes sense to contact a local lender and get find out what loan programs you're eligible for. FHA loans and VA loans have different terms and eligibility. Will you be buying a home with one of these programs or a conventional loan?
Finding a Mortgage Lender
If you're looking to buy a home in Texas, you'll need to find a mortgage lender. There are many different lenders to choose from, so it's important to compare rates and terms before making a decision.
You can use an online mortgage calculator to get an idea of what your monthly payments will be. Whether you're a first-time homebuyer or you've owned homes before, an experienced lender can make a big difference.
At Texas United Mortgage, you'll be assigned a personal loan officer to work with you on your home purchase. We work hard to get the best rates and terms.
We'll work with you to help you understand the home-buying process, including homebuyer assistance programs, and how things like your down payment and private mortgage insurance will impact your monthly mortgage payment.
Finding a Real Estate Agent
If you're buying a home in Austin's competitive market, you'll be best served by finding an experienced real estate agent. A good real estate agent will be familiar with the Austin market and will be able to help you find the perfect home for you and your family.
They will also be able to negotiate on your behalf and help you through the buying process.
- Get pre-approved for a mortgage before you start looking for homes. This will give you an idea of how much house you can afford.
- Texas has some of the lowest property taxes in the country, so don't forget to factor that into your budget!
- The home-buying process can seem daunting, but a good real estate agent will be able to help you every step of the way.