Moving to Dallas? A Few Insights That Will Help
After helping so many people relocate to Texas I quickly discovered a few reoccurring real estate issues almost every new resident encounters. To help newcomers feel a little more comfortable with buying a home in Texas, I decided to write an article that covers a few basic issues.
After helping so many people relocate to Texas I quickly discovered a few reoccurring real estate issues almost every new resident encounters. To help newcomers feel a little more comfortable with buying a home in Texas, I decided to write an article that covers a few basic issues.
Does Size Matter?
Unlike many other states where buyers “take what they can get”, Texas offers many choices when it comes to selecting a home. In fact, I have watched many people struggle because there are too many good homes to choose from. To help narrow it down, one of the first decisions is to prioritize price versus value.
After looking at several homes most people begin to comment on what seems to be an intangible difference from one home to the next. It is often expressed as something like, “I don’t know what it is. It just feels different”. That difference is usually a factor of “finish out” quality. In other words, value builders put more and better quality features in the home, whereas price builders may or may not offer nicer features as an upgrade.
Dallas home builders can easily be categorized as either “price builders” or “value builders”. Price builders specialize in “more home for your money” while value builders focus on better quality.
Repeatedly, I watch my clients deliberate over buying a nice house that offers a great deal of space but has less of a “wow” factor, versus a smaller home where the quality is clearly evident. Inevitably, my clients have to ask themselves, “Do I want more space or better quality?” At the end of the day, it comes down to subjective matters of needs, taste, and budget.
The good news is that there are options for both types of buyers.
National vs. Local Real Estate Market
If you have bought and sold homes in other states, you are probably pretty familiar with the real estate process. There are similar elements in every transaction: obtaining financing, earnest money deposits, negotiations, inspections, closing title or escrow, home style trends, buyer’s market or seller’s market factors, etc. However, there are many other rules and practices that affect every transaction that are much more local in nature. While there are general practices and trends that affect real estate nationally, not all of them apply to buying and selling in Texas. In fact, it can be very different in the same state and even across town.
One of the best ways to prepare for buying a home here is to learn a little about real estate practices in the area you are considering. For example, what is it like in your home town on the following issues?
How much earnest money is required?
Who pays for the title policy?
Do I need an attorney to close on the property?
What if I change my mind? Can I get out and will I lose my earnest money?
What neighborhoods are selling fast or slow?
What are the current trends should you looking for that will help resale?
Do I need to hire an inspector?
As you are looking at homes be sure to ask plenty of questions to know exactly what your responsibilities are.
Prepare for Property Taxes
Perhaps the biggest attraction to Texas is the price of our homes. Compared to other areas of the country Texas home buyers truly get a great home for a low price. However, there is one caveat.
Property taxes in Texas can be expensive. Many of my clients who relocate from areas like California, Arizona, Nevada, and Colorado are used to paying around 1.5% or less (some are less than 1%) of the assessed value for property taxes. Out here, you can expect from 2.3% to just over 3% of the assessed value. Almost double or even triple what you may be used to. That can be quite a shock when you get your tax bill at the end of the year. However, it is not all bad news.
In reality, many of my clients end up paying about the same or less than where they moved from. After all, 1% of $800,000 is more than 2.5% of $300,000.
Keep in mind Texas does not have a state tax. So, even though property taxes may be higher, the State does not dock your paycheck every month.
Furthermore, under House Bill 1, most cities in Texas are under court order to lower property taxes this year and for the next couple years. Along with the homestead exemption, this will add up to significant reductions.
By the way, our property taxes are put to good use. They help fund our education system and keep our roads and public areas well maintained to name a few. You won’t hear too many people complaining about potholes and lack of equipment in our schools.
Author Information
Jeff Wimpy
