FAQ
Straight answers to common questions
Buying, selling or owning a home in Texas comes with questions. Here are the ones we hear most. If yours is not here, just call us.
Buying a home
How much do I need for a down payment?
Many conventional loans allow as little as 3% to 5% down, FHA loans allow 3.5%, and VA and USDA loans can allow zero down for buyers who qualify. Putting 20% down avoids private mortgage insurance on a conventional loan.
What are earnest money and the option fee?
In Texas, the option fee is paid to the seller for the right to back out for any reason during the option period, usually a few days. Earnest money shows the seller you are serious. It is held by the title company and credited toward your purchase at closing.
How long does it take to buy a home?
Most financed purchases close about 30 to 45 days after your offer is accepted. Cash purchases can close faster.
How is my agent paid as a buyer?
Buyers now sign a written buyer representation agreement before touring homes. It spells out how your agent is paid. In many sales the seller still covers some or all of it, and we walk you through your options before you sign anything.
Selling a home
How do you price my home?
We compare your home to recent sales of similar homes nearby, then adjust for condition, updates and the current market. You can request a free home value report any time.
What does it cost to sell?
Typical costs include the real estate commission, the buyer's owner's title policy (customarily paid by the seller in Texas), prorated property taxes and any repairs or concessions you agree to. We give you a net sheet so you know what you will walk away with.
What do I have to disclose?
Most Texas sellers must complete a Seller's Disclosure Notice describing the condition of the home and any known problems. Honest disclosure protects you after closing.
Owning a home in Texas
What is the homestead exemption?
If the home is your primary residence, you can apply for a homestead exemption with your county appraisal district. It lowers the taxable value of your home for school taxes and can save you real money every year.
Why are Texas property taxes so high?
Texas has no state income tax, so cities, counties and school districts rely on property taxes. Combined rates in the DFW area often run about 1.5% to 2.6% of a home's taxable value.
What is an REO property?
An REO, or real estate owned property, is a home a lender took back through foreclosure. They are usually sold as is. Our REO specialist Mauro Gonzalez handles these every day.