The Texas real estate market in 2026 is more nuanced than ever. Whether you are a first-time buyer or a seasoned homeowner, these smart buying tips will help you navigate the market confidently, avoid costly mistakes, and secure the best possible deal on your next property.
1. Get Your Financing Right Before You Start Looking
This might seem obvious, but too many buyers start viewing homes before they truly understand their budget. Getting pre-approved (not just pre-qualified) accomplishes several things: it tells you exactly how much you can borrow, it strengthens your offers, and it identifies any credit issues early enough to address them.
In 2026's market, compare at least three lenders. Mortgage brokers can shop multiple wholesale lenders on your behalf, but also get quotes from a direct lender (like a bank or credit union) and an online lender. Even a 0.25% difference in rate on a $350,000 loan saves over $18,000 in interest over 30 years.
2. Understand the True Cost of Homeownership in Texas
Your mortgage payment is just the beginning. Texas homeownership costs include several expenses that can catch buyers off guard:
| Expense | Monthly Estimate | Annual Estimate |
|---|---|---|
| Mortgage P&I ($350K, 6.5%, 30yr) | $1,770 | $21,240 |
| Property Tax (2% avg) | $583 | $7,000 |
| Homeowner's Insurance | $150 | $1,800 |
| Maintenance (1% rule) | $292 | $3,500 |
| HOA (if applicable) | $100 | $1,200 |
| Flood Insurance (if applicable) | $80 | $960 |
| Total | $2,975 | $35,700 |
3. Work With a Buyer's Agent Who Knows the Local Market
In Texas, the seller typically pays both agents' commissions, so having professional representation costs you nothing directly. A good buyer's agent provides:
- Access to MLS listings as soon as they hit the market (or before, through broker networks)
- Comparative market analysis to ensure you do not overpay
- Skilled negotiation on price, repairs, and closing costs
- Knowledge of TREC contract provisions that protect your interests
- Connections to reliable inspectors, lenders, and title companies
- Guidance through the entire process from offer to closing
4. Do Not Skip the Option Period Inspections
Texas offers buyers a unique protection called the "option period." For a small fee ($100-$500), you get the unrestricted right to terminate the contract during this period (typically 7-10 days) for any reason whatsoever. Use this time wisely:
- General Home Inspection ($300-$500): Non-negotiable. Covers structure, electrical, plumbing, HVAC, roof, and more
- Foundation Inspection ($250-$400): Critical in Texas due to expansive clay soil. A structural engineer's report is worth every penny
- Termite/Pest Inspection ($75-$150): Texas is prime territory for termites, especially in humid areas
- Sewer Scope ($150-$300): Camera inspection of sewer lines. Especially important for homes over 20 years old
- Roof Inspection: Texas weather (hail, wind, heat) is tough on roofs. Know the remaining useful life
5. Negotiate Strategically in the Current Market
The 2026 market has shifted in buyers' favor compared to the frenzy of 2021-2022. Here are negotiation strategies that work in the current environment:
- Request Seller Concessions: Ask the seller to pay a portion of your closing costs (up to 3-6% depending on loan type). This preserves your cash reserves
- Negotiate a Rate Buydown: A 2-1 temporary buydown or permanent rate buydown paid by the seller can save you thousands in the early years of your mortgage
- Ask for Home Warranty: A one-year home warranty ($400-$600) covers major systems and appliances. Most sellers will include this
- Use Days on Market: If a home has been listed for 30+ days, the seller is likely more motivated. Offer below asking with confidence
- Leverage Inspection Findings: Request repairs or credits based on inspection results. Focus on safety issues and major systems
6. Think Long-Term: Location, Location, Location
When choosing a home, prioritize factors that drive long-term value appreciation:
- School Districts: Homes in top-rated school districts in Texas appreciate 20-30% more over 10 years
- Employment Centers: Proximity to major employers and job growth areas
- Infrastructure: Planned highways, transit lines, and commercial development
- Flood Risk: Avoid flood-prone areas unless the price adequately compensates for risk and insurance costs
- Lot Size and Features: Corner lots, cul-de-sacs, and lots backing to green space command premiums
7. Plan for Property Taxes and Protest Annually
Texas property taxes are among the highest in the nation, but you have the right to protest your property tax valuation every year. The protest deadline is typically May 15 or 30 days after you receive your appraisal notice. Many homeowners save $500-$2,000+ annually by protesting. You can do it yourself or hire a property tax protest company that works on contingency (they only get paid if they save you money).
8. Do Not Forget About the Closing Process
In the final weeks before closing, stay disciplined:
- Do not change jobs, quit your job, or become self-employed
- Do not make large purchases on credit (cars, furniture, appliances)
- Do not open or close any credit accounts
- Do not co-sign on anyone else's loan
- Do keep all financial documents organized and respond promptly to lender requests
- Do a final walk-through 24-48 hours before closing to verify condition and negotiated repairs
Ready to Buy Smart?
The Texas real estate market rewards informed buyers. Take advantage of our free calculators and tools to understand your numbers, and contact our team for personalized guidance throughout your home buying journey.