How to Buy a House in Austin: 7 Easy Steps (2025 Update)

Austin attracts buyers nationwide with its booming tech scene and no state income tax. With thousands of homes for sale in Austin, you have plenty of options. But you must get preapproved, check neighborhoods, and attend open houses before buying a house here.

With Houzeo, Austin’s best home buying website, managing your home search is simple. You can look through the latest listings in Austin, save your favorites, schedule showings, and submit offers, all at your fingertips.

👉 Download the Houzeo mobile app to simplify your Austin home search.

7 Steps for Buying a Home in Austin

Buying a home in Austin doesn’t have to be complicated. Whether you’re just starting your search or are already browsing homes for sale in Zilker, these 7 simple steps will help you move forward with confidence:

Step 1: Decide Your Homebuying Purpose

Whether you’re looking for a getaway or seeking an investment, knowing why you’re buying real estate in Austin is essential. It sets your expectations and helps you make smarter choices. Here’s what you should keep in mind:

• Primary Residence vs. Investment: Choose homes in places that fit your lifestyle, whether it’s a vibrant neighborhood like Hyde Park or a suburb like Round Rock. For investment properties, consider homes for sale in East Austin, where tourism drives demand.
• Short-Term or Long-Term: If you plan to live in the house for only a few years, focus on neighborhoods with strong resale value and upward market trends. You can check out homes for sale in South Lamar or Mueller, where the housing market continues to grow.
• Space Requirements: If you’re looking for larger lots or big backyards, consider areas like Brodie Heights or Circle C Ranch. But if you prefer something easier to manage, condos in places like downtown and Westlake Hills can be a smart option.

Step 2: Explore Financing Options

Before making a purchase, it’s important to understand the financing options available for you to make an informed decision. Here’s what you need to do:

1. Prepare Financially

• Check Your Credit Score: Lenders will check your credit score to determine if you’re eligible for a loan. Aim for a score of 500+ for an FHA loan and 620+ for a conventional loan.
• Calculate Your Debt-to-Income (DTI) Ratio: Lenders often use your DTI ratio to assess how much home you can afford. Keep your DTI below 36%, especially if you want a home in high-cost areas like Westlake Hills, Tarrytown, or Downtown Austin.
• Set Your Budget: Ensure your budget includes property taxes, homeowners’ insurance, and potential flood insurance, particularly in areas near waterways or flood zones, like parts of South Austin or along Onion Creek.

👉 Use a Texas mortgage calculator to estimate how much property you can afford.

2. Explore Loans and Assistance Programs

Down payments in Austin usually range between 10% and 20%, but often vary based on the financing option you choose. You can also look for suitable Down Payment Assistance Programs (DPAs) to help you cover part or all of your down payment.

Step 3: Get Pre-Approved for a Mortgage

The Austin housing market is competitive, so get a mortgage pre-approval to show sellers you’re a serious buyer. In fact, 86% of sellers prefer buyers who are pre-approved. It also helps you negotiate better, and reduces delays in the transaction.

Shop around to find the best mortgage lenders—compare their programs, rates and terms. Once you’ve narrowed down your options, get pre-approved by submitting documents like proof of income, credit history, bank statements, and your ID proof.

Step 4: Dive Into the Austin Market

Whether you’re looking at houses for sale in Hyde Park or anywhere else in Austin, here’s how to buy smart:

1. Online Listings: If you’re wondering how to buy a house, starting with online listings is a good first step. Use platforms like Houzeo to search homes for sale by price, zip code, and more. You can also filter for must-haves like a backyard, waterfront view, etc.
2. FSBO (For Sale By Owner) Homes: Explore FSBO listings, as they often offer more flexibility in price negotiations. This is because sellers aren’t paying 5% to 6% in agent fees.

Step 5: Make a Competitive Offer

In Austin’s competitive housing market, homes tend to sell fast. Make sure you focus on real estate comps for a more accurate picture. Here’s a checklist to help you craft a strong offer:

• Seller’s Name and Address: Don’t forget the basics—include the seller’s legal name and property address.
• Price and Terms: Offer a price based on Fair Market Value (FMV) and comparable sales. In high-demand areas, you might need to offer above the asking price to stand out.
• Down Payment: In Austin, down payments usually range from 3% to 20%. In competitive neighborhoods like Westlake Hills or Tarrytown, a larger down payment can strengthen your offer.
• Earnest Money: Boost your earnest money deposit to show you’re serious, especially in hotspots Zilker or Mueller, where homes can go fast.
• Contingencies: Include protections like home inspection, financing, and wind mitigation contingencies. These safeguards protect you from issues like hurricane damage.
• Concessions: Request the seller to cover some closing costs. It’s common to negotiate repairs after the inspection, such as roof issues, HVAC problems, or plumbing leaks.
• Deadline for Seller’s Response: Set a 24- to 72-hour deadline to encourage a prompt reply. This helps prevent delays and keeps you on track for Texas’ average 44-day closing timeline.
• Closing Costs: Expect closing costs around 2% to 5% of the home’s price, including title insurance, property taxes, and lender fees.

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Step 6: Conduct Inspections and Appraisals

A standard home inspection in Texas should cover:

1. HVAC System: Ensure the air conditioning can handle Austin’s heat and humidity. It is essential for year-round comfort.
2. Plumbing: Check for leaks, corrosion, and water pressure issues, especially in homes built before the 1980s. These houses are more vulnerable to damage from humidity.
3. Electrical System: Verify everything is up to code and can withstand storm-related power surges, which are common in Austin.
4. Roof Condition: Check for hail damage, missing shingles, and age-related wear. In Austin’s climate, strong storms, high winds, and intense sun can significantly affect a roof’s lifespan.
5. Foundation and Structure: Look for cracks, moisture, or signs of shifting. The region’s clay soil can lead to foundation movement during dry or rainy seasons.

Make sure to check whether your property is in a flash-flood zone and review local floodplain maps. For older homes, get a foundation and plumbing inspection, since Central Texas’ limestone soils and shifting ground can cause cracks and leaks.

Once the inspection is complete, your lender will order a home appraisal to confirm the property’s market value. This step ensures the loan amount aligns with what the home is actually worth. It can impact final loan approval, especially if the appraisal comes in low.

Step 7: Close on Your Austin Home

Almost there! Closing usually takes 30–45 days, from signing the contract to getting the keys in your hand. Here’s what you can expect:

• Final Walkthrough: Make sure all repairs have been completed, and the home is in the agreed-upon condition.
• Buyer Closing Costs: Expect to pay 2%–5% of the home price. This includes title fees and lender charges, plus prepaid taxes or insurance.

Once you sign the dotted line and transfer the escrow—congratulations, you’re officially a homeowner. Grab those keys and cue your happy dance! 🎉

What Should You Do After Closing?

Welcome home! Now it’s time to handle a few must-dos to protect your investment:

• File for Homestead Exemption: If the home is your primary residence, apply for Austin’s Homestead Exemption to reduce your property taxes.
• Set Up Utilities: Get water, electric, internet, and trash service connected. And don’t forget pest control, especially in humid areas like South Austin and Onion Creek, where bugs are active year-round.
• Get Insurance: Homeowners insurance is required if you’re financing, and flood insurance may be needed in FEMA-designated flood zones. Rates can be higher in flood-prone areas like parts of East Austin and Onion Creek.
• Home Maintenance Plan: Schedule AC tune-ups at least twice a year, clear gutters regularly, and inspect roofs for storm damage or algae build-up. Consider wind mitigation upgrades to reduce insurance costs.

How to Buy a House in Austin Without a Realtor?

Start by researching neighborhoods and browsing listings on trusted sites like Houzeo. Then, schedule showings directly with sellers or their agents. You can also hire a real estate attorney to review contracts and handle legal details.

Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.

Should You Buy a House in Austin?

Absolutely! Austin offers incredible opportunities for homeowners, whether you’re buying for investment, residence, or vacation. Moreover, with more homes being sold below the list price, now’s the best time to buy a house in Texas.

Whether you’re drawn to East Austin’s vibrant culture or West Lake Hills’ scenic luxury, Austin has it all. There’s a neighborhood to match every lifestyle and budget. So if you’re on the hunt, check out our list of the best places to live in Texas!