Dallas’ real estate market is shifting in favor of buyers. The months of inventory for single-family homes has increased from 3.5 to 4.7 months. Moreover, active listings have also risen by 37.20%, giving buyers more options than they’ve had in decade.
With Houzeo, Dallas’ best home buying website, managing your home search is simple. You can look through the latest listings in the Big D, save your favorites, schedule showings, and submit offers, all at your fingertips.
👉 Download the Houzeo mobile app to simplify your Dallas home search.
At a Glance:
- Get a mortgage pre-approval and set your budget to make competitive offers in Dallas’ hot housing market.
- Assess long-term livability, schools, and amenities based on past market trends to pick the right neighborhood.
- Consider regional risks like wildfires, earthquakes, and droughts that could impact your insurance and safety.
- Conduct a home inspection to look for termite damage, storm-related issues, and other possible defects.
- Account for additional expenses like HOA dues, property taxes, and closing costs that can affect your affordability in Dallas.
7 Steps for Buying a Home in Dallas🏜️
Buying a home in Dallas doesn’t have to be complicated. Whether you’re just starting your search or are already browsing homes for sale in Uptown, 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 Dallas 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 places that fit your lifestyle, whether it’s walkable neighborhoods like Uptown or quieter suburbs like Coppell. For investment, consider homes in Oak Cliff or East Dallas, where rental demand continues to climb.
- 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 in Knox-Henderson or Uptown, where the housing market continues to grow.
- Space Requirements: If you’re looking for larger lots or big backyards, consider suburban areas like Uptown or Bishop Arts District. But if you prefer something easier to manage, condos in places like Lake Highlands or Preston Hollow can be a smart option.
Calculate the cost of living in Dallas to get a detailed breakdown of expenses like housing, utilities, transportation, and more. 🏡
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 an expensive region like Preston Hollow or Highland Park.
- Set Your Budget: Make sure your budget accounts for property taxes, homeowners’ insurance, and potential flood insurance, especially in flood-prone areas like the Trinity River Corridor, Bachman Lake Area, or Five Mile Creek.
👉 Use a Texas mortgage calculator to estimate how much property you can afford in the Lone Star State.
2. Explore Loans and Assistance Programs
Down payments in Dallas typically range between 10% and 20%, depending on your financing option. If you’re a first-time buyer or have limited savings, Down Payment Assistance Programs can be a game-changer.
| Program | Description |
|---|---|
| FHA Loans | Require just 3.5% down and are ideal for a first time home buyer in Texas. Flexible credit and income requirements make them widely accessible. |
| VA & USDA Loans | Offer 0% down with competitive interest rates. Great for veterans, active-duty military, and buyers in rural parts of Texas. |
| Texas State Affordable Housing Corporation (TSAHC) | Provides 30-year fixed interest rate mortgage loans, down payment assistance grants, for up to 5%, and mortgage credit certification. |
| Texas Department of Housing and Community Affairs (TDHCA) | Provides assistance through programs like My First Texas Home and My Choice Texas Home Program, with grants and deferred forgivable loans. |
| Mortgage Credit Certificate (MCC) | If you’re approved for a home loan through the Texas State Affordable Housing Corporation, you will receive a mortgage credit certificate worth up to $2,000 a year off your taxes (20% to 25% of the yearly interest you pay on your mortgage) |
| Fannie Mae Sponsored Programs | Help low- and moderate-income buyers in Texas access affordable mortgage products tailored to their financial situation. |
Step 3: Get Pre-Approved for a Mortgage
The Dallas 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 Dallas 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 Texas Market
Time for the fun part—house hunting! Whether you’re looking at houses in Preston Hollow or anywhere else in the Big D, here’s how to buy smart:
- 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.
- 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.
Abilene is the nicest and cheapest place to live in Texas. The number of homes for sale in Abilene is on the rise, thanks to its safe neighborhoods and diverse job opportunities.
Step 5: Make a Competitive Offer
In Dallas’ 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 and comparable sales. In high-demand areas like Highland Park or Lakewood, you might need to offer above the asking price to stand out.
- Down Payment: In Dallas, down payments usually range from 3% to 20%. In competitive markets like Preston Hollow, a larger down payment can strengthen your offer.
- Earnest Money: Boost your earnest money deposit to show you’re serious, especially in hotspots like Uptown and Knox-Henderson, where homes can go fast.
- Contingencies: Include protections like home inspection, financing, and wind mitigation contingencies. These safeguards protect you from potential damages.
- 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.
Step 6: Conduct Inspections and Appraisals
A standard home inspection in Texas should cover:
- HVAC System: Ensures the air conditioning can handle Dallas’ heat and humidity. It is essential for year-round comfort.
- Plumbing: Checks for leaks, corrosion, and water pressure issues, especially in homes built before the 1980s. These houses are more vulnerable to damage from humidity.
- Electrical System: Verifies everything is up to code and can withstand storm-related power surges, which are common in Dallas.
- Roof Condition: Assesses for storm damage, missing shingles, or age-related wear.
- Foundation and Structure: Looks for cracks, moisture, or settlement issues, particularly in flood-prone or sandy-soil areas.
If you’re browsing homes in Dallas, ensure that you get a wind mitigation inspection for hurricane risk. Also, if you have a condo over 30 years old and higher than two stories, make sure you get a Milestone Inspection for structural safety.
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 Dallas 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:
- Set Up Utilities: Dallas has a deregulated electricity market in many areas, so shop around on PowerToChoose.org for the best provider.
- Get Insurance: Homeowners insurance is required if you’re financing, and Flood Insurance is essential in FEMA-designated flood zones.
- 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 Dallas 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 Dallas?
Absolutely! Buying property in Dallas 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 Dallas’ growing job market or its scenic charm, there’s a spot for every lifestyle and budget. So if you’re on the hunt, check out our list of the best places to live in Texas!
