Buying a home in Austin means following Texas contract rules, not national “generic” checklists. You will use a written buyer agreement before showings, a TREC One to Four Family Residential Contract, an option period for inspections, and local tax checks for homestead, MUDs, and floodplain. This guide walks through each step in order.
Educational overview only — not legal, tax, or lending advice. Forms and statutes change; confirm details with your agent, lender, title company, and (when needed) an attorney.
Who this guide is for
This is a practical walkthrough for people buying a one-to-four family home in the greater Austin area (Travis, Williamson, Hays, and nearby counties that use Unlock MLS). It covers Texas-specific documents and customs. It is not a substitute for a signed representation agreement, a lender’s Loan Estimate, or an attorney review of unusual title issues.
If you want a short FAQ first, see our buyer FAQ. For live inventory, start at Austin real estate or featured listings. When you are ready to work with an agent, contact Spyglass or browse agents.
Step 1: Get clear on budget, credit, and pre-approval
Before you tour homes, talk to a lender (or more than one) and get a pre-approval letter, not just a pre-qualification. Pre-approval usually means the lender has reviewed income, assets, and credit enough to state a purchase-price range under stated assumptions. Your monthly payment will include principal, interest, taxes, and insurance (PITI), and often HOA or MUD assessments.
Use a payment calculator to stress-test scenarios: Spyglass mortgage calculator. Loan product types (conventional, FHA, VA, USDA) differ on down payment, mortgage insurance, and property standards — see mortgage types.
Texas tax reality check: property taxes are a major part of the monthly payment in Central Texas. For context on rates and how bills are built, read Austin property tax rate. Homestead exemptions reduce taxable value for a primary residence, but they do not transfer from the seller to you. You apply with the appraisal district after you own and occupy the home (details in Step 9).
Step 2: Choose representation and sign the required written agreement
Texas law and MLS rules both now put written agreements at the front of the process.
State law (effective January 1, 2026): Under Texas Occupations Code §1101.563, a license holder who performs brokerage for a prospective residential buyer must enter a written agreement before showing residential real property, or — if no showing will occur — before presenting an offer. The agreement must state services, termination date, exclusivity, representation status, compensation amount or rate and how it is determined, and a conspicuous statement that broker compensation is not set by law and is fully negotiable. TREC summarizes the 2026 changes here: What Changes in 2026 About Buyer/Tenant Representation in Texas. The statute text is at Tex. Occ. Code §1101.563.
Texas also allows a limited non-representation, showing-only written agreement under §1101.562 / §1101.563 for showings without advice. That path has tight limits (no opinions or brokerage advice; non-exclusive; max 14-day term). Most buyers who want negotiation help will use a full buyer representation agreement.
MLS / NAR settlement overlay: MLS participants working with a buyer must have a written agreement before touring a one-to-four family home, with objectively ascertainable compensation (not “whatever the seller offers”). Texas REALTORS® explains the MLS and compensation rules here: NAR Broker Compensation Rules.
IABS: Texas requires license holders to provide the Information About Brokerage Services notice so you understand broker, agent, intermediary, and related roles. Current form: TREC IABS 1-2 (PDF).
Ask who the agent represents, what services are included, how compensation works in your agreement, and what happens if you want to terminate.
Step 3: Define search criteria and tour homes
Translate budget into a search: price range, property type, commute, lot size, HOA vs non-HOA, and must-haves vs nice-to-haves. Use communities and ZIP code search to explore areas by map, not by stereotypes.
Fair Housing note: Agents cannot steer you toward or away from neighborhoods based on race, color, religion, sex, disability, familial status, national origin, or other protected characteristics under federal, state, or local law. Choose locations from your own criteria (commute, budget, property features). Do not ask an agent to filter by who lives there.
When you tour:
- Confirm what is real property vs personal property (appliances, mounts, sheds).
- Note deferred maintenance you can see (roof age cues, foundation clues, drainage).
- Ask for the Seller’s Disclosure Notice early when available (Texas Property Code §5.008; TREC form Seller’s Disclosure Notice 55-1).
- For flood risk, run the address through FEMA and City of Austin tools — see our guide Buying a home in an Austin floodplain.
Market context (not a prediction): Unlock MLS reported that in September 2026, the Austin–Round Rock–San Marcos MSA median sale price was $421,000 (+1.4% YoY), with 5.4 months of inventory and homes closing at an average of 92.7% of original list price; City of Austin median was $570,958 (Unlock MLS September 2026 Central Texas Housing Report). Neighborhoods and price bands vary widely — treat metro medians as background, not a bid formula. For a fuller snapshot, see Austin housing market.
Step 4: Write the offer on the TREC One to Four Family Residential Contract
Most Austin resale purchases of one-to-four family homes use TREC No. 20-19, One to Four Family Residential Contract (Resale) (TREC form PDF). Your agent completes negotiated blanks; you should understand the big ones:
| Contract piece | What it usually means in Texas practice |
|---|---|
| Sales price & financing | Cash vs loan; third-party financing addendum if needed |
| Earnest money | Deposit to escrow within 3 days after Effective Date (¶5) |
| Option fee & option period | Paid fee for an unrestricted right to terminate within the negotiated option days (¶5) |
| Title policy | Seller furnishes owner’s title policy at Seller’s or Buyer’s expense — checkbox in ¶6A |
| Survey | Existing survey vs new survey; “shortages in area” amendment option |
| Seller’s Disclosure | Delivered / attached / not required (limited statutory exceptions) |
| Closing date | Negotiated; title and lender timelines drive feasibility |
| Special provisions / addenda | HOA, MUD, lead-based paint, etc., as applicable |
Earnest money and option fee (¶5): Within three days after the Effective Date, the buyer delivers earnest money and the option fee to the named escrow agent. Amounts Escrow Agent receives apply first to the option fee, then earnest money. The option fee is typically credited to the sales price at closing and is released to the seller. If you terminate during a valid option period, you generally keep earnest money and the seller keeps the option fee (read the exact contract language). Time is of the essence for ¶5.
Option period: This is your negotiated window to inspect and walk away for any reason (or no reason), as long as you give notice by 5:00 p.m. local time on the last option day. Length is negotiable — often several days to a couple of weeks depending on market conditions. No option fee / late option fee can eliminate the unrestricted termination right under ¶5.
Step 5: Use the option period for inspections and due diligence
Treat the option period as a project plan, not a casual window.
Typical inspection stack (adjust to the property):
- General home inspection
- Depending on findings / age / location: foundation/structural, roof, HVAC, pool, sewer scope, pest/WDO
- Survey review (encroachments, easements, fence lines)
- Title commitment exceptions (you or your agent/title closer walk the exceptions)
- Insurance quote — especially for older roofs, prior claims, or flood zones
- Floodplain / drainage check (Austin floodplain guide)
- HOA resale documents if the property is in a property owners’ association
- MUD / PID / special district tax research
HOA resale certificate: For many subdivision HOAs, Texas Property Code Chapter 207 entitles an owner/purchaser/title company to governing documents and a resale certificate prepared not earlier than the 60th day before delivery. The association generally must deliver within 10 business days after a valid written request (and any required evidence of authority). The certificate covers assessments, unpaid amounts, reserves summary items, insurance for common areas, known deed-restriction issues the board actually knows about, and more (Tex. Prop. Code Ch. 207). Condos use different chapters (81/82) — do not assume Chapter 207 applies.
MUDs and PIDs: Municipal Utility Districts and Public Improvement Districts can add significant tax or assessment layers beyond city/county/school. Read What is a MUD in Texas before you treat a “lower” list price as a bargain.
Seller’s Disclosure follow-up: Compare the disclosure to inspection findings. Material mismatches are negotiation facts. Some transfers are exempt from §5.008 (for example certain foreclosures, new never-occupied homes, and other listed exceptions) — Texas REALTORS® summarizes common exceptions in its disclosure FAQs.
After inspections you typically: (a) proceed, (b) amend for repairs/credits/price, or (c) terminate within the option period. Repair amendments are negotiated; sellers are not automatically required to fix everything on an inspection report.
Step 6: Title, survey, appraisal, and loan underwriting
Title commitment: Under the TREC contract, the seller furnishes a commitment for title insurance within the stated timeline after the title company receives the contract (¶6). Review exceptions, easements, liens, and any requirements. For a deeper primer, see How to do a title search in Texas.
Owner’s title policy: Texas title insurance premiums are promulgated (same basic rates among title companies for the same coverage). Who pays the owner’s policy is negotiated via the ¶6A checkbox; in many Central Texas resale customs the seller pays the owner’s policy, but that is custom, not a statute that forces it every time. TDI explains title insurance basics: Title insurance FAQ. Rate tables: Texas Title Insurance Basic Premium Rates. Lenders usually require a loan (mortgagee) policy; buyers often pay that when financing.
Survey: Lenders and title underwriters may require a current survey or an existing survey with a T-47 Residential Real Property Affidavit. Amending the standard survey exception to “shortages in area” is a negotiated expense.
Appraisal: If you finance, the lender orders an appraisal. If the appraisal comes in below contract price, you may renegotiate, bring cash, or (depending on contingencies and timing) terminate under financing provisions — read your financing addendum carefully.
Underwriting: Keep employment, large deposits, and new debt stable until closing. Respond to lender conditions quickly.
Step 7: Final walk-through and closing
Before closing, walk the property to confirm agreed repairs, that it is in the contractual condition, and that personal property matches the contract. Closing in Texas is typically at a title company. You will sign loan and conveyance documents, wire funds per the Closing Disclosure / settlement statement, and receive keys per the contract (often at funding).
Buyer closing-cost categories (amounts vary by price, lender, and negotiation):
| Category | Common examples |
|---|---|
| Lender costs | Origination, underwriting, credit report, appraisal |
| Third-party | Title services, escrow, recording, courier |
| Prepaid / escrow | Prepaid interest, homeowner’s insurance, tax escrow |
| Title insurance | Loan policy (buyer often); owner’s policy (negotiated) |
| HOA / other | Transfer fees, resale certificate fees (often buyer unless negotiated) |
| Option fee | Already paid; credited at closing if contract says so |
Ask your lender for a Loan Estimate early and a Closing Disclosure at least three business days before consummation on most closed-end mortgages (federal TRID timing). Your agent and title closer can walk a draft settlement statement line by line.
Step 8: After closing — homestead, utilities, insurance
- Homestead exemption (Travis County example): File with Travis Central Appraisal District (TCAD). For the 2026 tax year, Austin ISD’s general residence homestead (HS) exemption is $140,000 off appraised value for school taxes; City of Austin and Travis County list a 20% local-option homestead with a $5,000 minimum (TCAD 2026 Exemption Listing Report, generated July 19, 2026). Other ISDs and cities differ — check your parcel’s taxing units. Deadlines and ownership/occupancy rules matter; apply after you own and occupy as your principal residence. The seller’s exemption does not transfer to you.
- Change utilities, locks, and insurance effective dates.
- Keep the survey, title policy, and closing file for future sales and refinance.
Buyer timeline checklist (typical financed resale)
| Phase | What happens | Rough timing |
|---|---|---|
| Prep | Credit, budget, lender pre-approval, agent agreement + IABS | Days to a few weeks |
| Search | Tours, disclosures, shortlist | 1–8+ weeks (highly variable) |
| Offer | TREC 20-19 negotiated; effective date | 1–3 days of active negotiation common |
| Option | Inspections, insurance, HOA/MUD/flood checks; repair amend or terminate | Negotiated option days |
| Pending | Title, appraisal, underwriting, survey | Often ~30–45 days to close, negotiated |
| Close | Final walk-through, sign, fund | Closing day |
| After | Homestead application, records | Weeks after occupancy |
Illustrative buyer cash-to-close ranges (not quotes)
Exact dollars depend on price, down payment, credits, and who pays which title fees. For planning only:
| Item | Planning note |
|---|---|
| Down payment | Set by loan program and your offer (e.g., conventional often 3–20%+) |
| Earnest money | Negotiated; held by escrow; applied at closing if you proceed |
| Option fee | Negotiated; usually credited at closing if you close |
| Inspection suite | Often hundreds to low thousands depending on specialists |
| Appraisal | Commonly a few hundred dollars (lender-ordered) |
| Closing costs | Often roughly 2–5% of price for many financed buyers before credits — verify with your Loan Estimate |
Questions to ask your buyer’s agent
- Are we signing a representation agreement or a showing-only agreement, and what services are included?
- How is your compensation stated in the agreement, and how might seller concessions interact with it?
- What option period length and option fee are realistic for this price band right now?
- Who is paying for the owner’s title policy in our draft offer, and is that local custom or a negotiation lever?
- How will we handle HOA resale docs, MUD notices, and floodplain checks inside the option period?
- What is your plan if the appraisal comes in low?
- Which inspectors do you recommend for foundation / sewer / older roofs in this area?
- How will we compare total monthly cost (PITI + HOA + MUD) across shortlisted homes?
Frequently asked questions
Do I need a written buyer agreement before I tour homes in Texas?
Yes for residential showings with a license holder performing brokerage: as of January 1, 2026, Occupations Code §1101.563 requires a written agreement before showing residential real property (or before presenting an offer if no showing). MLS rules for participants also require a written agreement before touring. See TREC’s 2026 summary.
What is the option period on a Texas home purchase?
It is a negotiated number of days in TREC ¶5 during which the buyer has an unrestricted right to terminate after paying the option fee on time. Notices are due by 5:00 p.m. local time on the last day. If you terminate properly, earnest money is typically refunded and the option fee stays with the seller.
Who pays for title insurance in Texas?
The contract decides. Paragraph 6A of the One to Four Family Residential Contract has checkboxes for owner’s policy at Seller’s or Buyer’s expense. Many Central Texas resale deals have the seller pay the owner’s policy as a custom, but it is negotiable. Premiums themselves are promulgated by TDI.
How much earnest money do I need in Austin?
There is no statewide fixed percentage. Amounts are negotiated based on price, competition, and risk tolerance. Deliver within three days after the Effective Date to the named escrow agent.
Does the seller’s homestead exemption transfer to me?
No. Homestead exemptions are personal to the qualifying owner-occupant. After closing, apply with the appraisal district (TCAD in Travis County) once you own and occupy the home as your principal residence.
What is a MUD, and why does it matter when I buy?
A Municipal Utility District can add tax or infrastructure costs beyond city taxes. Always compare the full tax and assessment stack, not just list price. See What is a MUD in Texas.
Can I buy a home in an Austin floodplain?
Sometimes yes, but lenders, insurance, remodeling rules, and resale demand change. Austin also maintains maps that can be stricter than FEMA. Read Buying a home in an Austin floodplain and verify the specific address.
What is the Seller’s Disclosure Notice?
Texas Property Code §5.008 generally requires sellers of previously occupied single-family residences to disclose material facts about the property’s condition using a statutory-style notice (TREC Form 55-1 is the promulgated form). Some transfers are exempt. Review it carefully and compare it to inspections.
How long does it take to buy a house in Austin?
Search time varies. From executed contract to close, many financed resales target roughly 30–45 days, but appraisal, underwriting, survey, and repair negotiations can shorten or extend that. Cash purchases can close faster when title is clear.
Should I use an iBuyer or cash buyer instead of a traditional purchase?
Those are seller-side tools. As a buyer, focus on contract terms, inspection rights, and financing. If you are comparing purchase strategies while also selling, see Spyglass cash offer / trade-in and talk through net outcomes with your agent — not just headline speed.
Sources
- Texas Real Estate Commission — What Changes in 2026 About Buyer/Tenant Representation
- Texas Occupations Code §1101.563 — Written Agreement Required
- Texas REALTORS® — NAR Broker Compensation Rules / MLS written agreement
- TREC — One to Four Family Residential Contract (Resale) 20-19 (PDF)
- TREC — Information About Brokerage Services (IABS 1-2 PDF)
- TREC — Seller’s Disclosure Notice
- Texas Property Code Chapter 207 — Resale certificates / subdivision information
- Texas Department of Insurance — Title insurance FAQ; 2026 basic premium rates
- Travis Central Appraisal District — 2026 Exemption Listing Report (PDF)
- Unlock MLS — September 2026 Central Texas Housing Report
