Considering a move to the great state of Texas? If you’ve bought a home before, it’s easy to assume that you know the process. However, real estate is done a bit differently in each state, and we’ve had the privilege of helping a large number of buyers coming from out of state. So, today, we’re breaking down the list of things we know to be unique to the real estate process in Texas!
The Roof
While North Texas doesn’t see many natural disasters, we do have other unique challenges when it comes to weather. Specifically, hailstorms. North Texas tends to have fairly frequent hail storms. And as they say, many things are “bigger in Texas'' and that includes the size of hail. Because of this, it’s quite common to have a roof replaced under an insurance claim due to hail damage. We always recommend paying close attention to your wind and hail deductible on your homeowner's insurance policy. In North Texas specifically, it’s been said that the average lifespan of a roof is about 8 years. After a hailstorm, many homeowners will call a trusted roofer to come out and see if the damage to their roof would meet an insurance claim. If it does, then they will pay the deductible and get a new roof!
Foundation Issues
The North Texas soil is high in clay content, which means that the soil expands with moisture and contracts in a drought. This movement causes settling in houses. Almost all homes will have settled to some degree. There’s a formula for the margin of tolerance that is considered acceptable to structural engineers, and when a house has settled outside of this margin, repairs must be made. When buying a home in North Texas, know that there is going to be movement. The question is how much movement and whether or not it is compromising the integrity of the home.
Foundation repair is not a regulated industry. So, when in need of foundation work, we recommend working with a company that has a solid reputation and long history. If you’re purchasing a home that previously had the foundation repaired, make sure that there is a lifetime transferable warranty, that a reputable company did the work, that a structural engineer signed off after repairs were made, and that a plumbing test was completed after the repairs. Your Realtor should be looking out for all of this for you when buying a home.
There are a few ways to prevent foundation issues. Too much or too little water in the soil around your foundation will cause movement and settling. Therefore, gutters and an irrigation line around the foundation of the home can help you regulate the moisture levels. You will also want to keep larger trees at a distance from your foundation as their roots can absorb too much water and leave the soil too dry.
Washers, Dryers & Refrigerators
When considering what comes with the house, most appliances are considered items that will convey automatically with real estate. However, there are three exceptions: washers, dryers, and refrigerators. These are considered personal property items and therefore, the seller is free to take them with them when they move out unless written into the contract. When purchasing a home in Texas, you need to be prepared to bring your own or negotiate them into the contract.
Basements
If you’re moving from a northern state, you may be accustomed to having a basement in your home. Basements are great for extra living space or additional storage space. However, here in Texas, basements are very hard to find. Most basements in Texas will be found either in 200-year-old houses or very high-end luxury custom homes.
In Northern states, the majority of homes have basements because they have to build the foundation so deep to pass the freeze line, that it’s cost-effective to turn that into usable space. In Texas, however, the deeper you dig, the more rock in the soil you will encounter. This makes it incredibly expensive to actually build out a basement. So if making the move to Texas, don't expect your home to have a basement.
Escalation Clauses
An escalation clause is a clause you enter into a contract that essentially says, “If someone has a higher offer than my initial offer, I’m willing to offer more up to this certain point.” In a competitive market, many other states allow an escalation clause. However, TREC rules prohibit license holders from writing escalation clauses. According to TREC, a license holder drafting language of this type is considered an unauthorized practice of law.
By not allowing escalation clauses, buyers are encouraged to put their best offer forward, and it also protects everyone from disputes or even lawsuits.
The Option Period
In Texas, when your offer is accepted on a home, you move into what is called the Option Period. The Option Period is a negotiated amount of time where the buyer can terminate the contract for any reason, forfeiting only the Option Fee (typically about $500). Many other states have an inspection contingency, but Texas is a bit more open-ended. This is one of our favorite things about real estate in Texas! This Option Period allows buyers the opportunity to have a bit more time to process the homebuying decision when they have more information and renegotiate based on findings if needed.
30 Day Closing
In Texas, from the day the contract is accepted to the day you close is on average, about 30 days. Some other states see 45 to 60 days as a typical contract-to-closing timeline, which would be a longer closing for us in Texas!
Title Companies
Because of our use of title companies in Texas, buyers will rarely meet the owner or the seller of the property they are buying. We don’t typically use an attorney to sort out the paperwork but instead use escrow agents at a title company to do the title work and hold funds in escrow. Both parties will eventually sign at the title company, but they will not typically meet.
Leaseback Agreements
Though they aren’t common in many states, leasebacks are a tool frequently used in Texas real estate transactions. In a leaseback, the seller stays in the home after closing and funding as a tenant for a specific amount of time at a specific rent and deposit.
Leasebacks allow the seller to have some margin for error in case their sale is delayed or in case they need the overlap to avoid moving twice. In a competitive buyer situation, it can be quite common for the buyers to allow the sellers to remain with a leaseback at no charge, but leasebacks are rarely longer than 90 days.
Moving to a new state can be overwhelming. So, working with professionals with a lot of experience helping out-of-state buyers move to Texas is an important piece of the puzzle. If you’re considering a move to the great state of Texas, give us a call! We’d love to help you navigate the Texas market and find a new home.
Until next time,
Brianna and Keelie