Buying a Home in Houston: FAQ

The listing agent works for the seller. Your own agent checks the price against sales, flags resale and inspection issues, shares tools and information for researching flood risk, writes and negotiates your offer and keeps the lender and title company on schedule. Texas law effective January 1, 2026 requires a written agreement before a license holder shows a prospective residential buyer a home, or presents an offer if no home is shown. See the agreement question below for representation and showing-only options.

By negotiating with data and knowing what to ask for. Our buyers regularly use seller credits for closing costs or to buy down their rate; one Montrose buyer received $22,000 in seller credits and put part of it toward discount points.

We point out the negatives, not just the positives: pricing problems, inspection findings and resale concerns. Our investor background means each home also gets a hard look as an investment, and a buyer specialist is assigned to you for showings and quick answers.

We don't stop at what's for sale today. We watch HAR's Coming Soon listings, homes that are about to go on the market, so you hear about them early. We look off market for owners who may sell but haven't listed. And we send buyer-match letters: we pick about 25 homes that fit your price range, area and must-haves from county appraisal district records (HCAD in Harris County) and mail each owner a short printed letter saying we have a buyer for a home like theirs. We only send these letters for real, active buyers, and an owner who has been thinking about selling may call before ever listing. Tell us what you're looking for and we'll start with the homes that fit best.

Yes. We plan both moves together, using options such as an offer contingent on your sale with a 60 to 75 day closing, a leaseback, gift funds or a bridge loan. It adds a few moving parts, but most of our move-up buyers are in exactly this position.

Yes. The builder's sales team works for the builder. We register you at your first visit, or if you tour a new construction community on your own, you can register us as your agent by naming Compean Group on the builder's registration card at that first visit. We compare builders and communities, walk you through the builder's contract terms and deadlines (a real estate attorney can answer legal questions about it) and negotiate incentives such as rate buydowns and upgrade credits. See our new construction buyer's guide.

Plan for the down payment (as little as 3 to 3.5% on many loans, and 0% with VA and USDA loans or with programs offered in certain areas or by certain lenders if you qualify), closing costs, the option fee, earnest money and inspections. Even with a 0% down loan, have at least a few thousand dollars ready up front for the earnest money, option fee and inspections, which are due within days of signing the contract, long before closing. Seller credits can cover part of your closing costs if you negotiate them in the offer.

Here's an example at 7% on a 30-year loan with 20% down:

• Down payment: $200,000, leaving an $800,000 loan, which is under the 2026 conforming limit of $832,750, so it isn't a jumbo loan.
• Principal and interest: about $5,322 a month.
• Property taxes at Houston's typical combined rate of about 2.2%: about $1,833 a month.
• Homeowners insurance at about 0.5% of the price: about $417 a month.
• Total: about $7,572 a month, with no mortgage insurance at 20% down.

A household income of about $252,000 a year keeps that payment near 36 percent of gross income, and about $325,000 keeps it near 28 percent, the traditional comfort zone. With little other debt, many lenders approve total debt payments up to about 45 percent of income, or roughly $202,000 a year here. Lenders look at the minimum required payment on each debt, such as car loans, student loans and credit cards, not what you actually pay each month or the total you owe. Once your homestead exemption is in place, the tax portion drops to roughly $1,400 a month, and a lender's pre-approval gives you the exact numbers.

Yes, if your lender allows it, seller credits can pay for discount points. One point costs 1% of the loan amount and often lowers the rate by about a quarter point, though the exact pricing varies by lender and by day.

Example on a $500,000 home with 10% down, a $450,000 loan, at an illustrative 7.25% rate:

• Negotiate: your offer asks the seller to pay $10,000 toward your closing costs and discount points (paragraph 12A(1)(b) of the Texas resale contract) instead of cutting the price by $10,000.
• Apply: your lender uses $9,000 of the credit to buy two points at $4,500 each, lowering the rate to about 6.75%, and the other $1,000 goes toward your other closing costs.
• Result: principal and interest drop from about $3,070 to about $2,919 a month, roughly $151 saved every month, compared with about $61 a month if the same $10,000 came off the price.

Seller credits must fit your loan's limit on seller contributions, which is 6% of the price ($30,000 here) on a conventional loan with 10% down, and your lender's Loan Estimate shows the exact cost of each point. One of our buyer clients put part of $22,000 in seller credits toward points to lower the rate.

A general home inspection plus a termite inspection. Add an invasive stucco inspection for stucco homes, a foundation evaluation if you see sloping floors or sticking doors, a sewer scope on older homes and a septic inspection on rural lots. The stucco inspection drills small holes in the walls, so it needs the seller's written approval first. Air quality and mold testing are worth adding when needed, which is common for homes that flooded before, homes that had active leaks, or homes with a musty smell inside.

It's an invasive inspection, so we need the seller's authorization before it can be scheduled. The inspector drills small holes in the stucco, usually around windows, doors, rooflines and other spots where water tends to get in, takes moisture readings of the substrate behind it, and seals each hole with an appropriate sealant. The readings are assessed to determine whether moisture has gotten behind the stucco, and the inspector checks that the wood substrate is firm; soft wood points to moisture damage. It's common in Houston for owners to fall behind on stucco maintenance, so the test helps prevent surprises and gives us something concrete to negotiate repairs with the seller during your option period.

Repairs, a credit at closing, a price reduction or nothing at all. It all happens during your option period: you complete your inspections, we send the seller an amendment asking for the items that matter most, and we negotiate from there. Focus on safety, water and structural items, since sellers rarely pay for cosmetic or age-related wear, and a credit is often simpler than repairs because you choose who does the work. If we can't reach an agreement you're comfortable with before the option period ends at 5 p.m. on its last day, you can terminate the contract and get your earnest money back; the option fee stays with the seller.

A seller can ask, but you don't have to agree. In today's market it's rare, and we generally advise keeping the option period, since it's your window to inspect and to walk away for any reason before it ends.

FHA and VA appraisers can require repairs before the loan closes, which makes this another area of potential negotiation. If the seller declined certain repairs earlier and the buyer agreed, but the appraiser then calls out those items, we would need to reopen the conversation with the seller. Under the Texas resale contract, neither party has to pay for lender-required repairs unless they agree in writing, and if no one agrees to cover them, the contract terminates and the buyer's earnest money is refunded. Once the parties agree on who handles the work, the appraiser re-inspects and the lender clears the loan, which is how a recent Cypress purchase of ours closed.

It's the VA's appraisal result for your loan, abbreviated as NOV. After the VA fee appraiser's report is reviewed by the lender's staff appraisal reviewer or by VA staff, the NOV is issued with the home's value and any conditions, and once it's issued the lender can finalize the loan and set a closing date. If the appraiser sees that the value may come in below the sales price, they start what's called the Tidewater process before finishing the report: the parties get 2 business days to submit comparable sales that support the value, and the appraiser considers them before finalizing it. The VA Lender's Handbook covers both: Chapter 13, Notices of Value and Chapter 10, Topic 8, the Tidewater procedure.

Only some loans, mainly FHA and VA, can be assumed, and the lender must approve you. "Subject-to" deals carry real risk because most mortgages let the lender call the loan when the home sells, so talk to a real estate attorney first.

Not always. You can often use the seller's existing survey with a T-47 affidavit confirming nothing has changed, if the title company and lender accept it.

After the contract is signed, the title company runs a title examination, searching the public records for the property's chain of ownership and any liens, judgments, easements and restrictions. The results come back as the title commitment, the title company's promise to issue a title insurance policy once the requirements in it are met. The title company also checks the commitment against the survey, and on larger lots that can reveal pipelines or easements that affect how you use the land. Under the Texas resale contract, you then have a set number of days to object in writing to items in the commitment or survey, and the seller can try to cure them before closing.

A Texas title commitment has four schedules:

• Schedule A: the basics, including the effective date, the policy amounts and who will be insured (you and your lender), the current owner of record and the property's legal description.
• Schedule B: the exceptions, meaning items the title policy will not cover, such as recorded easements, deed restrictions, building lines and mineral reservations.
• Schedule C: the requirements that must be met before closing, such as paying off the seller's mortgage and any other liens, and signing or recording releases and other documents.
• Schedule D: disclosures about the title insurance company and title agent, including who owns them and how the title premium is divided.

Sometimes, under a short-term agreement signed before closing. On one recent sale, the buyers moved in early for the Easter holiday this way.

Confirm agreed repairs were done, appliances work, and you have every key, garage remote and mailbox key. Missing remotes and mailbox keys are among the most common calls we get after closing.

Usually both are open to negotiation. A refrigerator, washer or dryer is included only if the contract says so, so we spell them out in your offer.

Texas law effective January 1, 2026 requires a written agreement before a license holder shows you a residential property, or presents an offer if no property is shown. A representation agreement describes services, duration and negotiable compensation. There is no set length: it runs for whatever term you and the agent agree on, from a single day to a year or more, and ends on the date written in it. A qualifying non-representation agreement is showing-only, non-exclusive and limited to 14 days; it does not provide advice or negotiation. An open house hosted by the listing brokerage is an exception: the host must disclose that they represent the seller. Other hosts may require an agreement. We explain the applicable agreement before you sign.

Source: TREC: Texas buyer agreement requirements for 2026.

We ask the listing agent about timing and what matters to the seller, then shape your offer on price, option period, closing date and flexibility. Full price with a free leaseback can be more attractive to a seller than a higher offer with tougher terms.

Lenders don't require it outside high-risk zones, but I recommend at least pricing it. About 68 percent of the structural damage reported after Harvey was outside the mapped 100-year floodplain, according to the Harris County Flood Control District.

From our guide: Houston flood zones and flood insurance

Start with the seller's disclosure, which asks about past flooding, flood claims and FEMA assistance. Then ask for any elevation certificate and repair records, check the Flood Warning System's historical inundation maps and have your inspector look for signs of past water damage. For the big picture, see the Harris County Flood Control District's Harvey estimated maximum inundation map and NASA's before-and-during satellite comparison.

From our guide: Houston flood zones and flood insurance

It depends on the home's elevation, location and rebuilding cost. Many homes outside high-risk zones pay a few hundred dollars a year, while homes inside them can pay several thousand, so get a quote for the specific address.

From our guide: Houston flood zones and flood insurance

Often, yes. An NFIP policy can be assigned to the buyer at closing, which may keep the seller's current premium and rate protections.

From our guide: Houston flood zones and flood insurance

The national average 30-year fixed rate was 7.40% on October 15, 2026, according to Freddie Mac. Houston quotes are similar but vary with credit score, down payment, loan type and points.

From our guide: Mortgage rates, seller credits and buydowns

A 2-1 buydown temporarily subsidizes your mortgage payments. Your initial payments are calculated as if the rate were 2 percentage points lower in year one and 1 point lower in year two; the note rate does not change. Full scheduled payments begin in year three. The subsidy is funded upfront, often by a seller or builder. Fannie Mae requires qualification at the full note rate. Ask your lender for eligibility, total cost and payment details.

Source: Fannie Mae temporary buydown guidelines.

From our guide: Mortgage rates, seller credits and buydowns

It depends on how long you keep the loan. One point costs 1% of the loan and often lowers the rate about a quarter point, which can take around five years to break even. It's a better deal when the seller pays for it.

From our guide: Mortgage rates, seller credits and buydowns

The metro area is spread out, and jobs are spread across several centers, including Downtown, the Texas Medical Center, the Galleria and Uptown, the Energy Corridor, Greenspoint, The Woodlands, Westchase and the Clear Lake and NASA area. The same price range can mean a 15-minute commute or an hour-plus drive depending on where you work, and toll roads, freeway access and school-day traffic all play a part. Knowing your workplace, and your partner's if you have one, lets us focus on the areas that fit your drive.

About 28 minutes one way for workers who live in the City of Houston, and about 31 minutes across the metro area, according to the U.S. Census Bureau's 2024 American Community Survey. The metro area covers about 10,000 square miles counting its bays and lakes, roughly the size of Massachusetts and close to the size of Belgium, so your own commute depends on where you live relative to work, friends and family, which freeway you drive and the time of day. Map those places before you pick an area, and try the drive at rush hour before you commit to a home.

No. Houston is the largest U.S. city without zoning, and voters rejected it in 1948, 1962 and 1993. Land use is shaped instead by deed restrictions that neighborhood associations enforce, the city's development rules on lot size, setbacks and parking, historic district rules, and minimum lot size or building line areas that some neighborhoods adopt. Where no restrictions apply, a townhome project or a business can go up next to single-family homes, so check the deed restrictions and what's around a property before you buy.

Your pre-approval or lender's contact information if you have one, your budget and timing, and a list of needs and wants, such as bedrooms, commute, schools, yard size and must-have features. That list helps us focus the search and spot the right homes quickly.

Because the total number of reviews isn't the whole story. Many of the companies with more reviews are large teams or brokerages with dozens or even hundreds of agents, so their reviews are spread across far more people, and the agent who would actually handle your sale or purchase often has only a handful of their own. Compean Group is a small team with 921 reviews and ratings across Google, Zillow, Yelp, RateMyAgent and HAR, which works out to far more reviews per agent than most large operations. When you compare, ask how many reviews the agent you'd actually work with has.

It's a one-page notice from the Texas Real Estate Commission that explains who works for whom. A brokerage can represent the seller, represent the buyer, or act as an intermediary between both, and the form lists the minimum duties owed in each role. Every Texas license holder has to give it to you at the first real conversation about a property or your plans. It isn't a contract, and signing to show you received it doesn't commit you to anything. You'll find ours at the bottom of every page on this site and in every email we send.

Earnest money is your good-faith deposit. About 1% of the price is normal in our market. Under the TREC resale contract, it's paid to the title company named in the contract within 3 days after the effective date, and at closing it's credited toward your down payment and closing costs.

You get it back when you end the contract under one of its rights, for example:

• during the option period;
• under the financing addendum, when the loan or the appraisal falls through within its deadlines;
• when the seller's disclosure arrives late.

You can lose it if you walk away without a contract right, such as after the option period ends. The title company releases it only when both sides sign a release, so always send your termination in writing and on time.

Usually not. The option fee is what you pay the seller for your inspection period, the unrestricted right to end the contract for any reason before the deadline. The seller keeps it whether or not you use that right. If you close, it's credited toward your purchase. Under the TREC resale contract, you deliver it to the title company within 3 days after the effective date. Your termination notice must arrive before 5:00 p.m. local time on the last day of the option period. After that, the unrestricted right is gone, and the fee is still spent. See What is the option period?

TREC's financing addendum gives you two separate protections, each with its own deadline.

• Buyer Approval. If you can't get loan approval based on your income, credit and assets, you can end the contract with written notice before the Buyer Approval deadline written in the addendum, and get your earnest money back. If that deadline passes without a notice, the contract is no longer subject to buyer approval. Losing the loan after that can put your earnest money at risk.
• Property Approval. If the home itself doesn't meet the lender's requirements, for example because of a low appraisal, insurability or a lender-required repair, you can end the contract before closing and keep your earnest money.

Some buyers shorten or waive these rights to strengthen an offer. Before you sign, have your lender confirm that the deadlines match their real timeline.

Check three places:

• The seller's notice. Texas requires the seller to give you a written notice about a MUD or similar district before you sign the contract. It shows the district's tax rate and bonds.
• The appraisal district. Look up the property on HCAD (Harris County), FBCAD (Fort Bend) or MCAD (Montgomery). The account lists every taxing unit, and a MUD, PID, water control or levee district will be named there.
• The county tax office's rate list. Look up the district's current rate.

Add that rate to the city, county, school and other rates to get your total. See What is a MUD tax and how much does it add?

A resale certificate is the HOA's statement for that specific lot. It covers dues and special assessments, any amount owed, known violations, lawsuits, insurance, transfer fees, the budget and the rules. In a TREC contract, the HOA addendum says who orders it, who pays for it and how long the buyer has to review it. If it isn't delivered in time, or the buyer isn't satisfied during the review period, the buyer can end the contract as the addendum allows and get the earnest money back. Texas law gives the association 10 business days after a written request to deliver it, caps the fee at $375 ($75 for an update), and doesn't let it charge the fee at all if it's late. If the HOA is slow, the title company or agent should follow up in writing right away.

Texas law requires the Seller's Disclosure Notice before the contract's effective date. If the seller delivers it after you sign, you can end the contract for any reason within 7 days after you receive it, or before closing if that comes first, and the TREC resale contract refunds your earnest money. If you never receive it, the contract lets you end it at any time before closing. This doesn't apply to sellers who are exempt from the disclosure. See Which sellers don't have to give a Seller's Disclosure Notice?

Yes, for most homes built before 1978. The seller must:

• disclose any known lead-based paint and any reports, on TREC's lead-based paint addendum;
• give you the EPA's lead pamphlet;
• offer a 10-day window for a lead inspection or risk assessment, which you can waive.

Many bungalows in the Heights, Woodland Heights, Garden Oaks, Montrose and Near Northside were built well before 1978, so expect this addendum there. Intact paint under newer layers is usually less of a concern than peeling paint and renovation dust. Ask your inspector to note chipping paint, and use EPA-certified contractors for any renovation work.

Lender-required repairs. These are common with FHA and VA loans: peeling paint, missing handrails, roof or safety items. The TREC resale contract doesn't make either side pay for them. If you and the seller can't agree on who does, the contract can end and your earnest money is refunded.

Low appraisal. Your protection depends on the financing addendum's property approval and any appraisal terms in your contract. The usual options are:

• renegotiate the price;
• cover the gap in cash;
• ask your lender to reconsider the value with better comparable sales;
• end the contract under your contract rights.

See What if the appraisal requires repairs? and Can I challenge a low appraisal?