Relocating to Austin: the real estate checklist

Understand the Texas tax trade-off before you run the numbers

If you are coming from California, New York, Illinois, or any state with income tax, the headline sounds great: Texas has no state income tax. But Texas makes up for it with higher property taxes and sales tax. You need to run the full comparison before assuming you will save money.

On a $412K home, you are paying roughly $9,000-$10,000/year in property taxes before exemptions. After filing your homestead exemption (free, takes 5 minutes online), your assessed value can only increase 10% per year. File it the day after you close.

• Run a side-by-side tax comparison: your current state income tax vs. Texas property tax on your target home price
• Factor in the sales tax difference (8.25% in Austin vs. your current state)
• Understand the homestead exemption: it caps your assessment increases at 10%/year and exempts part of your value from school taxes
• If you are keeping property in your origin state, check if you owe taxes in both states during the transition year

Get pre-approved with a Texas lender before you visit

Do not fly to Austin without a pre-approval letter from a lender licensed in Texas. Your pre-approval from your current state may not transfer, and in a market where homes still move in 30-60 days, you need to be ready to write an offer during your visit if you find the right place.

If you are selling your current home and buying in Austin, the timing gets complicated. Texas has specific closing procedures (wet funding, title company escrow) that differ from many other states. A local lender understands the process. If this is your first home, check TSAHC down payment assistance, which offers up to 5% as a grant or forgivable lien.

• Get pre-approved with a lender licensed in Texas (not just your current state)
• If selling your current home first, discuss bridge loan options or contingent offers
• Ask about the Texas closing process (wet funding, title company escrow, same-day key release)
• If first-time buyer: take the TSAHC eligibility quiz for down payment assistance

Learn the geography (Austin is not one market, it is six)

Most relocators think of "Austin" as one place. It is not. The metro spans five counties, a dozen cities, and multiple school districts. Where you buy determines your taxes, your commute, your school options, and your long-term appreciation.

If you work downtown, I-35 and MoPac are your corridor options. If you work remotely, the south/southeast suburbs give you the most house per dollar. If you have school-age kids, compare Round Rock ISD, Leander ISD, Eanes ISD, and Lake Travis ISD before choosing a location.

• Identify your work location or commute requirements first
• Research which county your target neighborhoods are in (taxes vary by county)
• Compare school districts if that matters to your family
• Look at what is being built nearby: data centers, new subdivisions, commercial development
• Use Google Maps traffic layer during Austin rush hours (7-9 AM, 4-7 PM) to preview commutes

Plan your visit like a house-hunting trip, not a vacation

You will need 3-5 days to tour neighborhoods and see homes. Schedule morning tours in your target neighborhoods, drive the commute routes during rush hour, eat lunch in the areas where you might live. Your agent should have a curated list ready before you arrive.

With homes sitting 50-60 days, you have more flexibility than in 2021. But have your pre-approval ready, know your price range, and be prepared to write an offer during or shortly after your visit. You can complete the rest of the process remotely.

• Block 3-5 days specifically for house hunting (weekdays are better for touring)
• Have your agent prepare a curated list of 8-12 homes before arrival
• Drive your potential commute during actual rush hours
• Walk the neighborhood in the evening, not just during a daytime tour
• Visit the nearest grocery store, gym, and restaurants to each neighborhood
• If you have kids, drive by the school during pickup/dropoff to see traffic and vibe

Know the Texas closing process (it is different from most states)

Texas closings go through title companies, not attorneys. Texas is a "wet funding" state, which means funds are disbursed on closing day. You typically get keys the same day, but there can be a few hours of waiting for the lender to release funds. Plan accordingly and do not schedule your movers for 9 AM on closing day.

• Texas is "wet funded": you get keys on closing day, but expect a few hours after signing for the lender to release funds
• Budget for a property survey ($400-$600) in addition to closing costs
• Ask the title company about remote notarization if closing from out of state
• Do not book movers for first thing on closing morning, give yourself the afternoon or next day for buffer

Your first week in the house: four things that cannot wait

• File homestead exemption within 30 days of closing (TCAD, WCAD, or HCAD)
• Get Texas driver's license within 30 days
• Register and inspect your vehicle within 30 days
• Set reminder to protest property tax assessment in April/May
• Set up Austin Energy / water / trash service