Homebuyer's Guide:

During the homebuying process, buyers must be prepared to pay fees associated with the lender, title company, and inspections. Before finalizing your budget, ensure to discuss these potential expenses with your lender and incorporate them into your overall financial plan.

Home Inspection - Approximately $500
Wood Destroying Insects Inspection (WDI)* - Approximately $90
The WDI inspection is mandatory for VA loans* and may be required for FHA loans.
Septic Inspection - Approximately $225 - $475+
Well Water Testing - Approximately $100
Foundation Inspection - Approximately $150
Pool Inspection - Approximately $100
Chimney Inspection - Approximately $500
As an informed buyer, it's your responsibility to carefully examine your potential new home's condition and to identify any potential issues with qualified inspectors prior to closing.

It's advisable to accompany the inspectors during the inspections and address any questions directly to them.

As a big fan of fireplaces, I recently attended a seminar conducted by chimney professionals, and I was shocked by what I learned. The construction of fireplaces and the surrounding elements (framing, electrical, insulation, ductwork, etc.) can be quite concerning, even in new constructions. While your home inspector will look at the fireplace, please note that they are not chimney specialists. Their inspection covers only the basics. I highly recommend scheduling a chimney inspection if a chimney is present. It costs about the same as a home inspection and is essential for ensuring fire safety.

Home Warranty - Approximately $580-660
Many sellers agree to provide a credit for a home warranty, offering added peace of mind for homebuyers. While a home warranty is not mandatory for a buyer to finalize a home sale, it's common for buyers in this area to opt for a home warranty, even if the seller doesn't cover the cost.

Title Policy
This is the insurance policy that protects the lender (and the buyer, if desired) against any defects in the title of the property. The cost of the title policy varies depending on the purchase price of the home and the location. In Bell County and Coryell County, it's typically paid for by the Seller and is an essential part of the closing process.

Survey - Approximately $400-$1,000
A survey will be required to verify, clarify, correct, or create a legal description. A survey is a professional on-site measurement of a property’s lot lines and the dimensions that make up its boundaries. The survey includes the location of any improvements (such as buildings or other structures) on the lot, any encroachments that may exist, and any easements of public record.

In Bell County and Coryell County, sellers typically provide an existing survey unless there have been changes to the property boundaries. If a new survey is required, sellers generally cover the cost, as it's a crucial aspect of the closing process.

Credit Report Fee - Approximately $85

Appraisal Fee - Approximately $600
An appraisal is different from a home inspection and does not replace it. Appraisals estimate the property's value for lenders and are required to ensure its marketability.

Property Taxes
Depending on the timing of your purchase (beginning or end of the year), you may need to pay property taxes upfront or prorate them at closing.

Homeowner's Insurance (HOI) - Approximately $1,700
Proof of homeowners insurance is typically required by most lenders prior to closing, as it impacts your monthly mortgage payment.

HOA Fees
If the property is part of a homeowners association, you may need to pay HOA fees upfront or prorate them at closing.

Utility Setup Fees
You may need to pay fees to set up utilities in your name, such as electricity, gas, water, and internet.

Moving costs
Don't forget to budget for the expenses associated with moving into your new home, such as hiring movers or renting a truck.

What school district is the property within?

Be sure of the attendance zones for the property you're looking to purchase.

Are there any crime concerns in that area?

I have a large truck, boat, trailer and/or travel trailer. What should I know? 

Does the property require flood insurance?

It's important to understand that flood damage is typically not covered by most homeowners insurance policies, irrespective of whether you reside in a high-risk zone or not. Surprisingly, if you live in an area with low or moderate flood risk, you're five times more likely to encounter flood damage than fire damage in your home within the next 30 years. Fortunately, you can safeguard your home and possessions by securing flood insurance through the National Flood Insurance Program. Many homeowners can obtain this type of insurance for less than $400 per year.

I'm interested in making the property a short-term rental. What do I need to know?

Are thre any substantial changes that could lead to eminent domain?

Before finalizing your property purchase, it's crucial to conduct a thorough city search to identify any pending property changes in the vicinity. Keep an eye out for any substantial developments that could potentially lead to eminent domain actions. This proactive approach ensures that you're well-informed about any potential risks or changes that could affect your property investment.

Should I invest in a property located in farm and ranch country? Does the property qualify for any government subsidies?

When dealing with properties situated in farm and ranch country, it's wise to engage with key local resources to gain valuable insights. Start by reaching out to the Agri-Life Extension Agent and representatives from the Farm Services Agency (FSA). The FSA office can provide access to historical aerial photographs of area properties dating back to the 1940s. Additionally, they can offer information on whether the property qualifies for any government subsidies.

Another valuable step is to visit local farm implement dealers like John Deere or Kubota, feed and seed supply stores, lumber yards, hardware stores, and oil and gas landmen in the area. These local contacts often have a wealth of knowledge about the land, its history, and potential opportunities or challenges associated with it. By tapping into these resources, you can make more informed decisions about your property investment in farm and ranch country.

Is the property within a Groundwater Conservation District (GCD) jurisdiction?

Visiting the Texas Water Development Board website and the Texas Commission on Environmental Quality (TCEQ) website can provide valuable maps indicating the jurisdiction of local Groundwater Conservation Districts (GCDs) over groundwater resources in the state. These maps offer insight into the regulatory framework governing groundwater usage in your area.

If your property is situated near a watercourse like a creek, river, or stream, it's advisable to consult the TCEQ website to determine if there are any existing water rights associated with the property, particularly for irrigation or industrial purposes. Additionally, engaging with local water well drillers can offer valuable insights into both the quantity and quality of available water resources.

GCDs often maintain comprehensive websites containing valuable information such as contact details, regulations, and by-laws. These online resources are readily accessible to the public and offer detailed insights into groundwater management practices and policies. Determine if the groundwater rights to the property are in the jurisdiction of a GCD by reviewing the Map of Texas GCDs. 

To gain a thorough understanding of groundwater regulations and exemptions pertinent to your property and its surroundings, it's essential to engage directly with the GCD's general manager and staff. These discussions can provide valuable insights into various aspects, including water usage restrictions, conservation measures, and any exemptions that may apply.

Proactively reaching out to the GCD enables you to acquire a deeper understanding of how groundwater resources are managed in the area. This includes familiarizing yourself with specific regulations or policies that could impact your property. Armed with this knowledge, you can ensure compliance with local regulations and make informed decisions regarding water usage and conservation practices on your property.

Lastly, don't overlook the importance of speaking with the local electrical power company. Inquiring about easements, metering issues, and future expansion plans can help you better understand any potential impacts on your property and ensure you're fully informed about all relevant considerations.

Where can I access information on active and inactive water rights and water use data?

You can find comprehensive GIS information and water rights data files through the Texas Commission on Environmental Quality (TCEQ). These files contain details about all active and inactive surface water rights permits and water supply contracts. You'll be able to access information about the water right holder, basin, authorized water amount, and more. This data allows you to review surface water rights holders in the state and gather essential information about a property's surface water rights.

I'm dedicated to networking with top-notch local contractors and service providers to address all your CTX real estate needs. From searching listings to negotiating and closing, your success in Central Texas real estate is my commitment. If you're eyeing a home to transform into your dream space, let's chat!