OHA Market Update Series - May 1, 2025
National: Closing costs can catch homebuyers off guard, but with a little planning and knowledge, you can avoid surprises at the closing table. By understanding the fees involved and exploring options like seller concessions or first-time buyer assistance, you'll be better prepared for this final step in the homebuying journey.
Local: Property tax appraisals in Travis and Williamson Counties have risen, with Travis County seeing an average increase of 3.4% and Williamson County 6.3%. If you feel your appraisal is too high, you can protest it for free, and we’re here to help – join us at our Comps and Cocktails event on Thursday, May 8 to get personalized assistance! 🏡💬
Intrigued? Keep reading.
(4 minute read)
National Real Estate Update
Housing Trends, Interest Rates, and Market Forecasts
Don’t Let Closing Costs Catch You Off Guard—Here’s What Every Homebuyer Should Know
So, you’ve saved for your down payment, found the one, and you’re getting ready to make it official. 🏡 But wait—before you pop the champagne, let’s talk about something that catches way too many buyers off guard: closing costs.
These behind-the-scenes fees are like the “fine print” of homeownership—easy to overlook, but super important to understand. The good news? A little planning goes a long way, and I’m here to help you feel totally prepared.
First up: What are closing costs?
Think of closing costs as the grand finale of your homebuying journey. It’s the bundle of fees you’ll pay at the closing table to officially make that home yours. Some of these are tied to your mortgage (like loan origination and underwriting), while others cover important services like your appraisal, title search, and insurance.
Depending on the home price, these costs usually fall somewhere between 2% and 7% of the purchase price. So for a $449,000 home, you’re looking at an extra $9,000 to $30,000+. Yep—it adds up fast!
Here’s what might be on your closing cost checklist:
📝 Loan origination + processing fees
🔍 Appraisal + inspection
🔐 Title search + title insurance
📄 Recording + legal filing fees
🏦 Escrow fees + prepaid taxes/insurance
🤝 Buyer + seller agent commissions (if not covered elsewhere)
But wait—there’s more: the sneaky stuff
Even with a good estimate, some fees can still pop up late in the game. These “surprise” charges might include:
HOA transfer or document fees
Move-in/out deposits for condos or co-ops
Rush fees for last-minute paperwork
Vague “processing” or “convenience” fees (aka junk fees 😒)
Pro tip: If something doesn’t make sense or seems inflated, ask questions. A great agent (hi! 👋) and a savvy mortgage lender can help catch—and often reduce—unnecessary fees.
Buying in a condo or HOA? Read the fine print
If you’re purchasing in a managed community, be prepared for a few extra charges like:
Board application fees (for co-ops)
HOA transfer or initiation fees
Flip taxes (usually for sellers—but sometimes negotiated)
They’re usually manageable, but it’s better to know now than get surprised later.
Can you write off closing costs on your taxes?
Not most of them, unfortunately. BUT—there are a few bright spots:
Mortgage interest
Property taxes
Discount points (if you paid them)
These may qualify for deductions, especially during your first few years of ownership. Talk to your tax pro and save those receipts!
“I’m already stretching—what if I can’t cover closing costs?”
You’re not alone—and there are creative solutions:
Ask the seller for a concession (they may cover part of your costs)
Explore lender credits (a slightly higher interest rate in exchange for fewer upfront fees)
Look into first-time buyer assistance programs (yes, they really exist!)
We’ll talk through what’s best for your budget, long-term plans, and comfort zone.
Bottom line: Don’t fear the fine print
Buying a home is a huge step, and yes, there are a lot of moving pieces—but you don’t have to navigate them alone. My job is to make sure you feel empowered, informed, and excited—not stressed out or blindsided by surprise fees.
Keep a little cushion in your budget, ask questions early and often, and trust the process. You've got this. 💪
And when you're finally holding those keys? Every penny will feel worth it.
OHA’s HOT TAKE:
1. Avoid last-minute stress
Too often, buyers get to the finish line and are surprised by thousands of dollars in additional fees they didn’t budget for. Knowing what to expect early on prevents panic, delays, or even lost deals.
2. Protect your budget
Closing costs can add 2–7% to your purchase price. That could mean tens of thousands of dollars you need to have available on top of your down payment. Having a clear picture helps you shop within your true budget and make smarter decisions.
3. Gain negotiation power
When you understand what fees are standard and which ones are negotiable, you can work with your agent to negotiate seller concessions, lender credits, or even request certain charges be waived. Knowledge = leverage.
4. Prevent overpaying
Some closing fees—like “processing” or “document prep” charges—can be inflated or unnecessary. Knowing what’s typical gives you the power to question vague charges and potentially save money.
5. Plan for long-term financial success
Buying a home is a huge investment. Being clear on all the costs upfront means no surprises that could derail your savings, emergency fund, or monthly cash flow. And with the right planning, you’ll feel confident—not stretched too thin—when you get the keys.
Ready to make your home-buying journey smoother? Let’s chat about how you can navigate closing costs and hidden fees like a pro! Reach out today for personalized advice and tips on how to save and prepare. Your dream home is closer than you think!
Austin Area Real Estate & Community Update:
Market Trends, Local News, and Neighborhood Insights
Understanding Property Tax Appraisals in Travis and Williamson Counties: What You Need to Know 🏡💰
Spring is here, and with it comes the arrival of property tax appraisals in Travis and Williamson Counties. Many homeowners have already received their appraisals, either by mail or online. Whether you're excited or anxious about the numbers, it's important to stay informed and understand what these appraisals mean for you and your wallet. 📬
The Numbers: How Have Appraisals Changed? 📈
In Travis County, residential property tax appraisals have increased by an average of 3.4%. The median market value for a homestead is now $519,677, and the median taxable value is $401,879. Meanwhile, in Williamson County, residential property values rose by 6.3% on average. 🏠💵
What Does This Mean for You? 🤔
While these numbers might seem like small increases, they can add up when it comes to your property taxes. In Texas, the appraised value of a homestead (your primary residence) can only increase by 10% per year. Additionally, homesteads are eligible for a $100,000 discount on school taxes, which often make up the largest portion of your tax bill. If you live in your home as your primary residence, it's important to check that this exemption is applied to your appraisal notice. ✔️
Other exemptions are available for homeowners who are 65 or older, disabled, or qualify as a disabled veteran or the surviving spouse of a disabled veteran. 🎖️
Austin's Tax Rate 💸
In Austin, the proposed property tax rate for the 2024-2025 fiscal year is $0.4776 per $100 in Travis County. This marks a 34% increase from the 2021-2022 rate, so it’s something you should keep an eye on as you assess your total property tax bill. 📊
What to Do If You Feel Your Appraisal is Too High? 🛑
If you feel that your property tax appraisal is overvalued, you can protest your taxes for free through your county’s website:
Travis County: Protest Information
Williamson County: Protest Information
You can also hire a service to help with your protest for a fee. Some trusted services include:
Need Help? We're Here for You! 🤝
Navigating property taxes can be confusing, but you don’t have to do it alone! If you’re unsure about how to protest or need guidance on the process, we’ve got you covered. We’re hosting a Comps and Cocktails Event 🍹 on Thursday, May 8th, from 3 pm - 7 pm at our office located at 1204 Salina St, Austin, TX 78702. This event is a great opportunity to get personalized assistance with your property tax protest and ask any questions you may have. 📅
Don’t forget to sign up in advance and provide your address information so we can prepare to help you! 📝
OHA’s HOT TAKE:
Property tax appraisals can feel overwhelming, but by understanding the process and knowing your options, you can take control of your tax situation. Whether you're protesting your appraisal or making sure you're getting all the exemptions you're entitled to, it's essential to stay proactive. We’re here to help guide you every step of the way! 💪
Sign up for our Comps and Cocktails Event today – we can’t wait to see you there! 🙌
Jennifer Carey
Realtor and Agent Success Manager at Open House Austin, real estate investor, and renovation enthusiast with Wimberley Airbnbs. She loves mid-century modern design, hiking Austin with her dogs, yoga, and exploring creative hobbies like painting, pottery, and embroidery. 🎶✨
