A Bell County Homebuyer's Due Diligence Guide: What to Research Before You Make an Offer

Finding a home you love is exciting, but before you decide what to offer, it’s always worth taking a closer look at what comes with the property. The house itself is only one piece of the decision. Schools, taxes, insurance, flood risk, property restrictions, nearby development and other factors can have a significant impact on your experience as a homeowner.

The good news is that buyers have access to more information than ever. Many of the most useful resources are public, objective and directly available to potential buyers.

As real estate agents, we can help you understand the purchase process, identify questions to investigate, and provide information about the property and transaction. However, a good agent abides by Fair Housing Laws and knows that some questions cannot and should not be answered — particularly those involving neighborhood safety, demographics, schools or other characteristics, as this could lead to steering. That’s why we direct buyers with questions about these factors to conduct their own research through independent sources and come to their own conclusions — ones they feel comfortable with.

Here are some of the most useful places to start.

Research the Schools

If schools are important to your home search, go directly to the source.

The Texas Education Agency (TEA) provides school and district information through TXschools.gov, including accountability ratings, academic performance, enrollment, attendance, class-size information and other data. TEA's School Report Cards and Texas Academic Performance Reports can provide substantially more information than a simple school rating.

Also visit the school district's own website. You can learn about boundaries, calendars, programs, transportation, campus information and other details that may not appear in statewide reports.

Good resources:

Texas Education Agency (TXschools.gov)
The individual school district's website
The specific campus website

If school assignment is important to your decision, verify the property's current attendance boundaries directly with the school district. Boundaries and policies can change.

Research Crime and Public Safety

“Is this a safe neighborhood?” is an understandably common question, but safety is subjective, and a real estate professional's personal opinion about an area's safety could potentially result in steering.

Instead, buyers should conduct their own research using objective sources.

Start with the local police or sheriff's department. Many law enforcement agencies publish crime maps, incident reports or other public safety information. You can also review the Texas Department of Public Safety's Sex Offender Registry, which provides publicly available registration information.

It is also worthwhile to visit the area yourself at different times of day and on different days of the week. Pay attention to traffic, noise, lighting, nearby businesses, road conditions and anything else that matters to your household.

The goal is not to determine whether an area is simply “good” or “bad.” It is to gather information and decide whether the property and surrounding area meet your needs.

Check Flood Risk

Flood risk is an especially important consideration in Texas, even when a property does’t appear to be near a major body of water.

The FEMA Flood Map Service Center is the official source for National Flood Insurance Program flood hazard information. You can search a property and review the applicable flood map and related information.

A flood map is only one piece of the puzzle. Read the Seller’s Disclosure Notice for the property, ask questions about previous flooding or storm damage, and talk with an insurance professional about the property's insurability and potential flood coverage if necessary.

Remember that standard homeowners insurance generally does not cover flood damage, so understanding the property's risk before making an offer can be important.

Look at Property Taxes and Appraisal Information

Texas property taxes can be a significant part of the cost of owning a home.

Bell County Appraisal District is one of the best sources for researching a property's assessed value, exemptions and property information. The Texas Comptroller provides a statewide directory to help you locate the appropriate appraisal district and tax office.

The Comptroller also publishes tax-rate information for school districts, cities, counties and special districts.

When reviewing the current tax bill, remember that the seller's tax situation may not be the same as yours. Exemptions can change when ownership changes, so buyers should consider what their own projected taxes could look like rather than simply relying on the seller's current bill.

Investigate the Property Itself

Before making an offer, review all available information about the property, including the Seller's Disclosure Notice.

In Texas, the seller's disclosure requirements are addressed by state law, and either the Texas REALTORS® and TREC Seller's Disclosure Notice forms are used in residential transactions. The notice asks the seller to disclose information about the property's condition and history, including matters such as previous flooding, structural problems, roof condition, plumbing, electrical systems, HVAC, previous repairs and other known conditions or material defects.

Depending on the property, you may also want to investigate:

Previous repairs or renovations
Age and condition of major systems
Foundation history
Roof and HVAC age
Septic systems and private wells
Drainage and irrigation
Easements
Restrictions and covenants
Homeowners associations
Zoning or land-use restrictions
Planned roads or nearby development
Utility providers and availability

Some of this information may require contacting the appropriate city, county, utility provider, homeowners association or other authority.

Get an Insurance Quote Before You Commit

Insurance costs can vary considerably from one property to another. The age of the roof, construction materials, location, claims history, flood exposure and other characteristics can affect both availability and cost.

Consider contacting an insurance agent before you make an offer, particularly if the property has characteristics that could make coverage more complicated.

The Consumer Financial Protection Bureau specifically recommends getting an informal insurance estimate before committing to a home, particularly when a property may have elevated risk.

A surprisingly high insurance premium can change the affordability of a home even when the purchase price fits your budget.

Know What You're Agreeing To

Finally, remember that due diligence doesn't end when your offer is accepted.

Once under contract, buyers may need to meet deadlines related to inspections, financing, title, insurance and other contractual requirements. A title company will investigate the property's title, and buyers should carefully review documents provided during the transaction.

Owner's title insurance is another consideration. Unlike lender's title insurance, which protects the lender, an owner's policy can protect the buyer's financial interest in the property against covered title problems.

A Good Buyer is an Informed Buyer

There's no single website that can tell you whether a particular home is right for you. The best approach is to combine several reliable sources and investigate the factors that matter most to your household.

Your real estate agent is an important resource throughout that process. A knowledgeable agent can help you understand the transaction, identify questions to ask and point you toward appropriate sources of information while respecting Fair Housing requirements.

Ultimately, the goal of due diligence is to make sure you have gathered enough reliable information to make an informed decision before you put your name on an offer or purchase the property.

Ready to Start Your Home Search?

Buying a home is a big decision, and good preparation can make the process feel much more manageable. Whether you're searching for a home in Salado, Belton, Temple or elsewhere in Bell County, our team is here to help you navigate the process, understand your options and know what questions to ask along the way.

At CENTURY 21 Bill Bartlett, we've been helping buyers and sellers throughout Salado and Central Texas since 1973. We believe an informed buyer is an empowered buyer, and we're here to provide the experience, local knowledge and guidance you need from your initial search through closing.

Ready to explore your options? Connect with our team and let's start your search!