Buying a Home in Waco, TX

A step-by-step guide from Ike Lee, REALTOR®

Buying in Waco is very doable on a normal budget, but the price on the listing is only part of the cost. Texas property taxes, insurance and the way Texas contracts work catch a lot of buyers off guard, especially people moving in from out of state.

This guide walks through the whole process in the order it actually happens: getting approved, choosing where to live, budgeting the real monthly cost, making an offer, and getting to the closing table. I'm Ike Lee, a REALTOR® with Coldwell Banker Apex, and I help buyers in Waco, Woodway, Hewitt, Lorena, McGregor and China Spring.

The Waco market right now

Buyers have more room to negotiate than they did a few years ago. In the first half of 2026, Waco-area homes sold for a median of about $285,000, prices were flat year over year, and homes took about 69 days to sell (Redfin data via KKYX).

About five to six months of supply is close to a balanced market. In practice, that means time to compare homes, and room to ask for repairs or seller-paid closing costs on homes that have sat a while. The best-priced homes in popular areas still move fast.

Step 1: Get pre-approved before you tour

A pre-approval tells you what you can actually spend and makes your offer believable to a seller. Talk to at least two lenders, and compare the loan estimate line by line: rate, points, lender fees and the estimated monthly payment.

• Conventional loans can go as low as 3% down for some first-time buyers.
• FHA loans allow 3.5% down with more flexible credit.
• VA loans for eligible veterans and service members can mean no down payment.
• Ask each lender about down payment assistance programs available in Texas.

Make sure the payment estimate includes taxes and insurance. In Texas those can add a lot to the monthly cost (Step 3).

Step 2: Choose where to live

Waco and the towns around it feel very different, and the school district changes both your tax bill and your resale value.

School district lines don't always follow city limits, so always confirm the district for the exact address before you make an offer.

Step 3: Budget for the real monthly cost

Texas has no state income tax, so property taxes do more of the work, and they're the cost buyers most often underestimate. Inside the City of Waco and Waco ISD, the combined rate has been about $2.25 per $100 of value (Waco Economic Development).

Rates change every fall. McLennan County has proposed raising its rate to about $0.395 for the coming year (KWTX). Outside Waco ISD the school rate differs: Midway ISD, which serves Woodway and Hewitt, adopted $0.9089 for 2026 (Midway ISD).

What it means for a typical home. On a $285,000 home in Waco ISD, with the homestead exemption, a rough estimate is about $5,000 a year, or about $415 a month. Without the exemption it's closer to $6,400 a year. This is an estimate before any local exemptions, so always check the actual tax history on the home you're considering.

File your homestead exemption. If the home is your main residence, Texas school districts must exempt $140,000 of its value from school taxes, plus another $60,000 if you're 65 or older or disabled. Filing is free through the McLennan County Appraisal District, and the deadline is April 30 for a home you live in on January 1 (Texas Tribune). If the seller already had an exemption that year, yours starts January 1 of the next year.

Insurance. Central Texas gets hail and severe storms, so homeowner's insurance can cost more than buyers from other states expect. Get quotes during your option period (Step 4), not after, and ask about the roof's age and any wind or hail deductible.

Flood zones. Some areas near the Brazos and Bosque rivers and local creeks sit in flood zones, where lenders require flood insurance. Check the address on FEMA's flood map before you make an offer.

Step 4: Make an offer that works in Texas

Most Texas home purchases use the standard contract forms from the Texas Real Estate Commission (TREC). A few pieces of that contract matter most to buyers:

• Option period and option fee. You pay the seller a small, negotiable fee for a set number of days to inspect and back out for any reason. It's your most important protection, so don't make it too short.
• Earnest money. This deposit goes to the title company and counts toward your purchase at closing. You can lose it if you back out after the option period for a reason the contract doesn't cover.
• Seller concessions. In a market with five months of supply, it's often reasonable to ask the seller to cover some closing costs or repairs. I'll show you what similar homes actually sold for so your offer is grounded in comps, not the list price.

Step 5: Inspect, appraise and clear title

Use your option period well:

1. Inspection. Hire a licensed inspector, and add a roof, foundation or sewer-line check where the home calls for it. Waco's clay soils make foundation questions common.
2. Insurance quotes. Lock in coverage now (Step 3).
3. Negotiate repairs or a price change before the option period ends.

After that, the lender orders an appraisal. If it comes in below your price, we renegotiate, or you cover the gap. The title company checks for liens and issues title insurance. A survey shows the lot lines, and an existing survey from the seller can sometimes be reused.

Step 6: Close and get your keys

With a loan, closing usually takes 30 to 45 days from the signed contract. Before closing you'll do a final walk-through, wire your funds (always confirm wiring instructions by phone with the title company, never from an email alone), and sign at the title company.

After you move in

• File your homestead exemption as soon as you're eligible (Step 3).
• Keep your closing documents and title policy somewhere safe.
• Watch for your appraisal notice each spring. If the value looks high, you can protest it with the appraisal district.

Thinking about buying in Waco?

I focus on the parts that cost buyers money when they're rushed: the loan, the comps and the negotiation. I'll help you compare areas, estimate the real monthly cost of each home before you fall for it, and write an offer backed by what similar homes actually sold for.

Call or text me at 310.480.0471, or email ikeleerealtor@icloud.com.

Ike Lee, REALTOR® · Coldwell Banker Apex, REALTORS® · TX License 838963-SA

Market figures and tax rates change. This guide is general information, not legal, tax or lending advice. Confirm current figures for any specific home.

Sources (checked Oct 28–29, 2026)

• Waco mid-year housing market review (Redfin data), KKYX, Aug 3, 2026
• Tax rates by entity, Greater Waco Economic Development
• McLennan County proposes first property tax rate increase in years, KWTX, Jul 31, 2026
• Midway ISD adopts lower tax rate for 2026, Midway ISD
• How to apply for the Texas homestead exemption, Texas Tribune, Oct 20, 2026
• Notice about 2026 tax rates, City of Waco (2026 city rate not final when checked)