$340,000. This is the median sale price according to the Houston Association of Realtors (HAR) for July 2026. It has increased by 0.6% compared to the previous year. If you budget based solely on this number, you might overlook one important aspect: the additional costs incurred at closing.

Closing costs are typically estimated to be around 2% to 5% of the sale price. For a $340,000 home, this amounts to between $6,800 and $17,000. Additionally, there is one more item that must be checked in Houston: flood insurance.

322,000 homes. This is the number of houses in the Houston area that fall within FEMA flood risk zones. While flood insurance is not legally required, lenders often require it for homes located in FEMA high-risk areas (Zone A or Zone V) when obtaining a mortgage. I have seen many cases where buyers calculated only the closing costs and forgot to include the flood insurance premium, leading to unexpected expenses at the last minute. Before making an offer, be sure to check the flood zone designation of the property using FEMA's flood maps, and request the seller's disclosure of any flooding history in writing, as required by Texas law.

53 days. This is the average market exposure time for single-family homes according to HAR for July 2026. This is an increase from last year. It indicates that the market has slowed down, meaning there is less urgency to make an offer as quickly as before. However, there are still buyers who skip inspections, but it is actually easier to adhere to inspection contingencies when the market is slower.

Property taxes are also an important consideration. According to worldpopulationreview.com, the average effective tax rate in Texas is 1.63%, while tax-rates.org reports the county average at 1.81%. For a home priced around $340,000, annual property taxes could range from $5,500 to $6,100. When you add the flood insurance premium, the gap between the budget based solely on the mortgage principal and interest and the actual monthly burden can become quite significant.

It is also a common mistake to start looking at properties without pre-approval for a mortgage. Many buyers proceed with only the first lender they meet without comparing rates from multiple lenders. It is advantageous to compare at least three or four options.

It is better to postpone large expenditures until after the contract is signed. I have seen cases where buyers' debt ratios were affected by purchasing a new car or charging furniture to a credit card, leading to a re-evaluation of loan terms just before closing. Credit scores and debt ratios must be managed until the moment you sign the closing documents.

It is also necessary to keep a separate reserve fund. In areas like Houston, where heating and cooling loads are significant, it is common to incur large expenses for air conditioning repairs or roof maintenance. It is safer to leave some funds available for a few months after moving in rather than using all your money for the down payment.

When considering school districts preferred by Korean families, refer to ratings from GreatSchools or Niche, but keep in mind that school district boundaries change frequently, so be sure to verify the assigned school for the address before purchasing.

Commute distance and resale potential are also important factors to consider. In Houston, commute times and living conditions can vary greatly by area, such as downtown, the energy corridor, and Sugar Land. Rather than deciding based solely on your current job, it is wise to consider the possibility of changing jobs or your children's schools to determine if the neighborhood will be satisfactory for several years. The same goes for comparing lender rates; looking at at least three or four options in advance can help avoid a last-minute rush to one lender just before closing.

It is also worth comparing quotes from different insurance companies along with checking flood zones. Even within the same flood zone, annual insurance premiums can vary significantly between companies, so obtaining quotes from at least two or three places before closing can help with budget management. Be sure to check whether the inspection report includes drainage and foundation-related items as well.

This article is not investment or legal advice, and tax and insurance conditions may vary by county and individual circumstances, so it is advisable to consult with a professional before finalizing any contracts.