When most buyers think about purchasing a home, the first question is usually:

“How much do I need for a down payment?”

That’s important — but it’s only part of the picture.

If you’re planning to buy a home in Waco, Midway ISD, China Spring, Woodway, Hewitt, or Robinson, it helps to understand the full financial landscape before you start looking seriously.

Here’s what the real cost of buying looks like.

1. Down Payment

Depending on the loan type, many buyers put down anywhere from 3% to 10%. Some put down more. Some qualify for 0% down programs.

The key is choosing a number that works with your overall financial plan — not just hitting an arbitrary percentage.

2. Closing Costs

This is the piece many buyers underestimate.

Closing costs typically range from 2% to 5% of the purchase price. These can include:

• Lender fees

• Title insurance

• Escrow fees

• Appraisal

• Recording fees

• Prepaid property taxes and insurance

In some cases, buyers can negotiate seller concessions to help offset part of these costs. That depends on market conditions and the specific property.

3. Earnest Money

Earnest money isn’t an extra cost — it’s a deposit that applies toward your purchase.

In Waco, this is often 1% (sometimes less, sometimes more depending on price range). It shows the seller you’re serious and is credited back at closing.

4. Inspection and Option Fees

You’ll typically pay for:

• A home inspection

• Possibly additional inspections (foundation, roof, HVAC, etc.)

These are paid upfront and are part of due diligence. They’re small relative to the overall purchase, but important to plan for.

5. Moving and Setup Costs

This part doesn’t get talked about enough.

After closing, buyers often face:

• Utility deposits

• Minor repairs or updates

• Furniture

• Moving expenses

Keeping cash reserves available is smart — especially for first-time buyers.

6. The Monthly Payment

Your monthly housing cost includes more than just principal and interest.

It typically includes:

• Property taxes

• Homeowners insurance

• Possibly PMI (if putting less than 20% down)

• HOA dues (if applicable)

Property taxes in McLennan County vary by location and exemptions, so it’s important to estimate those correctly before committing.

What This Means for Buyers in Today’s Market

The Waco market has shifted into a more balanced environment. Buyers often have more room to negotiate than they did a couple of years ago.

That can mean:

• Negotiating seller concessions

• Asking for repairs

• Structuring the deal strategically

But it still requires preparation. The smoothest transactions happen when buyers understand the full financial picture from the beginning.

The Bottom Line

Buying a home isn’t just about the down payment. It’s about understanding the full cost structure and making sure it fits your life and your long-term plans.

If you’re thinking about buying in Waco or surrounding areas and want to walk through real numbers based on your situation, that’s a conversation worth having early.

Clear expectations make the process much smoother.

How to Price Your Home in Waco in Today’s Market

Pricing a home correctly in Waco right now requires more precision than it did a few years ago.

The market is not distressed. It is not collapsing. But it is more balanced. Buyers have more options, and they are more price-sensitive than they were during the peak frenzy years.

That means pricing strategy matters again.

Here’s how I think about it when advising sellers in Waco and surrounding areas like Woodway, Hewitt, Robinson, Lorena, and Midway ISD.

1. Start With Recent Comparable Sales — Not Active Listings

The most common mistake sellers make is pricing based on what other homes are listed for.

Active listings represent aspiration.
Closed sales represent reality.

In today’s market, buyers are watching price per square foot closely. They are comparing your home to what has actually sold in the last 60–90 days — not what someone else hopes to get.

If similar homes in your area have been selling between $285,000 and $300,000, listing at $325,000 “to see what happens” is usually not a strategy. It’s a delay.

2. Adjust for Condition Honestly

Buyers are far less willing to “pay ahead” for updates they will need to do themselves.

If your home:

• Has an older roof

• Needs flooring replacement

• Has dated kitchens or baths

• Needs exterior paint

• Has foundation history

Those factors will affect buyer perception and offers.

That does not mean you must remodel everything. It does mean price must reflect condition.

In balanced markets, homes priced correctly for their condition still sell.

3. Pay Attention to Days on Market Trends

One of the biggest signals right now in Waco is time.

If homes in your price range are taking:

• 45–60 days to sell

• Seeing price reductions before going under contract

That’s telling you something.

Overpricing almost always results in:

1. Longer market time

2. A price reduction

3. Final sales price lower than if it had been positioned correctly at the start

Strategic pricing is about momentum.

4. Understand Buyer Psychology

Buyers search in price brackets.

For example:

• $250,000–$275,000

• $275,000–$300,000

• $300,000–$325,000

If your home should realistically sell for $299,000 but you price it at $305,000, you may lose exposure to an entire buyer pool.

Small pricing decisions affect search visibility online.

5. The First Two Weeks Matter Most

In Waco’s current environment, the first 10–14 days on the market are critical.

That’s when:

• Your listing is new

• Buyers who have been waiting are watching

• Showings are most active

If you miss the market in those first two weeks, the home often begins to feel “stale,” even if nothing is wrong with it.

Pricing correctly from day one protects that initial window.

6. Avoid Emotional Pricing

Your home is personal.
The market is not.

Buyers are comparing:

• Location

• Condition

• Layout

• Lot size

• Updates

• Competing inventory

They are not factoring in:

• What you originally paid

• How much you’ve invested

• How much you “need” from the sale

Those are important to you — but not to the market.

So What Is the Right Strategy Right Now?

In most Waco neighborhoods today, the winning formula is:

• Price within the realistic comparable range

• Adjust honestly for condition

• Avoid testing the market high

• Preserve the first two weeks of exposure

Homes priced well are still selling.

Homes priced aggressively are sitting longer and often adjusting later.

The goal is not to “list high and negotiate down.”
The goal is to position correctly and attract serious buyers early.

Brian and Ashley Bundy are REALTORS® with Bundy Realty Group at Bentwood Realty serving Waco and surrounding communities including Woodway, Hewitt, Robinson, Lorena, McGregor, Crawford, and Midway ISD.

Waco Housing Market Update – January 2026

As we move through the early part of the year, the Waco housing market is beginning to show clearer signals about what 2026 may look like. January’s data offers a helpful snapshot of where things stand and how the market is continuing to shift locally.

This update is based on the most recent completed month of data for the Waco MSA and reflects trends we’re seeing across Waco, Midway ISD, Woodway, Hewitt, and surrounding areas.

Waco Market at a Glance (January 2026)

Here’s what the latest data shows:

• Median home price: $285,000
  Up 4.1% compared to January last year

• Active listings: 1,341 homes
  Up 25.8% year over year

• Closed sales: 166 homes
  Down 7.8% from last January

• Time to sell:
  About 100 days on market, plus an average of 32 days to close

• Months of inventory: 5.3 months
  Up from 4.3 months a year ago

How to Read These Numbers

The biggest takeaway from January’s data is that the Waco market is continuing to move toward a more balanced pace.

Inventory has increased meaningfully compared to last year, which gives buyers more options and less urgency than we’ve seen in recent years. At the same time, prices have held up reasonably well, rising modestly rather than accelerating quickly.

Homes are taking longer to sell, which means pricing and preparation matter more than they did a couple of years ago. The market is no longer forgiving of overpricing, but well-positioned homes are still moving.

This is a steadier, more deliberate market — one that rewards good planning and realistic expectations on both sides.

What This Means for Buyers

For buyers, this market offers more breathing room.

With more homes on the market and fewer bidding-war situations, buyers can slow down, compare options, and make decisions with greater clarity. Negotiation is more common, and buyers are often able to focus on value rather than speed.

That said, good homes that are priced correctly still attract attention. Being prepared financially and working with accurate local data remains important.

What This Means for Sellers

The market still supports sales, but the strategy matters more now.

Pricing your home correctly from the start and presenting it well are critical. Homes that are priced too aggressively tend to sit longer and often require price reductions later. Homes that are positioned realistically tend to move more smoothly, even in a slower-paced environment.

What This Means for Homeowners

Even as the market normalizes, home values in Waco have remained relatively steady. This continues to provide a solid foundation for long-term planning, whether that means selling, refinancing, or simply staying informed about your equity position.

The Bottom Line

January’s data points to a housing market that is calmer, more balanced, and more predictable than the extreme conditions of recent years.

This environment tends to favor people who are informed and intentional, rather than reactive.

If you’d like a local snapshot for your specific neighborhood, price range, or situation, that’s where the most meaningful insights come from. Market conditions can vary significantly even within the same city.

Want a Local Snapshot for Your Home or Neighborhood?

If you’re curious what this market looks like for your specific area in Waco or the surrounding communities, feel free to reach out. A quick, neighborhood-level view often tells a much clearer story than headline numbers alone.

One of the most common things I hear from buyers in Waco is:

“We’re waiting until we have 20% down.”

Sometimes that’s a great plan. But a lot of times, it’s based on a misunderstanding.

Do you actually need 20% down?

No. In most cases, you don’t.

There are several loan programs that allow:

• 3% to 5% down for conventional loans

• 3.5% down for FHA loans

• 0% down for VA and USDA loans (if you qualify)

The right option depends on your credit, your income, and your long-term plans.

Why people think they need 20%

The 20% number comes from one main thing: avoiding PMI (private mortgage insurance). PMI isn’t “bad,” but it is an extra monthly cost. Some buyers prefer to avoid it. Others decide it’s worth paying in order to buy sooner.

The real question isn’t “How much can I put down?”

The better question is:

“What’s the smartest way to use my cash?”

In many cases, buyers are better off:

• Keeping some cash in reserves

• Not draining savings completely

• Leaving room for moving costs, furniture, or repairs

What this looks like in Waco

In the Waco and Midway ISD area, many first-time and move-up buyers are putting down somewhere between 3% and 10%, not 20%. Some do more. Some do less. The key is matching the strategy to your situation.

When a bigger down payment does make sense

• If you’re trying to keep your payment as low as possible

• If you’re buying a higher-priced home

• If you’re using sale proceeds from another house

• If you’re close to 20% anyway

Bottom line

You probably don’t need as much down as you think. The right number is the one that fits your finances, your comfort level, and your plans.

A good lender and a good local agent should be helping you model different scenarios—not just pushing one number.

Don’t Automatically Skip That House That’s Been Sitting on the Market in Waco

If you’re house hunting in the Waco area — whether in Midway ISD, Woodway, Hewitt, or Robinson — you’ve probably noticed that some homes sell quickly while others seem to linger on the market longer than expected.

Most buyers scroll right past those.

It’s a natural reaction. The assumption is usually that if a home hasn’t sold yet, something must be wrong with it. But in today’s Waco real estate market, that’s often not the case. In fact, some of the best opportunities right now are coming from homes that have been sitting on the market a little longer.

Let me explain why.

Why Some Homes Sit Longer (And It’s Not Always a Bad Reason)

A home can stay on the market for reasons that have nothing to do with the condition of the house:

• It was priced too high when it first came on the market

• The photos or marketing didn’t do it justice

• The timing was bad because of holidays, school schedules, or market shifts

• The seller had unrealistic expectations at first

• The home just needs the right buyer, not any buyer

None of these automatically mean the home is a bad purchase. Often it simply means the listing missed the mark when it first hit the market.

Price Adjustments Can Create Real Opportunities

In Waco right now, pricing matters more than it did a couple of years ago. We’re seeing more sellers adjust their expectations after being on the market for a while. That usually means:

• Price reductions

• More flexibility in negotiations

• Sometimes concessions like closing costs or interest rate buydowns

A home that looked overpriced sixty days ago might be one of the best values available today. And because these homes have been sitting longer, buyers often face less competition and have more room to negotiate.

Inventory Is Still Tight in Many of Waco’s Most Popular Areas

In areas like Midway ISD and Woodway, good homes are still in relatively short supply. So when a house sits longer than average, it does not automatically mean:

• Something is wrong with it

• It will not appraise

• It has hidden issues

Sometimes it simply means it was priced wrong, marketed poorly, or listed at the wrong time.

This Is Where Having a Local Agent Makes a Difference

The real question is not how long a home has been on the market. The better question is why it has been on the market.

When I look at a home for my clients, we dig into:

• The pricing history

• Recent comparable sales in the neighborhood

• How it compares to current competition

• Whether the seller is likely to be flexible

Sometimes a listing that has been sitting turns out to be a strong value or a good negotiating opportunity. Other times, it confirms that it is one to skip. Either way, having the right local context makes all the difference.

A Waco-Specific Perspective

If you see a home in Midway ISD, Woodway, Robinson, or Hewitt that has been on the market longer than expected, do not automatically rule it out.

Instead, ask:

• Has the price been adjusted?

• How does it compare to recent sales nearby?

• Was it marketed well from the start?

• Is the seller open to negotiation?

In many cases, those homes end up being some of the better opportunities in the market.

A Smarter Way to Look at These Listings

In today’s Waco market, the number of days a home has been on the market is not a verdict. It is just one piece of information.

Sometimes it means there is a real issue. Other times, it simply means the home missed the mark on pricing or marketing early on. Some of the best values I am seeing right now are coming from homes that other buyers overlooked.

If you want, I am happy to run the numbers on any home you are curious about, show you how it compares to recent sales, and give you an honest opinion on whether it is a good opportunity or one to skip.

Just send me the address or listing and I will take a look.

— Brian

When it comes to purchasing a home, there are many factors to consider. One of the most important factors that can significantly impact your buying power is the current interest rates. Interest rates play a crucial role in determining the overall cost of your home and can have a profound effect on your monthly mortgage payments. In this blog post, we will explore how interest rates can affect your home purchase and what you can do to navigate this aspect of the home buying process.

First and foremost, it's important to understand what interest rates are and how they work. Interest rates are essentially the cost of borrowing money from a lender. When you take out a mortgage to purchase a home, you are borrowing money from a lender, and the lender charges you interest on the loan. The interest rate is expressed as a percentage of the total loan amount and can vary based on a variety of factors, including market conditions and the borrower's creditworthiness.

The most obvious way that interest rates can impact your home purchase is through the total cost of the loan. A higher interest rate means that you will pay more in interest over the life of the loan, which can add up to a significant amount of money. For example, a 1% difference in interest rates on a $300,000 mortgage can result in over $50,000 in additional interest payments over the life of a 30-year loan.

Interest rates also affect your monthly mortgage payments. Higher interest rates mean higher monthly payments, while lower interest rates mean lower monthly payments. This can have a big impact on your budget and how much home you can afford. For example, with a 30-year fixed-rate mortgage, a 1% increase in interest rates can increase your monthly payment by over $100.

So, what can you do to navigate the impact of interest rates on your home purchase? The first step is to stay informed about current interest rates and market conditions. Interest rates can fluctuate based on economic factors, so it's important to keep an eye on the market and be prepared to act quickly if rates are favorable.

Additionally, you can work to improve your credit score to qualify for lower interest rates. Lenders use your credit score to determine your creditworthiness, and borrowers with higher credit scores are typically offered lower interest rates. Paying down debt, making payments on time, and avoiding new credit inquiries can all help improve your credit score and qualify you for better interest rates.

In conclusion, interest rates play a significant role in your home purchase and can have a big impact on your overall cost and monthly payments. By understanding how interest rates work and taking steps to improve your creditworthiness, you can navigate this aspect of the home buying process and make informed decisions about your home purchase. 

Twice a year, we embark on a quirky ritual that involves setting our clocks forward or backward by one hour. It's like we're playing an elaborate game of time-travel hopscotch. So, why do we do it? What's the reasoning behind this clock-jumping extravaganza? In this blog post, let's dive into the history of Daylight Saving Time (DST) while sprinkling in some humor, because, why not?

The Birth of Daylight Saving Time

So, who do we have to thank for this semi-annual clock-confusion ballet? Benjamin Franklin, of course! In 1784, he suggested that we could all benefit from a little extra daylight in the evening by moving the clocks forward. Although he didn't have Instagram back then, we can imagine him hashtagging it as #MoreSunsets, and maybe even posting a selfie with a kite.

The Energy Saving Argument

Daylight Saving Time was the brainchild of a time-traveling Ben Franklin. During World War I, nations realized they needed to conserve fuel. So, they decided to fool the clocks. "Hey, Mr. Clock, you're not hungry for coal anymore!" they exclaimed as they advanced the hours. It was like the clocks were on a diet, and they lost an hour.

The Energy Saving Argument: Does it really work? Well, if you ask your grandparents, they might say, "Back in my day, we saved so much energy that our toasters doubled as space heaters!" Today, though, it's a bit more complicated. With energy-efficient LEDs, Nest thermostats, and smart homes, the numbers don't add up quite the same. We've got Ben Franklin shaking his head, saying, "I should've invented the smartphone instead."

Economic and Social Benefits

Longer daylight hours mean more time for people to empty their wallets in retail stores. Retailers call it the "Glow-in-the-Dark Effect" because shoppers are more likely to buy things when they can actually see what they're purchasing. Plus, it's a scientific fact that ice cream tastes better when consumed outdoors in broad daylight.

Improved Mental and Physical Well-being

With DST comes more daylight for outdoor activities. And let's face it, even though we might grumble when we lose an hour of sleep, we all secretly relish the thought of more evenings spent frolicking outside. But don't forget the sunscreen, or you'll be telling people you turned a nice shade of "lobster red."

Challenges and Controversies

While Daylight Saving Time is all sunshine and rainbows, it's not without its hiccups. The time-shift can mess with our internal body clocks, leaving us all walking around like zombies for a week. 

Oh, and let's not forget the joy of dealing with time zone differences. "I'm calling the meeting at 2 PM... my time!" If you've ever scheduled a conference call with someone halfway around the world, you know the struggle is real.

Conclusion

Daylight Saving Time is like that oddball cousin who insists on bringing their pet ferret to family gatherings. We may not always understand it, and it might create chaos, but it's been with us for over a century. As we navigate the quirks and challenges of DST, we can't help but appreciate the extra daylight, sunny days, and the opportunity for a little laughter along the way. Whether you love it or loathe it, Daylight Saving Time is a time-honored tradition, and like a good comedy, it continues to bring smiles and occasional groans to our lives.

So this Saturday turn your clocks to "fall back" yet again.