You closed on a Dallas house: what to do in the first year so you are not caught out

The first-year list in brief

In the first year after buying a house in Dallas, file your residence homestead exemption with the appraisal district, store your closing documents somewhere safe, change the locks and codes, read your homeowners insurance policy, learn the house's systems and set a seasonal maintenance routine, watch for the appraisal notice in the spring and protest it if the value looks wrong, and keep records of every improvement. None of it is complicated, but missing a deadline or a maintenance step can cost real money.

I am Andy Scott with Dave Perry-Miller Real Estate. After fifteen years helping buyers in Preston Hollow, the Park Cities and Lakewood, I have found that the questions new owners ask in the months after closing are remarkably consistent. My firm describes me as an advocate of taking care of clients for life, and in practice that means answering these questions long after the keys change hands. Here are the answers in one place.

The first week: keys, codes and paperwork

You do not know how many keys, garage remotes and alarm codes are still out there from previous owners, contractors and housekeepers. Assume the answer is several. Rekeying the locks and changing every code is inexpensive and one of the first things I recommend.

Then gather the paperwork. The title company will send your owner's title policy, and the deed will be recorded with the county. Keep those with your closing statement, survey, inspection reports, the seller's disclosure and any warranties that transferred with the house. You will want them for taxes, insurance claims and the eventual sale. A fireproof box or a scanned copy stored online works; what matters is that you can find everything in ten minutes when someone asks for it.

• Rekey exterior locks and reprogram garage openers
• Change alarm, gate and smart-device codes and passwords
• Find the main water shutoff, the gas shutoff and the electrical panel
• Store the closing statement, title policy, survey and inspection reports together
• Set up utilities, trash service and mail in your name

The homestead exemption: the most valuable form you will file

If the house is your principal residence, apply for the residence homestead exemption with the appraisal district in the county where it is located. The Texas Comptroller explains that school districts must provide a $140,000 exemption on a residence homestead, so a home appraised at $300,000 would be taxed for school purposes as if it were worth $160,000. Homeowners 65 or older or disabled may receive an additional $60,000 school exemption.

The Comptroller lists the general filing deadline as before May 1, and notes that if you acquire a property after January 1, you may receive the exemption for the rest of that tax year if the previous owner did not receive it. The application is Form 50-114, and the Dallas Central Appraisal District notes that filing a homestead exemption application with it is free. Be wary of mailers offering to file it for a fee.

When the appraisal notice arrives in the spring

Each spring the appraisal district may mail a notice of appraised value. Read it. If the value looks higher than what the house would sell for, or higher than similar homes nearby, you have the right to protest. The Texas Comptroller explains that the usual deadline is May 15 or 30 days after the appraisal district mails the notice, whichever is later, and that protests are heard by the appraisal review board.

Evidence wins protests, not frustration. The Comptroller lists the kinds of evidence that help, including photos of your property and comparable properties, repair estimates and sales documents such as closing statements, and it warns that you cannot simply tell the board the appraisal district is wrong. Your own purchase price is often strong evidence in the first year, especially if you bought below the appraised value.

If you would like recent comparable sales for your street to support a protest, or just want to know what your house would sell for today, I am happy to pull them for you.

Insurance: read the policy before you need it

Most buyers bind homeowners insurance in a hurry during the contract and never read the policy. Take an hour in the first month to read the declarations page and understand your deductibles, especially any separate deductible for wind and hail, which matters in North Texas. Confirm the dwelling coverage would rebuild the house at today's construction costs, not just match the loan amount.

Photograph or video every room and the contents of closets, and store the files somewhere outside the house. If your premium jumps at the first renewal, do not simply pay it; what to do when a homeowners renewal jumps explains how to review it with an agent.

Why your mortgage payment may change in year two

Many new owners are surprised when their monthly payment changes after the first year. If your lender collects property taxes and insurance through an escrow account, it reviews that account periodically and adjusts your payment to match the actual bills. When the first full tax bill or the insurance renewal comes in higher than the estimate used at closing, the account can run short, and the lender raises the payment to make it up.

You can soften that surprise. Once your homestead exemption is approved and your appraisal notice arrives, estimate the coming tax bill yourself and compare it with what your lender is collecting. If there is a gap, setting money aside early is easier than absorbing a jump later. Property tax bills generally go out in the fall and are due by the end of January, so the timing of the escrow review often follows that cycle.

If you pay taxes and insurance yourself rather than through escrow, put both due dates on your calendar now. Late property taxes carry penalties and interest, and a lapsed insurance policy can put you in breach of your loan.

A seasonal rhythm for a North Texas house

North Texas weather is hard on houses: long, hot summers, sudden storms with hail and high wind, and the occasional hard freeze. Clay soil that swells and shrinks with moisture affects foundations, and drainage around the house matters more than most new owners expect. A simple seasonal routine prevents most of the expensive surprises.

Watch where water goes during the first heavy rain. Water pooling against the foundation or pouring over gutters is worth fixing early; water over the gutter edge and pooling at the foundation explains the causes and fixes.

• Spring: service the air conditioning before the heat arrives and check the roof after storm season begins
• Summer: keep soil moisture around the foundation steady during dry spells and change HVAC filters often
• Fall: clean gutters, check drainage and service the heating system
• Winter: insulate exposed pipes, know how to shut off the water and protect outdoor faucets
• After any hailstorm: look for damage and photograph it before calling your insurer

The file that will help you sell one day

Every buyer eventually becomes a seller. Start a folder now, paper or digital, for every improvement and major repair: what was done, who did it, when, what it cost, and any permit or warranty. When the time comes to sell, those records help you price the house, answer buyers' questions and complete the seller's disclosure accurately. Your accountant may want the receipts too, because improvements can affect the tax calculation on a sale.

I see the difference this makes. Sellers who can hand a buyer a list of improvements with dates and invoices look organized and trustworthy, and that affects negotiation. If you want to know which projects tend to show up in the sale price, my guides on pricing a house before listing and what it costs to sell beyond the commission explain how buyers and appraisers look at improvements.

Projects worth doing now, and projects to wait on

Fix safety and water issues first: anything the inspector flagged about electrical, gas, roofing or active leaks. After that, I usually suggest living in the house through all four seasons before starting a major remodel. You will learn how you use the rooms, where the light falls and what actually bothers you, and the project you plan in month twelve is often different from the one you imagined at closing.

Before any significant work, check the permit rules for your city. Highland Park and University Park are separate municipalities from Dallas, each with its own requirements, so a contractor familiar with one may not know the other. A small project done without a required permit can surface years later, during your own sale, when a buyer's inspector or appraiser asks about it. Also review the deed restrictions and any owners association rules listed in your title commitment, which can limit fences, additions and exterior changes.

Staying in touch after the closing

Buying a house is not the end of the relationship with your agent, or it should not be. I check in with clients after they move in, help with appraisal protests when they ask, and send market updates when something on their street changes. About ninety percent of my business comes from past clients and the people they introduce, according to my firm's bio, and that only happens when the help continues after closing.

If you have bought recently and have a question about your exemption, your appraisal notice, a project or what your house is worth now, get in touch. If you are still searching, my guide to how Preston Hollow, the Park Cities and Lakewood differ is a good place to begin.

Questions people ask me