Buying your first home in 78704 feels exciting and a little intense. You want the lifestyle, the walkability, and the quick access to Zilker Park and South Congress, but you also hear the market moves fast. This guide shows you the exact steps to prepare your financing, tour with purpose, choose between a condo and a single‑family home, and write a competitive offer without guesswork. You will walk away with a clear plan that fits 78704 and puts you in position to win. Let’s dive in.

Why 78704 stands out

78704 covers some of Austin’s most desirable south‑central neighborhoods, including Zilker, South Congress, Travis Heights, Bouldin Creek, and parts of South Lamar and Barton Hills. You get close access to Lady Bird Lake, Zilker Park, and Barton Springs, plus a lively dining and arts scene. That mix of lifestyle and location drives consistent demand.

Inventory here skews toward older bungalows, renovated cottages, and small‑lot infill homes, along with a healthy share of condominiums and townhomes. Newer builds often aim for smart density on narrower lots. Because lot supply is limited and demand is steady, you should expect stronger competition and quicker sales than Austin’s broader market in many cycles.

Zoning, neighborhood plans, and overlay districts can shape what you can do with a lot, including the potential for accessory dwelling units. If you want future flexibility, plan ahead and verify current City of Austin rules before you buy.

Build your budget and pre‑approval

Pre‑approval vs pre‑qualification

A full written pre‑approval from a local lender is essential in 78704. It goes beyond a quick pre‑qualification by verifying your income, assets, and credit, which gives sellers confidence that you can close. When multiple offers come in, a strong pre‑approval can be the edge that moves your offer to the top of the stack.

Loan options for first‑time buyers

• Conventional loans: Common in 78704 with down payments starting around 3 to 5 percent, plus private mortgage insurance when you put less than 20 percent down.
• FHA loans: Lower minimum down payment and flexible credit, but condos must meet FHA project approval if you plan to finance a unit.
• VA loans: For eligible veterans, with zero‑down options.
• Local assistance: The City of Austin and Travis County periodically offer down‑payment, closing cost, and homeowner education programs with income and price limits. Check official city and county pages for current availability.

What to gather for lenders

Have your recent pay stubs, W‑2s for the last two years, bank statements, and identification ready. If you are self‑employed, lenders commonly request tax returns. Review your credit early to correct errors. Also plan for closing costs, earnest money, inspections, HOA reserves if applicable, and move‑in expenses.

Set a realistic 78704 budget

Factor in your full monthly carry: principal and interest, Travis County property taxes, homeowner’s insurance, and any HOA dues. If a property sits near a creek corridor or the lake, consider possible flood insurance needs. Older homes can have higher maintenance, so keep a reserve for repairs or updates.

Choose a local lender

Use a lender experienced with Travis County closings and Austin valuations. Local lenders help you move quickly, understand condo project approvals, and can speak the same language as listing agents and title companies. That reduces process risk and makes your offer more compelling.

Tour 78704 like a pro

Prioritize by lifestyle

• If walkability and nightlife are top priorities, focus your search near South Congress.
• If park access and outdoor time matter most, look in Zilker or near Barton Springs.
• If you prefer a quieter street feel and more yard, consider Travis Heights and parts of Bouldin Creek and South Lamar.

Move fast on showings

When a good home hits in 78704, it can draw quick attention. Be ready to tour the same day or next day, and stay in tight contact with your agent so you can pivot quickly. Open houses are useful, but private showings help you move decisively.

What to look for on site

• Single‑family homes: Check foundation and drainage, roof age, HVAC age, plumbing type, electrical updates, and signs of water intrusion or wood‑destroying insects. If you hope to add an ADU, note lot size and setbacks.
• Condos and townhomes: Evaluate the unit plus common areas for deferred maintenance. Look at exterior walls, roofs, balconies, parking, and any elevators. Ask about HOA reserves and major building projects.

Flood risk check

In south‑central Austin, properties near Lady Bird Lake and creek corridors can carry flood considerations. Review the applicable flood maps and discuss insurance with your lender and insurance provider. Even outside a high‑risk zone, lenders may call for coverage based on property specifics.

Use inspections and specialists

Plan a general home inspection at minimum. For older bungalows or heavily renovated homes, you may want add‑on inspections, such as roof, pest, sewer scope, foundation, or structural. For condos, a condo‑focused checklist and careful HOA review are smart moves.

Neighborhood context\0a0checks

Visit at different times of day to gauge parking, traffic, construction activity, and evening noise along certain corridors. Confirm proximity to the places you will use most, like grocery and transit options.

Condo vs single‑family in 78704

Lifestyle tradeoffs

• Single‑family homes give you land, control over the exterior, and room to expand. They usually come at a higher price point and more hands‑on maintenance.
• Condos offer an easier first step into 78704 with exterior maintenance handled by the HOA and often shared amenities. Monthly HOA dues and building rules are part of the trade.

Financing rules to know

HOA dues count in your debt‑to‑income ratio and affect your purchasing power. FHA and VA loans require that the condo project meet specific eligibility standards. Conventional loans also consider owner‑occupancy and investor concentration limits, which can affect underwriting in some buildings. Always verify project eligibility early.

Insurance differences

Condo owners typically carry an HO‑6 policy that covers the interior and personal property, while the HOA maintains a master policy on the building as defined by the declarations. Single‑family owners carry a standard homeowner’s policy that covers the dwelling and site improvements. Flood insurance is separate and depends on flood maps and lender requirements.

Maintenance, risk, and resale

In a sought‑after area like 78704, demand has historically been strong for single‑family lots due to land scarcity. That said, well‑run condos can appreciate and offer a more accessible entry. For condos, pay close attention to the HOA’s reserves, special assessment history, and planned capital projects to understand risk and resale potential.

Write a winning offer

Pre‑offer essentials

• A full pre‑approval letter from a reputable local lender.
• Proof of funds for earnest money and any appraisal gap coverage.
• Comfort with a clean, readable contract and a realistic timeline.

Terms that add strength

• Price: In multiple offers, strong pricing matters. Stay within your comfort zone.
• Earnest money: A higher deposit can signal commitment, but balance it with your liquidity needs.
• Closing date: Match the seller’s preferred timing when possible.
• Inspection period: A shorter window can help you compete. Do not waive inspections without understanding the risks.
• Appraisal tools: Appraisal gap coverage and escalation clauses are common in hot spots. Use them carefully and cap your exposure.

Non‑price signals

A clean contract with fewer demands, flexibility on possession or a short seller rent‑back, and professional communication can set you apart. Some buyers consider personal letters. If you choose to write one, avoid any content that touches on protected classes and follow your agent’s and brokerage’s policies.

Balance risk with guidance

Removing contingencies or promising an appraisal gap can improve your odds, but they increase your risk. Discuss the tradeoffs with your agent and lender before you commit, and only move forward with terms you fully understand and can support.

Due diligence to closing

HOA and condo documents

Request the resale certificate, current budget, reserve study, meeting minutes from the last year, information on any litigation, and a list of planned major repairs. Confirm owner‑occupancy and investor ratios if your loan type requires it.

Inspections and repairs

In competitive situations, sellers may push back on large repair credits. Focus on health and safety items and major systems. If needed, set clear repair limits in the contract and consider credits for known issues.

Appraisal and valuation

Fast‑moving comps can lead to appraisal shortfalls. Before you offer, prepare a plan for potential gaps, including negotiating options, bringing cash to cover a shortfall, or contesting the appraisal with data if justified.

Title, survey, and site details

Work with a reputable title company. In older neighborhoods, easements and encroachments can appear on surveys. Also plan for tree preservation rules that may limit future changes on some lots.

Closing day prep

Confirm wired funds with the title company, line up your homeowner or condo insurance policy, and plan utility transfers and move logistics. A smooth close in 78704 comes from early coordination and tight communication.

Quick checklists

Pre‑search checklist

• Get a full pre‑approval from an experienced local lender.
• Gather proof of funds for earnest money and closing costs.
• Set a maximum purchase price and monthly budget including taxes, insurance, and any HOA dues.
• Define must‑have vs nice‑to‑have features, like yard, parking, and park or downtown proximity.

Touring checklist

• Foundation, drainage, roof, HVAC age, plumbing and electrical updates.
• Lot lines and setbacks for future projects.
• Parking and street activity at different times.
• HOA common areas and building condition for condos.
• Flood risk and insurance estimates.

Offer checklist

• Include pre‑approval letter and proof of funds.
• Match the seller’s preferred closing date when possible.
• Choose an earnest money amount that shows strength and fits your liquidity.
• Confirm inspection period length, appraisal gap language, and any escalation clause with your agent.
• Note any seller concessions or rent‑back needs.

Closing checklist

• Review HOA documents and resale certificate.
• Complete inspections and repair negotiations.
• Secure homeowner or condo insurance and confirm flood needs.
• Coordinate funds and timeline with the title company.
• Schedule utilities and moving logistics.

Work with a local advocate

Buying in 78704 rewards preparation, speed, and smart negotiation. A local advisor helps you spot value, avoid pitfalls, and structure a clean, persuasive offer the first time. With a consultant‑style approach and strong negotiation training, you can move with confidence from pre‑approval to keys in hand.

If you are ready to start, reach out to Cody Hobza. You get boutique, research‑backed representation with premium service at every price point.

FAQs

How competitive is 78704 for first‑time buyers?

• 78704 is often more competitive than the broader Austin market due to location and limited inventory, so expect faster sales and, at times, multiple offers.

Are condos a better entry point in 78704?

• Condos can offer lower purchase prices and reduced exterior maintenance, but HOA dues, building reserves, and financing rules can affect affordability and eligibility.

What happens if my appraisal comes in low in 78704?

• You can try to renegotiate price, bring cash to cover a shortfall, exit if your contract allows, or challenge the appraisal with data if your lender supports it.

How much should I offer over list price?

• There is no universal rule. Base your strategy on recent comps, seller priorities, and tools like escalation clauses or capped appraisal gap coverage, within your budget.

Do personal buyer letters help in multiple offers?

• They may help some sellers, but follow fair housing guidelines and your agent’s policy. Avoid any references to protected classes or personal demographics.