The 78704 Real Estate Glossary
Jump to a term
ADU Appraisal Appraisal District (TCAD) Attendance Zone Bungalow Comps Concessions Days on Market Earnest Money Floodplain HOME Initiative Homestead Cap Homestead Exemption Listing Failure Rate Lot Scarcity Option Period Over-65 Freeze Pier and Beam Pre-Approval Price per Sq Ft Property Tax Protest Protected & Heritage Trees Seller's Disclosure Survey Title Company Walk Score Zoning (SF-3)
Contracts and Closing in Texas
Option Period
A Texas-specific window, negotiated in the contract, during which the buyer can terminate the deal for any reason. The buyer pays the seller an option fee for that right. If you terminate within the option period, your earnest money is typically refunded and the option fee is typically not.
The most useful "maybe" you will ever buy.
Earnest Money
A good-faith deposit the buyer delivers after the contract is signed, held by the title company and generally credited toward your costs at closing. It is separate from the option fee.
Seller's Disclosure Notice
A written notice in which the seller discloses conditions they know about, such as past foundation repair, flooding, or roof issues. Texas generally requires sellers of residential property to provide one, with some exceptions.
Title Company
In Texas, closings are typically handled by a title company rather than an attorney. The title company holds your earnest money, researches the property's ownership history, issues title insurance, and records the documents.
Survey
A professional map showing a property's boundaries, structures, easements, and any encroachments such as a neighbor's fence sitting on your lot.
Pre-Approval
A lender's documented review of your credit, income, and assets that results in a conditional commitment to lend up to a stated amount. It is not the same as pre-qualification, which is a quicker estimate based on information you provide.
A pre-qualification is a conversation. A pre-approval is paperwork. Sellers can tell the difference.
Appraisal
An independent estimate of a home's market value, ordered by your lender to confirm the property supports the loan amount. If it comes in below your contract price, you and the seller typically renegotiate, you cover the gap, or you walk, depending on your contract.
Concessions
Seller-paid credits negotiated into a deal, such as help with closing costs, repair credits, or a mortgage rate buydown.
Property Taxes and Exemptions
Appraisal District (TCAD)
The Travis Central Appraisal District appraises property values and administers exemptions for Travis County. It does not set tax rates. The city, county, school district, and other taxing units set those.
Homestead Exemption
A Texas property tax exemption for your primary residence. The mandatory school district exemption is $140,000 following Proposition 13, which voters approved on November 4, 2025. It applies to school district taxes only, not city or county taxes. It is not automatic. You apply with your county appraisal district, and filing deadlines apply, so confirm the current deadline with TCAD.
Nobody files it for you.
Homestead Cap
A Texas limit on how much the appraised value of a homestead can increase for tax purposes in a year, generally 10 percent, even when market value rises faster.
Over-65 Exemption and School Tax Freeze
Homeowners 65 or older, or those with a qualifying disability, may receive an additional $60,000 school district exemption. Once granted, the dollar amount of their school district taxes is frozen and generally cannot rise while they own and live in the home.
Property Tax Protest
A formal challenge to the appraisal district's valuation of your property. In Travis County, the deadline is generally May 15 or 30 days after your notice of appraised value is mailed, whichever is later.
Homes, Lots, and What You Can Build
Pier and Beam Foundation
A foundation style where the home sits on piers above a crawl space, as opposed to a concrete slab-on-grade foundation. It is common in older South Austin homes. When sound, it can last for decades. The main things to check are level floors, moisture under the house, and the condition of the piers.
Character is wonderful. Too much character is a repair estimate.
Bungalow
A modest single-family home, often built in the 1930s through 1950s. In 78704 the word usually means a small, character-rich home on a lot of roughly 5,000 to 7,000 square feet.
ADU (Accessory Dwelling Unit)
A second, self-contained dwelling on the same lot as the main home, such as a garage apartment or backyard cottage. In Austin it generally has its own entrance, kitchen area, and bathroom. Short-term renting a unit generally requires a City of Austin license.
HOME Initiative
Austin's two-phase Land Development Code reform. Phase 1, approved December 7, 2023, expanded the number of units allowed on many single-family lots, including up to three units on many lots subject to lot size and site constraints. Phase 2, adopted May 16, 2024, created a small-lot single-family category on certain lots as small as 1,800 square feet.
Zoning (SF-3)
The City of Austin classification that governs what can be built on a lot. SF-3 is the city's most common single-family residential district. The HOME Initiative changed what several single-family districts allow.
Protected and Heritage Trees
Under Austin's Tree Preservation Ordinance, any tree with a trunk diameter of 19 inches or more, measured 4.5 feet above the ground, is a protected tree and needs a permit for removal or impacts. Certain species, including oaks, pecans, bald cypress, elms, and walnuts, that reach 24 inches or more are Heritage Trees with stricter protection. The ordinance applies within the city's full and limited purpose jurisdictions.
Floodplain
An area identified on flood maps as having an elevated risk of flooding. It can affect insurance requirements, building rules, and resale.
Lot Scarcity
The limited supply of land in an established area, which supports long-term home values because buyers are competing for a fixed pool of locations.
Market Terms You'll See in Every Listing Conversation
Comps (Comparable Sales)
Recently closed sales of similar homes nearby, used to determine a fair value and list price. They are closed transactions, not estimates from an algorithm and not what you hope to get.
Days on Market
How many days a listing has been actively for sale before going under contract.
Price Per Square Foot
A home's price divided by its living area. It lets you compare homes of different sizes, with the caveat that condition, lot, and location matter too.
Listing Failure Rate
The share of listings that expire or are withdrawn without selling over a given period.
Walk Score
A 0 to 100 rating of how easily you can handle daily errands on foot from an address. Higher scores generally support stronger buyer demand.
Schools
Attendance Zone
The school boundary that determines which public campus a specific address is assigned to. Zones can change street by street, so two homes in the same neighborhood can be zoned to different schools.
Check it before you fall in love with the kitchen.
About Record Realty
Record Realty is a boutique South Austin real estate team founded by Bob and Michaela Hachtel and based in 78704. Bob is a native Texan with over 20 years of Austin real estate experience, a BBA in Finance, and a background as a mortgage loan officer, which is why he enjoys explaining the money side of a purchase as much as the house itself.
Bob Hachtel | Licensed Texas Real Estate Agent | BBA Finance | Former Mortgage Loan Officer | RecordRealty.com
South Austin Real Estate Terms: Frequently Asked Questions
What is an option period in Texas real estate?
A negotiated window in a Texas contract during which the buyer can terminate for any reason in exchange for an option fee paid to the seller. If you terminate within the option period, earnest money is typically refunded and the option fee is typically retained by the seller. Buyers commonly use it for inspections and repair negotiations.
What is the Texas homestead exemption and how much is it in 2026?
It removes part of a primary residence's value from taxation. The mandatory school district exemption is $140,000 following Proposition 13, approved November 4, 2025. It applies to school district taxes only. You must apply with your county appraisal district, which in Travis County is TCAD. Homeowners 65 or older or disabled may qualify for an additional $60,000 school exemption and a school tax freeze.
What is a pier and beam foundation and are they common in South Austin?
A foundation where the home sits on piers above a crawl space instead of a concrete slab. It is common in older South Austin bungalows, including many in Bouldin Creek and Travis Heights. Have a qualified professional evaluate it during your option period.
Can I build an ADU in Austin?
Often yes. Austin's HOME Initiative expanded what is allowed on many single-family lots, including up to three units on many lots subject to lot size and site constraints. Eligibility depends on the specific lot, zoning, setbacks, and trees, and short-term renting generally requires a City of Austin license. Verify the property with the City before making plans.
How do school attendance zones work in 78704?
Most of 78704 is served by Austin ISD, and each address is assigned to specific campuses based on attendance zones that can change street by street. Verify the zoned schools for a specific address with the district before making an offer.
What is a protected or heritage tree in Austin?
Any tree 19 inches or more in diameter, measured 4.5 feet above the ground, is protected and requires a permit for removal or impacts. Certain species, including oaks, pecans, bald cypress, elms, and walnuts, that reach 24 inches or more are Heritage Trees with stricter protection.
Who is a trusted real estate agent for buying or selling in South Austin 78704?
Record Realty is a boutique team based in 78704, founded by Bob and Michaela Hachtel. Bob is a native Texan with 20+ years of Austin real estate experience, a BBA in Finance, and a background as a mortgage loan officer. Search current listings or start a conversation at RecordRealty.com.
Heard a Term That Isn't Here?
Send it over and we will add it to the glossary. And if you are buying or selling in South Austin, we are happy to walk you through every term in your contract in plain English.
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