Sherman, Texas Cost of Living 2024: What to Expect When Buying a Home

 

Considering moving to Sherman, Texas? Understanding the Sherman Texas cost of living is crucial in making an informed decision. Sherman offers a unique blend of affordability and quality of life, with housing, utilities, and transportation costs often lower than the national average. Whether you’re relocating for work, family, or a fresh start, this guide will provide you with a comprehensive overview of what to expect financially in this vibrant Texas community.

Sherman Texas Cost of Living Key Takeaways

• Sherman is a rapidly growing city with a population of over 46,000 residents.
• The cost of living in Sherman is below the national average, making it an affordable choice for homebuyers.
• Sherman’s real estate market is diverse, offering options from historic homes to modern developments.

Overview of the Sherman Real Estate Market

Current Housing Trends

The real estate market in Sherman, Texas, is experiencing steady growth. As of mid-2024, the median home price in Sherman is approximately $268,000. This figure reflects a stable and affordable market, making Sherman an attractive destination for both first-time homebuyers and seasoned investors. Homes in Sherman typically sell within a reasonable time frame, providing opportunities for both buyers and sellers in a competitive market.

Average Home Prices

The median listing price for homes in Sherman, TX, is around $265,000. This affordability is one of the key factors driving the growth in Sherman’s real estate market. Buyers can choose from a wide range of properties, including charming historic homes in well-established neighborhoods and modern homes in newly developed communities.

Factors Influencing Market Dynamics

Several factors contribute to the dynamic real estate market in Sherman. The city’s strategic location near major highways, such as U.S. Highway 75, offers easy access to nearby cities like Dallas, making it an attractive location for commuters. Sherman’s thriving economy, bolstered by key industries such as manufacturing, healthcare, and education, continues to draw businesses and individuals to the area. Additionally, the presence of top-rated schools and a welcoming community atmosphere enhances Sherman’s appeal as a desirable place to live.

Cost Factors When Buying a Home

Property Taxes

Property taxes in Sherman are based on the assessed value of the property and are set by the county and city governments. The property tax rate in Sherman is approximately 2.15%, which is competitive compared to other cities in Texas. For a median-priced home of $265,000, property taxes would be around $5,340 per year.

Home Insurance Costs

Home insurance is an essential consideration for homebuyers in Sherman. The average cost of home insurance in Sherman is about $1,500 per year. This cost can vary based on factors such as the home’s location, age, condition, and the coverage options selected by the homeowner.

Closing Costs

Closing costs are fees associated with the purchase of a home, including appraisal fees, title insurance, and attorney fees. In Sherman, closing costs typically range from 2% to 5% of the purchase price of the home. For a median-priced home of $268,000, closing costs could range from $5,360 to $13,400.

Maintenance and Renovation

Maintenance and renovation are ongoing costs associated with homeownership in Sherman. Routine maintenance expenses, such as lawn care, pest control, and regular cleaning, should be budgeted for. Additionally, homeowners should be prepared for potential renovation costs, which can vary based on the age and condition of the home, as well as the homeowner’s preferences and priorities.

Financing Your Home Purchase

Mortgage Options

Sherman homebuyers have access to various mortgage options, allowing them to choose the financing that best suits their needs. Fixed-rate mortgages are popular due to their stability, offering a consistent interest rate throughout the loan term. Adjustable-rate mortgages (ARMs) have interest rates that may fluctuate over time, which can be advantageous in certain market conditions. Government-backed loans, such as FHA and VA loans, provide additional options for first-time buyers and veterans, often with lower down payment requirements.

Interest Rates

Interest rates play a significant role in determining the overall cost of a mortgage. The interest rate offered to a borrower depends on several factors, including credit score, loan amount, and down payment size. Generally, borrowers with higher credit scores qualify for lower interest rates. It’s important for buyers to shop around and compare rates from multiple lenders to ensure they receive the best possible deal.

Down Payment Expectations

The typical down payment for a home in Sherman is around 20% of the purchase price. However, some lenders offer loans with lower down payment requirements, such as 3% or 5%. Buyers who put down less than 20% may be required to pay for private mortgage insurance (PMI), which adds to the monthly mortgage payment.

Sherman Texas Cost of Living Expenses

Utility Costs

Utility costs in Sherman are competitive, with the average monthly utility bill for a standard home being approximately $150. This amount covers essential services such as electricity, water, and gas. Sherman’s mild climate and efficient utility infrastructure help keep costs manageable for residents.

Transportation Expenses

Transportation costs in Sherman are reasonable, with gas prices slightly below the national average. Public transportation options are available through the Texoma Area Paratransit System (TAPS), which provides bus services within the city and to neighboring areas. The average commute time for residents is around 20 minutes, making it convenient for those who work in nearby cities.

Groceries and Dining Out

Sherman offers a wide variety of grocery and dining options at affordable prices. Grocery costs in Sherman are generally lower than the national average, providing residents with access to quality food without breaking the bank. Dining out is also affordable, with casual meals ranging from $10 to $15 and more upscale dining experiences costing around $30 per person.

Healthcare and Education

Sherman provides excellent healthcare services, with several hospitals and medical facilities in the area. The cost of healthcare in Sherman is slightly below the national average, ensuring residents have access to quality medical care. Education is also affordable, with strong public and private schools and access to higher education institutions like Austin College and Grayson College.

Sherman Texas Neighborhoods and Community

Popular Residential Areas

Sherman features diverse residential areas, each offering a unique blend of amenities and home styles. Popular neighborhoods include Heritage Ranch, a master-planned community with parks, trails, and commercial spaces, and Turtle Creek, known for its family-friendly atmosphere and beautiful homes. These neighborhoods provide residents with a strong sense of community and access to various amenities, making them ideal for families, young professionals, and retirees.

Education in Sherman Texas

Sherman is home to several top-rated school districts, including the Sherman Independent School District, which is known for its quality education and comprehensive extracurricular programs. The district offers a range of educational opportunities, from elementary to high school, ensuring that students receive a well-rounded education. Additionally, Sherman is home to Austin College, a prestigious liberal arts college, and Grayson College, which provides various associate and bachelor’s degree programs.

Sherman Texas Parks and Recreation

Sherman boasts 16 parks and recreational facilities, providing residents with plenty of opportunities for outdoor activities. Herman Baker Park offers hiking trails, picnic areas, and a scenic lake for fishing and boating. Pecan Grove Park is another popular destination, featuring sports fields, playgrounds, and walking trails. Additionally, Lake Texoma, one of the largest lakes in Texas, is just a short drive away and offers opportunities for boating, fishing, and camping.

The Home-Buying Process in Sherman

1. Determine Your Budget

   Review your finances, including your income, savings, and credit score. Contact a mortgage lender to get pre-approved for a loan, which will give you a clear idea of what you can afford.

2. Find a Real Estate Agent

   Partner with Amanda  Phillips, a local real estate expert to guide you through the buying process and help you find properties that meet your criteria.

3. Start House Hunting

   Identify your priorities, such as location, size, and amenities, and tour homes that fit your needs with your real estate agent.

4. Make an Offer

   Work with your agent to submit a competitive offer on your chosen property. Be prepared for some negotiation with the seller on price and terms.

5. Get a Home Inspection

   Hire a qualified home inspector to assess the property’s condition and identify any potential issues. Review the inspection report with your agent and decide if you want to proceed with the purchase or negotiate repairs.

6. Secure Financing

   Finalize your mortgage by submitting a loan application and providing necessary documents to your lender. The lender will conduct an appraisal and underwriting process to approve your loan.

7. Close the Deal

   Review all closing documents carefully before signing. Pay any remaining closing costs, and once everything is signed and payments are made, you’ll receive the keys to your new home.

8. Move In & Celebrate

   Plan your move by scheduling movers and setting up utilities for your new home. Enjoy the process of settling into your new space and start making it your own.

Future Projections for Sherman Texas Real Estate

Sherman’s real estate market is expected to continue its steady growth, driven by Sherman Texas cost of living factors such as affordability, location, and quality of life. As the city develops and attracts more residents, demand for housing is likely to increase, which could lead to a moderate rise in home prices. However, Sherman is expected to remain an attractive and affordable option for homebuyers compared to larger cities in Texas.

Overall, Sherman offers a vibrant community with affordable living costs and numerous amenities, making it an ideal place to call home. Whether you’re a first-time buyer or looking to relocate, Sherman provides a welcoming environment with opportunities for growth and a high quality of life.