Top 10 Things to Know About Buying in Terrell, TX

Thinking about buying in Terrell, TX? You're not alone. Nestled just 30 miles east of Dallas in Kaufman County, Terrell is drawing buyers from across the Metroplex who want more space, lower prices, and a genuine sense of community — without losing access to the city they love. With a median home value hovering around $274,000–$285,000 and a growing infrastructure, buying in Terrell, TX is quickly becoming one of the smartest real estate moves in North Texas.

Whether you're a first-time homebuyer, a growing family relocating from Dallas, or an investor looking for value, this guide covers the 10 most important things to know before making your move.

Quick Overview: Top 10 Things to Know About Buying in Terrell, TX

1. The Real Estate Market in Terrell, TX — a buyer-friendly market with strong inventory
2. Home Prices and Affordability — median prices significantly below DFW averages
3. Location and Proximity to Dallas — ~30 miles east via I-20
4. School Districts and Education — Terrell ISD serves nearly 5,000 students
5. Neighborhood Types and Communities — from historic charm to new construction
6. Property Taxes in Kaufman County — effective rate of ~1.42% with homestead benefits
7. New Construction vs. Resale Homes — active builder activity including major new projects
8. Cost of Living Comparison — housing costs run ~35% below the national average
9. Local Amenities, Infrastructure & Growth — Ben Gill Park, healthcare, and a $3B development
10. Working With a Local Real Estate Agent — why local expertise changes everything

1. The Real Estate Market in Terrell, TX

How the Market Works

The Terrell real estate market is currently classified as "somewhat competitive," scoring 45 out of 100 on Redfin's Compete Score. As of early 2026, the median home sale price sits around $190,000–$285,000 depending on the data source and time period measured, with homes typically spending 60–80 days on market. That's longer than peak DFW markets — and for buyers, that's a distinct advantage. You have time to think, negotiate, and shop.

Inventory has been growing, with over 200 homes for sale in Terrell at any given time. Homes are generally selling at about 5% below list price, meaning buyers have room to negotiate — a refreshing change from the frenzied bidding wars seen in Frisco or Plano.

Why This Matters to Buyers

A less competitive market gives first-time buyers and relocators a real shot at homeownership without the pressure of waived inspections or escalation clauses. If you're buying in Terrell TX, you're entering a market that currently rewards preparation over speed — making it ideal for buyers who want to do their due diligence.

Market Insight: Homes in Terrell sell for an average of 5% below list price — a meaningful savings on a $280,000 home is roughly $14,000 back in your pocket at closing.

2. Home Prices and Affordability

What Homes Cost in Terrell, TX

Terrell offers some of the most accessible home prices in the DFW Metroplex. The Zillow Home Value Index places the typical home value at approximately $274,365. Redfin reports a median sale price near $190,000 for recent transactions, while Homes.com cites a broader average around $334,000 for all listed inventory. In practical terms, buyers in the $200,000–$320,000 range can find move-in-ready 3-bedroom, 2-bathroom homes — often with larger lots than anything comparable in closer-in suburbs.

New builds in active communities are entering the market in the $280,000–$380,000 range, while established resale neighborhoods offer solid value starting in the $180,000s. For buyers coming from the Austin or DFW core, the price-to-square-footage ratio in Terrell is striking.

How Affordability Compares to Dallas

Housing expenses in Terrell run approximately 35% below the national average (PayScale). In contrast, Dallas proper and first-ring suburbs like Plano or Richardson carry median prices well above $400,000. The math is simple: for the same mortgage payment, a buyer can get significantly more square footage, a larger yard, and often a newer build in Terrell than in virtually any comparably priced pocket closer to the DFW core.

3. Location and Proximity to Dallas

Where Is Terrell, TX Located?

Terrell is a city in Kaufman County, Texas, located approximately 32 miles east of downtown Dallas along Interstate 20. The city sits at zip codes 75160 and 75161, and is easily accessible via I-20, US-80, and several state routes. Dallas Love Field is roughly 40 miles away, and Dallas/Fort Worth International Airport is accessible within 60 miles.

The city's population is approximately 20,000–21,000 residents, giving it the infrastructure of a functional small city — with grocery stores, healthcare, restaurants, and retail — while maintaining the open space and slower pace that draws so many buyers from the Metroplex.

Commute Considerations

The typical drive from Terrell to downtown Dallas takes approximately 35–45 minutes under normal traffic conditions via I-20. During peak rush hours, this can extend to 50–60 minutes. For remote or hybrid workers — which make up an increasingly large share of today's workforce — this trade-off is very manageable. Many Terrell buyers work in Mesquite, Forney, or other eastern Metroplex employment centers, making the commute even more favorable.

Location Tip: Terrell's position along I-20 means access to Mesquite, Balch Springs, and Forney job centers often takes under 20 minutes — ideal for buyers working outside of downtown Dallas.

4. School Districts and Education

Terrell ISD Overview

Terrell Independent School District serves approximately 5,249 students across 9 campuses, including Terrell High School, which offers Advanced Placement courses and a Gifted & Talented program. The district employs teachers with an average of 10 years of experience and maintains a graduation rate above 89%. On the Texas Education Agency's A–F accountability system, Terrell ISD has received a "B" rating for Terrell High School.

It's worth noting that district-wide test scores currently rank below the Texas state average — a factor some families weigh carefully. Math proficiency sits at 26% district-wide versus the state average of 37%. Buyers with school-age children are encouraged to review campus-specific ratings on GreatSchools.org and the Texas Tribune's school accountability tool.

Private and Alternative School Options

For families seeking alternatives, Terrell is home to Poetry Community Christian School, which receives strong community reviews. Trinity Valley Community College is also located in Kaufman County, providing dual credit and continuing education opportunities that benefit high school students and adult learners alike. Buyers with a strong focus on school quality may also want to explore neighboring Forney ISD or Rockwall ISD, both of which fall within commutable distance of Terrell.

5. Neighborhood Types and Communities

Types of Neighborhoods in Terrell, TX

Terrell offers a diverse mix of housing styles and community settings. In the established core of the city, buyers will find brick ranch-style homes, bungalows, and Craftsman-style properties — many featuring original architecture and mature trees. These neighborhoods typically offer larger lots and lower price points, making them attractive for value buyers.

On the growth edges of the city, new construction subdivisions are active. Recent projects include Phase 1A of the Northspur development (adding 236 single-family lots), Chisholm Trace (91 homes), and Kingsman Estates (36 single-family homes). For those who prefer acreage and rural privacy, Terrell's surrounding unincorporated areas offer large-lot properties that are rare at this price point in North Texas.

What to Expect in Each Area

• Historic Core/Downtown Adjacent: Established character, walkable to downtown shops and restaurants, larger lots, resale inventory
• New Subdivisions (Northspur, Chisholm Trace): Modern floor plans, builder warranties, HOA amenities, higher price points
• Rural/Acreage Properties: 1–10+ acre lots, privacy, lower density, ideal for buyers who want land
• Mid-City Established Neighborhoods: Mix of resale and some new construction, school proximity, family-friendly

6. Property Taxes in Kaufman County

How Property Taxes Work in Terrell, TX

Property taxes in Terrell are administered through the Kaufman County Appraisal District and collected through Kaufman County's tax office. The median effective property tax rate in Terrell is approximately 1.42%, which is higher than the national median of 1.02% but notably lower than the broader Texas state median of 1.67% (Ownwell). On a $280,000 home, you can estimate a property tax bill of roughly $3,000–$3,500 annually, depending on school district and city levies.

Tax bills in Terrell vary by zip code — the 75160 zip code carries a higher median bill (~$3,343) compared to the 75161 area (~$1,743). This is an important consideration when comparing specific properties.

Homestead Exemption and Tax Savings

Texas law allows homeowners to apply for a General Residential Homestead Exemption, which reduces the taxable assessed value of your primary residence and caps annual appraisal increases at 10% per year once granted. Buyers should file their homestead exemption application with the Kaufman County Appraisal District promptly after closing. Additional exemptions are available for homeowners over age 65 and those with qualifying disabilities, including a school tax ceiling that prevents school taxes from ever rising above the year the exemption was first applied.

Tax Tip: Filing your homestead exemption the January 1st following your closing date locks in your rate cap and immediately reduces your taxable value — potentially saving hundreds per year.

7. New Construction vs. Resale Homes

New Build Options in Terrell, TX

New construction activity in Terrell has accelerated significantly. Active subdivisions include the Northspur development (236 lots in Phase 1A), Chisholm Trace (91 homes), and Kingsman Estates (36 homes). Builder incentives such as rate buy-downs and closing cost contributions are common in today's environment and can meaningfully lower your effective monthly payment.

The biggest headline in Terrell new development: in November 2025, the Terrell City Council approved Terra Nova, a $3 billion master-planned community backed by Plano-based Main Square Development. Designed to unfold over 15 phases spanning roughly 20 years, Terra Nova is projected to bring thousands of new homes, jobs, and amenities to Terrell — a signal of significant long-term investment in the area.

Pros and Cons: New Construction vs. Resale

8. Cost of Living in Terrell, TX

Everyday Costs Beyond the Mortgage

Terrell's overall cost of living index comes in at approximately 93 (HomesSnacks), meaning it is about 7% less expensive than the national average. Housing expenses alone run approximately 35% below the national average. Groceries are roughly comparable to national averages, while transportation costs run about 9% below the national average. Utilities trend slightly higher — about 15% above the national average — largely driven by Texas's summer cooling demands.

The median household income in Terrell is approximately $63,583, and experts suggest buyers need an income of around $63,000–$72,000 to comfortably afford a median-priced home at current mortgage rates with a standard 20% down payment.

Is Terrell, TX Cheaper Than Dallas?

Yes — by a significant margin. Housing in Terrell is 35% below the national average, while Dallas proper sits well above it. Transportation and grocery costs in Terrell also undercut Dallas. The tradeoff is slightly higher utilities and a longer commute. For most buyers making the move from Dallas, the monthly savings on housing easily offsets these differences, resulting in meaningfully higher purchasing power and a better quality of life per dollar spent.

9. Local Amenities, Infrastructure & Growth

What Terrell, TX Has to Offer

Terrell is more than a bedroom community — it is a functioning small city with a growing amenity base. Healthcare is anchored by Terrell State Hospital and multiple local clinics, with Baylor Scott & White facilities accessible in surrounding communities. Residents enjoy Lake Tawakoni State Park just a short drive away, offering fishing, boating, hiking, and weekend recreation. Ben Gill Park — a 100-acre green space — serves as the city's crown jewel, featuring a lake, public sports fields, playgrounds, and an Olympic-size swimming pool.

The city's dining and retail scene has expanded along US-80 and I-20 corridors, and the revitalized Historic Downtown Terrell offers local shops, restaurants, and community events including the annual Terrell Jubilee — a four-day outdoor festival drawing over 17,000 attendees. 

The city also takes pride in the British Flying Training School Museum, a unique piece of World War II history located at the municipal airport.

Growth and Development Outlook

Kaufman County recorded the second-highest population growth rate in the entire United States between 2023 and 2024 (U.S. Census Bureau), and Terrell is positioned at the center of that surge. The $3 billion Terra Nova master-planned community — approved by Terrell City Council in November 2025 — represents the most significant private investment in the city's history. Industrial parks near capacity with Fortune 500 tenants, along with active commercial and retail expansion along major corridors, reinforce Terrell's trajectory as one of North Texas's most promising long-term growth markets.

Growth Fact: Kaufman County was the 2nd fastest-growing county in the U.S. in 2023–2024 according to the U.S. Census Bureau — making Terrell one of the most strategically located buys in Texas right now.

10. Working With a Local Real Estate Agent in Terrell, TX

Why a Local Agent Makes a Difference

Buying in Terrell TX is fundamentally different from buying in a well-documented, data-rich Metroplex city. Hyper-local knowledge matters here — knowledge about which streets are being affected by new development, which subdivisions carry HOA restrictions that could limit your plans, which areas may be in flood zones, and which listings haven't hit Zillow yet because the agent network moves faster than the public portals. A locally-embedded agent has relationships with builders, knows the true days-on-market dynamics for specific neighborhoods, and can help you negotiate from a position of real intelligence.

Questions to Ask Your Terrell, TX Agent

• What has actually sold in this neighborhood in the last 90 days, and at what price per square foot?
• Are there any upcoming development or zoning changes near this property I should know about?
• Is this property in a flood zone, and has it ever had water intrusion?
• What builder incentives are currently available in active Terrell subdivisions?
•  What is your experience specifically with buyers in Kaufman County?

Terrell, TX vs. Nearby Cities: At-a-Glance Comparison

Sources: Redfin, Zillow, Ownwell, U.S. Census Bureau. Data as of 2025–2026.

Real Buyer Scenario: What Buying in Terrell, TX Actually Looks Like

Case Study: The Rodriguez Family

Miguel and Sara Rodriguez were renting a 2-bedroom apartment in Mesquite for $2,050 per month. With a combined income of $82,000 and $35,000 saved for a down payment, they began searching for homes in 2025. In Forney, their budget of $290,000 left them limited to older resale properties with small yards. In Rockwall, they couldn't find anything below $380,000.

After consulting with a local Terrell buyer's agent, they discovered that $285,000 in Terrell put them squarely in new construction territory — a 1,850 sq ft, 3-bedroom, 2-bathroom home with a two-car garage and a covered patio in the Chisholm Trace subdivision. With a builder rate buy-down incentive, their effective 30-year mortgage rate came in at 5.875%, putting their principal and interest payment at $1,687/month.

After filing their homestead exemption and accounting for property taxes and insurance, their all-in housing payment came to approximately $2,200/month — only $150 more than their Mesquite rent, for a home nearly twice the size. Within 12 months, the Northspur development broke ground nearby, and comparable homes in Chisholm Trace began listing at $305,000.

Before: $2,050/month rent | 950 sq ft apartment | 0% equity | Mesquite, TX After: $2,200/month all-in | 1,850 sq ft new construction home | Growing equity | Terrell, TX

Expert Tips for Buying in Terrell, TX

Common Mistakes to Avoid

• Skipping mortgage pre-approval before touring homes — sellers in Terrell take pre-approved buyers more seriously, and builders often require it before locking a price
• Overlooking property tax zip code differences — the 75160 zip carries a materially higher tax burden than 75161, which matters for your monthly payment calculation
• Not verifying school district boundaries before signing a contract — a street address in Terrell can fall in Terrell ISD or a neighboring district
• Underestimating HOA costs in new subdivisions — some active communities carry monthly HOA fees of $75–$150 that affect your debt-to-income ratio
• Skipping the home inspection on new construction — builder warranties do not replace a thorough independent inspection before final walkthrough

Best Practices and Insider Advice

• Shop October through January — less buyer competition, more motivated sellers, and builders are more likely to offer generous incentives to close out their fiscal year
• Request seller concessions toward closing costs — in Terrell's current market, sellers often contribute 2–3% of purchase price toward buyer closing costs
• File your homestead exemption the first week of January after closing — don't wait until tax season to realize you missed the deadline
• Check FEMA flood zone maps for any Kaufman County property — some areas near creeks and low-lying terrain are in designated flood zones, requiring additional insurance
• Get a full property boundary survey if buying acreage or rural land — fencing lines and recorded property lines often differ

Is Buying in Terrell, TX Right for You?

Terrell, Texas is no longer just a well-kept secret — it's one of the most compelling home buying opportunities in the entire DFW Metroplex. With median home prices significantly below neighboring suburbs, a buyer-friendly market with negotiating room, direct I-20 access to Dallas, and Kaufman County ranked as the second fastest-growing county in the United States, the fundamentals for buying here are strong and getting stronger.

The $3 billion Terra Nova development, accelerating new construction, and the revitalization of Historic Downtown Terrell are all indicators that the people who buy now are positioning themselves ahead of a growth curve that shows no signs of slowing. Whether you're a first-time buyer stretching your dollar or a seasoned homeowner looking for more land and a better lifestyle, Terrell rewards buyers who do their homework.

If you’re serious about buying in Terrell, TX, working with a knowledgeable local team can make a significant difference. The Cole Home Team brings deep market insight, strong relationships with local builders, and firsthand knowledge of neighborhoods and off-market opportunities — helping buyers make confident decisions in a fast-evolving market.

References

• Redfin — Terrell TX Housing Market Data (redfin.com)
• Zillow — Terrell TX Home Values & ZHVI (zillow.com)
• Ownwell — Terrell TX Effective Property Tax Rate (ownwell.com)
• U.S. Census Bureau — Kaufman County Population Growth 2023–2024 (census.gov)
• Texas Education Agency — Terrell ISD School Accountability Ratings (tea.texas.gov)
• Texas Tribune — Terrell ISD District Overview (schools.texastribune.org)
• Kaufman County Appraisal District — Homestead Exemption Information (kaufman-cad.org)
• PayScale — Terrell TX Cost of Living (payscale.com)
• Business View Magazine — Terrell TX Growth & Development (businessviewmagazine.com)
• Home With Hampson — Terra Nova $3B Development Overview (hampsonproperties.com)

Frequently Asked Questions About Buying in Terrell, TX

Is Terrell, TX a good place to buy a home?

Yes — Terrell is one of the best value-driven home buying opportunities in the DFW Metroplex right now. It offers median home prices well below comparable suburbs, a less competitive market with negotiating room for buyers, direct I-20 access to Dallas, and some of the strongest population growth in the country. Buyers willing to commute 35–45 minutes to Dallas are rewarded with significantly more purchasing power.

What is the average home price in Terrell, TX?

Median home values in Terrell TX currently range from approximately $190,000 (Redfin sale data) to $285,000 depending on the time period and source. The Zillow Home Value Index places the typical value at around $274,365. Most move-in-ready 3-bedroom homes in the city can be found in the $200,000–$320,000 range, while new construction starts near $280,000.

How far is Terrell, TX from Dallas?

Terrell is approximately 32 miles east of downtown Dallas, with direct access via Interstate 20. Under normal conditions, the drive takes 35–45 minutes. During peak rush hour, commute times can extend to 50–60 minutes. Many Terrell buyers work in eastern Metroplex cities like Mesquite or Forney, significantly reducing commute times.

What are property taxes like in Terrell, TX?

The median effective property tax rate in Terrell TX is approximately 1.42% — higher than the 1.02% national median but lower than the Texas state median of 1.67%. On a $280,000 home, expect an annual tax bill in the range of $3,000–$3,500. Filing the Texas Homestead Exemption immediately after closing caps annual appraisal increases at 10% per year and reduces your taxable value, providing ongoing savings.

Are there new construction homes available in Terrell, TX?

Yes — new construction is very active in Terrell. Current projects include Phase 1A of the Northspur development (236 lots), Chisholm Trace (91 homes), and Kingsman Estates (36 homes). The city also approved the $3 billion Terra Nova master-planned community in November 2025, which will add thousands of new homes over the next 20 years. Builder incentives including rate buy-downs and closing cost credits are currently common. 

What should I know before buying a home in Terrell, TX?

The three most important things to know before buying in Terrell TX: first, property tax rates vary significantly between zip codes — verify the specific rate for any property you're considering. Second, Terrell ISD school ratings are below the Texas state average, so families focused on school quality should research campus-specific ratings or explore neighboring districts. Third, partner with a local buyer's agent who knows the Terrell market specifically — hyper-local knowledge about flood zones, development plans, and builder relationships makes a measurable difference in the outcome of your purchase.

Header Photo by todd kent on Unsplash