Must-Know Tips for Selling a House by Owner! Avoid These Mistakes!

Rick, a homeowner in San Antonio, Texas, decided on selling his house without an agent. He thought it would be easy, but soon faced paperwork, pricing issues, and surprises. His experience shows the challenges of selling a house by owner in Texas.

You might be thinking, "Oh here we go. They are going to tell us we should just sell with a real estate agent."

Nope!

We are going to share with you pitfalls to watch out for and tips to help you sell quickly and for more. These lessons we learned the hard way in our 20 years of buying and selling houses. We still think for sale by owner is the a good choice depending on certain situations we will go over.

In Texas, with high home prices and mortgage rates around 7%, selling by owner can save money. It could save you up to 6% of the sale price in agent fees. But, it comes with its own set of challenges.

The Texas real estate market varies greatly from city to city. From busy Houston to peaceful San Antonio, each area has its own market. 7% of home sales in 2023 were by owner, showing it's a viable choice for smart sellers.

The easiest way to avoid the pitfalls people make when selling their house themselves, you should consider a cash home buyer. This is especially true if you are thinking, "I wish someone would just buy my house cash!" We will talk more on this later in the article. Don't worry!

As we explore tips for selling your Texas house without a Realtor, remember Rick's story. With the right knowledge and planning, you can sell successfully and save thousands in commissions.

Key Takeaways

• FSBO sales can save Texans thousands in agent commissions
• Only 7% of Texas home sales in 2023 were FSBO transactions
• FSBO homes in Texas sold for a median price of $310,000 in 2023
• Strategic pricing and effective marketing are crucial for successful FSBO sales
• Selling to a cash home buyer is becoming a popular alternative when selling without a Realtor in Texas

Mistake #1: Not Pricing Your Home Competitively

Setting the right price for your property is hugely important when selling your house yourself in Texas. A competitive price draws in buyers and helps you sell faster.

If you do not set a good price, you won't find a buyer quickly or if at all.

Start with a free online estimator to get a rough idea of your home's value. These tools use public data to estimate a price. You can find this type of data on Zillow.com.

For a more precise evaluation, consider a comparative market analysis (CMA) from a local real estate agent. You will need to find one willing to do this without signing a listing agreement as you want to sell the house for sale by owner. They'll examine recent sales of similar homes in your area. This info helps you set a price that matches current market trends.

• In a seller's market, you might price up to 10% above market value
• In a buyer's market, pricing slightly below market value can attract more interest
• Homes priced right often sell for 100% of asking price, with 25% selling above asking

"I would say now's the time to buy. It's more balanced. It's not a seller's market anymore," says realtor Debbie Petty, in an article on CBSNews.

Maybe that's awesome news for home sellers, but at least we are not in a situation like in 2008 when values dropped dramatically.

Remember, pricing isn't set in stone. Be ready to adjust based on buyer feedback and market shifts. A well-priced property usually sells quicker, cutting the risk of later price cuts. By setting the right price from the start, you boost your chances of a successful sale.

Mistake #2: Not Attracting the Right Buyers

If your house is in great shape and you are not in a hurry to sell, you don't want to be attracting real estate investors that are looking for a good deal at discount. You want to find someone looking to move into the house.

If, on the other hand, your house needs repairs and you need to sell fast, you will want to attract cash home buyers that can buy the house without repairs needing to be made and close quickly. More on this later in this article.

Tips for Selling a House by Owner

Selling your house by owner in Texas can be make you more money if done property. Only 7% of sellers take this path, saving money and controlling the sale.

Be careful though. You could end up selling your house for less than if you had used a real estate agent. If you have compared selling your house yourself versus selling with an agent and have decided to sell yourself, you will want to follow some proven guidelines. Here are some tips to help you succeed selling your house yourself.

Tip #1: Prepare Your Home for Sale

First, declutter and depersonalize your space. Improve your home's curb appeal for a strong first impression. Think about hiring a professional home stager to highlight your property's best features.

Your goal here is to make your house as appealing as possible when people see your listings online. When selling a house without a realtor, you have to do this yourself. When homeowners skip this step or rush through it, they end up with fewer calls and showings.

Tip #2: Create Effective Marketing Materials

Your goal with effective marketing materials when you sell your house without an agent is to create interest from potential buyers. They must see what your house looks like and like it enough to contact you to see it.

Here are some ways to create effective marketing materials:

• Invest in professional photography to show your home's beauty.
• Write a compelling description that points out what makes your home special.
• List your home on sites like Zillow and Trulia.
• Use social media to spread the word too.

Tip #3: Hold Open Houses

Plan open houses to draw in potential buyers. You will want to put out yard sides to direct traffic to your house. You can also post an event on Facebook to help draw interest and potential buyers. Be ready to answer questions and show off your home's best parts during visits.

Pro tip: Bake chocolate chip cookies right before the open house. Nothing creates emotional connect to 'Home' than smelling fresh baked cookies.

Tip #4: Organize Your Showings with Online Tools

Use online tools to manage showings well. We prefer to use Calendly. They allow connecting to your existing calendar, whether that be Google Calendar or Microsoft. This way you won't make the mistake of double booking.

Tip #5: Negotiate Offers

When offers come in, review them closely. Check for contingencies and buyer pre-approval. Don't hesitate to negotiate terms.

Be sure to compare apples to apples. Someone might offer less but then request less in closing cost assistance. It's best to calculate what you will net from the sale. Any local title company should be willing to help you determine this. Do not feel like you need to hire an agent to figure these types of things out.

Some of the costs you need to determine who is paying are in the real estate transaction:

• Title policy
• Escrow fees
• Buyer closing cost assistance
• Survey (if you do not already have one)
• Any commissions for buyer agent (if they have one)
• Home inspection
• Home warranty

Remember, selling by owner can save you money but you will have to negotiate for yourself. You might need to talk to a lawyer about contracts and rules. With the right approach and info, you can successfully sell your home for sale by owner in Texas.

Steps to Sell a House By Owner

There are many steps to successfully selling a house without an agent. It's important to be prepared before starting the sale process. We decided to help Texas homeowners by putting together a checklist when selling a house for sale by owner.

Legal Considerations and Paperwork

Selling a house by owner in Texas can be scary if you do not know the legal requirements. It's important to know these rules to avoid problems and make the sale smooth. Let's look at the main legal things you should know in the state of Texas.

Required Disclosures in Texas

Texas requires sellers to share what they know about their property. This includes details about any previous or current deficiencies, and flood risks. The Texas Real Estate Commission has a form for this, called the Seller's Disclosure Notice. Fill it out carefully to protect yourself from legal issues later.

Contracts and Agreements

A big part of why people hire an agent, and are willing to pay the real estate agent commission, is because they help with all of the proper contracts. You could also hire a real estate attorney. If you feel comfortable with it, you could learn the ins and outs yourself.

The offer and acceptance process is very important. You'll need to make a sales contract that covers everything about the sale. This includes escrow, taxes, and if the buyer plans to live there. Again, the title company you are considering using can help you with what contract to use when selling your house by owner in Texas.

Working with a Real Estate Attorney

Getting a real estate attorney is not a must, but it can be helpful. They can guide you through complex paperwork and make sure you follow Texas laws. Lawyers charge between $100 to $400 an hour, which is often cheaper than real estate agent fees. They can also help with taxes when you sell your house.

What needs to be disclosed when selling a house in Texas?

Selling a home without full disclosure can cause big problems. In Texas, you must be open about the property's condition. The Texas Real Estate Commission requires a Seller's Disclosure Notice for most sales.

This notice talks about different parts of the home, such as:

• Structural elements like roof, walls, and foundation
• Electrical systems and appliances
• Environmental factors such as flooding history
• Presence of smoke detectors

If the house was built before 1978, it'd be best to provide a lead based paint addendum.

You must tell buyers about any known issues that could lower the property's value or appeal. This includes water damage, past fires, or problems with the A/C. Being honest about the home's state helps avoid scams or legal issues.

Interestingly, 60% of sellers don't reveal all defects in their homes. This can lead to problems after the sale, as 95% of buyers find issues later. To protect yourself, consider these steps:

• Complete a pre-sale inspection
• Document all repairs and maintenance
• Consult with a real estate attorney if unsure about disclosure requirements

Not disclosing known issues can lead to fines and penalties. It's best to be open during the selling process. This ensures a smooth sale and avoids legal problems later.

Who pays property taxes when you sell a house in Texas?

When you sell a house fast in Texas, property taxes are important. Both buyers and sellers must pay their share of taxes. This is called proration and splits the tax based on how long each owns the house in the tax year.

In a fsbo sale or a cash sale, here's what happens:

• Sellers pay taxes up to the closing date
• Buyers pay taxes from the closing date to December 31
• Tax amounts are estimated at closing, as exact bills may not be available

The home sale price doesn't change this split. Whether you sell your home the traditional way or for cash, you'll pay taxes the same way. Texas makes sure each party pays their fair share based on how long they owned the house.

Property taxes in Texas pay for local services like schools and law enforcement. You pay for the previous year, so you're paying in arrears. When planning your fsbo sale, remember to include these taxes in your pricing and budget for closing costs.

"Understanding property tax obligations is crucial for a smooth home sale in Texas." - Danny Johnson, Owner at Danny Buys Houses in San Antonio, TX

For help with property taxes in your home sale, talk to a real estate expert familiar with the Texas market. They can figure out the exact tax you'll owe at closing. This ensures a fair and legal sale.

How to avoid capital gains tax when selling a house in Texas?

Selling your home in Texas can be a great way to make more money, but you need to know how to keep it. Texas doesn't have state income or state capital gains taxes, but you still have to pay federal taxes. Here are some ways to lower or avoid capital gains tax when you sell your house.

The primary residence exemption is a big help for homeowners. If you've lived in your house for at least two of the last five years, you can exclude up to $250,000 of profit from capital gains tax. Married couples filing together can exclude up to $500,000. This rule makes selling your home in Texas more appealing. In this case, it's important to have a Homestead Exemption on your property.

For investment properties, think about a 1031 exchange. This lets you defer capital gains taxes by putting the profits into another similar property. It's a good choice for those wanting to expand their real estate without a big tax hit.

• Keep receipts for home improvements to increase your cost basis
• Time your sale to offset gains with losses from other investments
• Consider selling in a year when your income is lower

When selling your house by owner in Texas, getting a real estate attorney is smart. They can help you with the selling paperwork and make sure you use all tax-saving options. Even though you might save on agent fees, legal advice is worth a lot.

How does it work to sell to a cash home buyer?

Selling a house in Texas without a realtor to a cash home buyer is quick and simple. For those selling on their own in Texas, this method is a great choice. Cash buyers buy homes as-is, skipping the need for repairs or staging.

There are some pros and cons to selling your house to a cash buyer that you should be aware of.

Selling a house for cash usually doesn't require you to set a price for your home. This is because cash home buyers buy for investment purposes. They do not go off of your price, instead they go off of their formula for investment.

You won't have to worry as much about the paperwork for selling either. They usually have a one or two page contract that is easy to understand. We use a single page contract with simple language at Danny Buys Houses.

Many sellers like this option because you can even skip having to market your home. This saves a lot of time and cost.

The process begins with contacting the buyer, who offers a first price based on the home's location and state and their investment criteria. The buyer inspects the property, and a final offer is made. Selling to cash buyers is fast, often closing in just 10 days, much quicker than the usual 49 days for traditional sales.

Home selling to a cash buyer is quicker and easier, but there are downsides. Research shows cash buyers pay about 11 percent less than those with traditional mortgages. This is if they are going to live in the property.

Cash home buyers that are buying for investment can offer between 50-80% of market value. So, you might get a lower offer than you could on the open market. Yet, many homeowners in Texas prefer the ease and speed of a cash sale over possibly getting a higher price.

In January 2023, around 29 percent of home sales were all-cash deals, according to the National Association of Realtors. This trend shows cash sales are becoming more popular, especially for those selling without an agent. When deciding how to sell your Texas home, consider the pros and cons of selling to a cash buyer to make the best choice for you.

If you want to sell for cash without having to list your Texas home or determine a sale price, give us a call. We will make you a fair cash offer. Selling by owner in Texas has never been easier. The best is our offers are no-obligation and no cost. You have nothing to lose to see what we can pay for your house.