How to Sell a House As-Is in Texas: A Complete Guide

The Texas Homebuying Timeline: What to Expect Start to Finish

Most Texas home purchases take 45–75 days from accepted offer to closing. The timeline has three phases — pre-approval and search, contract to inspection/appraisal, and final underwriting to close — each with its own dependencies and decision points. Understanding the full sequence before you start prevents the most common buyer mistakes: falling in love with a home before knowing what you can afford, waiving inspections under competitive pressure without understanding the risks, and discovering financing problems a week before closing.

Step 1: Pre-Approval Before You Search

Pre-approval is not optional in the Texas market — it’s a prerequisite for competitive offers. Most Texas listing agents won’t present an offer to their seller without a lender’s pre-approval letter, and in multiple-offer situations, a strong pre-approval letter can differentiate you from otherwise equal offers. Pre-qualification (a lender’s unverified estimate based on self-reported information) is not the same as pre-approval and is treated accordingly by sellers.

For a genuine pre-approval: the lender verifies your identity, pulls a hard credit inquiry, reviews your W-2s and tax returns, documents your assets, and runs your application through automated underwriting. The resulting pre-approval letter specifies the maximum loan amount you’re approved for, the loan program, and any conditions that must be met before final approval. An underwritten pre-approval — where a lender’s underwriter has reviewed the complete file — is even stronger and reduces the risk of surprise conditions when the actual purchase application is submitted.

Documents to gather before meeting with a lender: two years of W-2s and federal tax returns, one month of current pay stubs, two months of bank statements on all accounts being used for down payment and reserves, photo ID, and documentation of any other income sources. Self-employed borrowers add two years of business returns.

Apply to two lenders rather than one. The pre-approval process doesn’t obligate you to use that lender, and having a second opinion gives you rate comparison leverage when you eventually lock. A 0.25% rate difference on a $350,000 loan saves $48/month and approximately $17,280 over 30 years.

Step 2: Understanding Texas-Specific Costs Before You Budget

Texas’s property tax environment is the most important financial variable that buyers from other states frequently underestimate. Texas’s average effective property tax rate is approximately 1.74% (Tax Foundation) — versus the 1.10% national average. On a $350,000 home, that’s $6,090/year = $508/month in property taxes, compared to $3,850/year = $321/month at the national average. The $187/month gap means a Texas buyer earning $80,000/year has meaningfully less purchasing power than a buyer with the same income in a lower-tax state.

Texas homestead exemption ($100,000 off school district taxable value, filing Form 50-114 with your county appraisal district by April 30 of the year after purchase) saves $800–$1,200/year in property taxes starting in year two. It doesn’t reduce your year-one escrow payment — lenders base escrow on the pre-exemption tax bill — but produces a predictable savings that accumulates over your ownership period.

Texas homeowners insurance averages $2,200–$4,500/year — significantly above the national average — due to hail, wind, hurricane exposure on the coast, and Texas’s claims history. For a $350,000 home, budget $2,800–$3,500/year for insurance. Shop multiple carriers and specifically look for carriers with strong Texas claim-paying track records. The Texas Department of Insurance’s rate comparison tool at tdi.texas.gov publishes complaint ratios and financial stability ratings for Texas insurers.

Step 3: Making Competitive Offers in Texas Markets

Texas is a “non-disclosure” state — sale prices are not publicly recorded in the MLS or required to be disclosed. Comparable sales data comes from MLS transaction records that agents access through their board memberships. As a buyer working with an agent, ask to see the actual closed comparable sales data for properties similar to your target in size, condition, and location sold within the past 90 days.

Texas uses the Texas Real Estate Commission’s (TREC) One to Four Family Residential Contract as the standard purchase contract. Key provisions:

Option period: Texas buyers typically negotiate a 7–10 day unrestricted option period, funded by a non-refundable option fee of $100–$500. During this period, you can terminate the contract for any reason and receive your earnest money back. The option period is when your inspection, survey review, and initial appraisal assessment occur. Never waive the option period on a Texas resale home — it’s your primary risk management tool.

Earnest money: Typically 1–3% of purchase price held by the title company. In Texas, earnest money is refundable during the option period and may be refundable after option period expiration if a specific contract condition fails. After the option period expires and conditions clear, the earnest money is at risk if you default without contractual basis.

Title company selection: Texas buyers have the right to choose their own title company. In Texas, the buyer typically negotiates for the seller to pay the owner’s title insurance premium (customary in Texas; approximately $1,935 on a $350,000 purchase at promulgated rates).

Step 4: Home Inspection — Texas Priorities

Texas’s climate, soil conditions, and housing stock create specific inspection priorities:

Foundation inspection by a licensed structural engineer: Expansive clay soils are endemic throughout North Texas, Central Texas, and the Gulf Coast corridor. Foundation repair ranges from $3,000 for minor pier work to $60,000+ for severe differential movement. A structural engineer’s assessment costs $300–$500 and is worth every dollar on any DFW, Austin, or Houston home over 15 years old.

HVAC inspection by a licensed HVAC contractor: In Texas, where air conditioning runs 6–8 months annually, knowing whether the system has 2 years or 12 years of remaining life is material to your offer terms. An HVAC contractor measures refrigerant pressure, inspects coil condition, and provides a remaining-life estimate beyond what a general inspector covers.

Roof inspection: Hail damage is endemic in Texas, particularly in DFW and Austin. A licensed roofing contractor should evaluate hail damage evidence, remaining shingle life, and flashing condition. Sellers may have delayed insurance claims — visible granule loss, soft spots, and impact marks should be documented.

Wood-destroying insects: Required for VA loans; strongly recommended for all buyers in central and eastern Texas where termite activity is common.

Step 5: Appraisal, Underwriting, and Closing

After the option period, your lender orders the appraisal through an Appraisal Management Company. If it comes in below contract price: negotiate a price reduction, pay the gap in cash, challenge the appraisal with better comps, or terminate using your financing contingency. Underwriting follows — respond to any conditions requests within 24–48 hours to avoid delays.

Texas closings occur at title companies, not attorney offices. Bring government-issued photo ID and a wire transfer for your cash to close. Review your Closing Disclosure carefully against your Loan Estimate. Close near the end of the month to minimize prepaid interest at closing.

Step 6: After Closing — File Your Homestead Exemption

File Form 50-114 with your county appraisal district by April 30 of the following year. The $100,000 school district value reduction saves $800–$1,200/year beginning in year two and activates the 10% annual assessment cap that protects you from rapid tax escalation in appreciating markets. This is the highest-return 20-minute task a Texas homeowner can complete — don’t delay it.