Selling a Home in Texas

Quick Summary: Selling a Home in Texas

Texas is one of the most seller-friendly states in the country thanks to no transfer tax and no state income tax. The median home price sits around $340,000, and total selling costs average roughly 8.4% of the sale price. An attorney is not required — title companies handle closings. Sellers must complete the Seller's Disclosure Notice (a standardized TREC form), and buyers receive a unique option period of 5–10 days after going under contract. Property taxes are higher than the national average (1.6–2.2%), which can affect buyer affordability and your pricing strategy.

Cost Breakdown: What You'll Pay to Sell in Texas

On a $340,000 Texas home, here is how the costs break down. The single biggest advantage for Texas sellers is the absence of a transfer tax — a line item that costs sellers thousands in most other states.

The listing commission is the single largest cost. It is also the most negotiable — and the one where flat fee alternatives create the biggest savings.

Flat Fee Listing Options in Texas

Texas has a competitive flat fee market. Here is how the major options compare for a seller with a $340,000 home. All of these services get your property onto the MLS and syndicated to Zillow, Realtor.com, and Redfin.

The difference between a $999 flat fee and a 2.75% commission on a $340,000 home is over $8,000. Even at $500,000, the savings climb to $12,750. For context, that is more than most Texas homeowners pay in annual property taxes.

Ridley Essentials includes MLS listing, professional listing tools, and AI-powered support for pricing and negotiations. Learn more about flat fee real estate to compare models in depth.

Texas Seller's Disclosure Notice

Texas requires sellers to complete the Seller's Disclosure Notice, a standardized form created by the Texas Real Estate Commission (TREC). This is one of the most comprehensive disclosure forms in the country.

What the TREC Disclosure Covers

• Structural conditions — foundation, walls, ceilings, floors, roof age and condition
• Systems — plumbing, electrical, HVAC, water heater, appliances included in the sale
• Environmental hazards — lead-based paint (pre-1978 homes), asbestos, radon, mold, previous termite damage or treatment
• Water and flooding — whether the property is in a flood zone, history of flooding, water penetration, or drainage issues
• HOA details — membership, dues, restrictions, pending assessments
• Previous repairs and modifications — any work done with or without permits, insurance claims filed
• Property boundaries and easements — known encroachments, shared driveways, utility easements
• Other conditions — proximity to a landfill, military base, or industrial site; noise issues; soil conditions

Penalties for Non-Disclosure

Texas takes disclosure seriously. If a seller knowingly fails to disclose a material defect, the buyer can pursue legal action after closing. Courts have awarded damages covering repair costs, diminished property value, and in some cases attorney's fees. The safest approach is to disclose everything you know — even items you consider minor.

Exemptions from Disclosure

A few categories of sales are exempt from the TREC disclosure requirement: foreclosures, court-ordered sales, transfers between family members, and new construction (where the builder provides warranties instead). Estate sales where the executor never occupied the property are also exempt, though many estate representatives choose to disclose what they know voluntarily.

The No Transfer Tax Advantage

Texas is one of approximately 13 states that does not charge a real estate transfer tax. This is a significant financial advantage that sellers in other states do not enjoy.

To put this in perspective, here is what sellers in other major states pay in transfer taxes on a $340,000 sale:

Combined with no state income tax, Texas sellers keep significantly more of their proceeds than sellers in high-tax states like New York, California, or Pennsylvania.

Timeline: How Long Does It Take to Sell in Texas?

The timeline varies significantly depending on your market. Texas is a big state, and the difference between selling in downtown Austin and rural East Texas can be months.

Average Days on Market by Metro

End-to-End Timeline

From deciding to sell to closing day, the typical Texas timeline looks like this:

• Pre-listing prep — 1–3 weeks (repairs, staging, photography, listing setup)
• Active on market — 35–65 days (varies by metro and price point)
• Option period — 5–10 days after contract execution
• Under contract to close — 30–45 days (title search, appraisal, buyer financing)
• Total: roughly 10–18 weeks from listing to closing

Cash offers and investor purchases can close in as few as 10–14 days after contract execution. Conventional mortgage-contingent sales typically take 30–45 days to close.

Texas-Specific Considerations

The Option Period

The option period is unique to Texas. After a buyer and seller execute a contract, the buyer pays a negotiable option fee (typically $100–$500) for the unrestricted right to terminate the contract during a set period, usually 5–10 days.

During this window, the buyer can walk away for any reason — inspection issues, cold feet, a better property. The seller keeps the option fee but must relist. This is different from most states, where the inspection contingency is the primary exit mechanism.

Seller strategy: Negotiate a higher option fee ($300–$500) and a shorter option period (5–7 days) to reduce your risk. The option fee is credited toward the purchase price if the buyer proceeds.

High Property Taxes

Texas has some of the highest property taxes in the country, with effective rates ranging from 1.6% to 2.2% depending on the county. On a $340,000 home, that translates to $5,440–$7,480 per year.

Why this matters for sellers: high property taxes affect buyer affordability. A buyer pre-approved for a certain monthly payment can afford a lower purchase price in Texas than in a low-tax state because more of their payment goes to taxes. Price your home with this in mind — especially if comparing to recent sales in lower-tax areas.

Homestead Exemption

Texas offers a generous homestead exemption of up to $100,000 for school district taxes on a primary residence. Additional exemptions may be available for seniors (65+) and disabled homeowners. This reduces the taxable value significantly.

When selling, make sure buyers understand they can apply for the homestead exemption to lower their annual tax bill. This can be a useful selling point, especially for first-time buyers concerned about Texas's high property tax rates.

HOA Requirements

Texas has one of the highest percentages of HOA-governed properties in the country, particularly in master-planned communities in the suburbs of Houston, Dallas, Austin, and San Antonio. Sellers must:

• Disclose HOA membership on the Seller's Disclosure Notice
• Provide HOA governing documents to the buyer
• Obtain an HOA resale certificate (typically $150–$400), which confirms dues are current, outlines rules, and lists any violations or pending assessments
• Ensure any exterior modifications were approved by the HOA — buyers can discover unapproved changes and demand corrections

Survey Requirements

While not legally required in every transaction, most Texas buyers and title companies request a property survey. The buyer typically pays for a new survey ($400–$700), but sellers can provide an existing survey to save the buyer money and speed up closing. If the existing survey is recent (within 5 years) and no changes have been made to the property, most title companies will accept it.

No State Income Tax and Capital Gains

Texas does not have a state income tax, which means there is no state-level capital gains tax on your home sale. Federal capital gains rules still apply:

• Primary residence exclusion — if you lived in the home for at least 2 of the last 5 years, you can exclude up to $250,000 (single) or $500,000 (married filing jointly) in gains
• Above the exclusion — gains exceeding the exclusion are taxed at federal rates of 0%, 15%, or 20% depending on income
• Investment property — no primary residence exclusion; federal capital gains tax applies to all profit. A 1031 exchange can defer the tax if you reinvest in another property

Step-by-Step: How to Sell a Home in Texas

1. Determine Your Home's Value

Start with a comparative market analysis (CMA). Look at recently sold homes within a half-mile radius with similar square footage, bed/bath count, and condition. Texas appraisal district records are public — you can verify assessed values and recent sale prices through your county appraisal district website.

2. Choose How to Sell

You have three main paths in Texas:

• Traditional agent — full service, typically 2.5–3% listing commission
• Flat fee service — MLS listing for a fixed price ($399–$3,499), with varying levels of support
• FSBO — sell entirely on your own with no MLS exposure unless you use a flat fee MLS service

Read our guide on selling without a realtor if you are considering the FSBO or flat fee route.

3. Prepare the Property

Texas buyers expect well-maintained homes. Focus on:

• Curb appeal — landscaping, front door paint, clean driveway (especially important in HOA communities)
• HVAC maintenance — Texas heat makes a functioning AC system non-negotiable for buyers. Service your system and replace filters before listing.
• Foundation check — Texas clay soil causes foundation issues. If you have visible cracks or door alignment problems, get a foundation inspection before listing to avoid surprises during the option period.
• Professional photography — listings with professional photos sell faster in every Texas market

4. Complete the Seller's Disclosure Notice

Download the current TREC Seller's Disclosure Notice form from the Texas Real Estate Commission website. Fill it out completely and honestly. Err on the side of over-disclosure.

5. List on the MLS

Your listing goes live on the local MLS (Texas has multiple MLS systems by region: Austin Board of Realtors MLS, Houston Association of Realtors MLS, North Texas Real Estate Information Systems for DFW, and San Antonio Board of Realtors MLS). Listings syndicate from the MLS to Zillow, Realtor.com, Redfin, and hundreds of other sites.

6. Manage Showings and Offers

Texas uses standardized TREC contract forms. When offers come in, review the price, financing type, option period length, option fee amount, closing timeline, and any special provisions. You can accept, reject, or counter any offer.

7. Navigate the Option Period

Once you accept an offer and execute the contract, the buyer's option period begins. During this time the buyer will likely schedule a home inspection and possibly a foundation inspection. Be prepared for repair requests or a possible termination.

8. Appraisal and Buyer Financing

If the buyer is using a mortgage, the lender will order an appraisal. If the appraisal comes in below the contract price, you may need to renegotiate. Options include lowering the price, the buyer making up the difference in cash, or meeting in the middle.

9. Title and Closing

The title company conducts a title search, prepares closing documents, manages escrow, and facilitates the closing. In Texas, the seller typically pays for the owner's title insurance policy (this is negotiable but customary). Closing can be done in person or, increasingly, via remote online notarization.

10. Close and Receive Proceeds

At closing, you sign the deed, the buyer signs their mortgage documents, and the title company disburses funds. Sellers typically receive proceeds via wire transfer within 1–2 business days after closing.

Major Market Differences Across Texas

Texas is not a single market — it is four (or more) distinct metros with different dynamics. Here is how the four largest markets compare:

Austin

Austin experienced the steepest price run-up during 2020–2022 and the most significant correction in 2023–2024. Prices are now stabilizing, but inventory remains higher than other Texas metros. Sellers in Austin should expect longer days on market and more competition. Pricing accurately from day one is critical — overpriced Austin homes sit.

Dallas–Fort Worth

DFW is the strongest seller's market among the Big Four. Major corporate relocations (Toyota, Goldman Sachs, Caterpillar, and others) have created sustained demand. Suburban communities in Frisco, McKinney, and Allen are particularly competitive. Homes priced correctly in popular DFW suburbs can still see multiple offers.

Houston

Houston is the most price-sensitive major market in Texas. Flood-zone status matters enormously — homes in areas that flooded during Hurricane Harvey (2017) or subsequent storms face longer DOM and price pressure. Sellers must disclose flood history on the TREC form. Homes in flood-resilient areas and master-planned communities command premiums.

San Antonio

San Antonio offers the lowest median price among the Big Four, making it attractive for relocation buyers and military families (Joint Base San Antonio is a major driver). The market is steady but not as hot as DFW. Sellers benefit from a growing population and relative affordability, but should expect moderate DOM and standard negotiations.

Frequently Asked Questions

How much does it cost to sell a house in Texas?

Total selling costs in Texas average approximately 8.4% of the sale price. On a $340,000 home, that is roughly $28,560 — including ~5.5% in commissions, ~1% in title and closing fees, and ~1.9% in repairs, staging, and concessions. Texas has no transfer tax, which saves sellers compared to most other states.

Do I need a lawyer to sell a house in Texas?

No. Texas does not require an attorney for real estate transactions. Title companies handle closings, escrow, title searches, and document preparation. However, you may want to consult an attorney if you are facing a complex situation — divorce, estate sale, boundary disputes, or selling a property with liens.

Does Texas have a transfer tax?

No. Texas does not charge a transfer tax on real estate sales. This is one of the biggest financial advantages of selling in Texas. In states with transfer taxes, sellers can owe anywhere from 0.1% to over 2% of the sale price.

What is the option period and how does it affect my sale?

The option period is a Texas-specific provision that gives the buyer an unrestricted right to terminate the contract during a negotiated window (usually 5–10 days) in exchange for a non-refundable option fee ($100–$500). During this time, the buyer conducts inspections and can back out for any reason. As a seller, negotiate a higher option fee and shorter period to minimize risk.

When is the best time to sell a house in Texas?

Spring (April–June) is generally the best time to sell in Texas. Buyer activity peaks as families look to move before the school year. However, Texas's warm climate extends the selling season compared to northern states. DFW and Austin tend to heat up earlier (March), while Houston maintains relatively consistent activity year-round.

Do I owe capital gains tax when selling in Texas?

Texas has no state income tax, so there is no state capital gains tax. Federal capital gains tax still applies. If the home was your primary residence for at least 2 of the last 5 years, you can exclude up to $250,000 (single) or $500,000 (married filing jointly) in gains. Gains above the exclusion are taxed at federal rates of 0%, 15%, or 20%.

Is FSBO legal in Texas?

Yes. There is no legal requirement to use a real estate agent in Texas. You must still comply with all disclosure requirements, including the TREC Seller's Disclosure Notice. Many Texas FSBO sellers use flat fee MLS services to get MLS exposure without paying a full listing commission.

What HOA disclosures are required in Texas?

Sellers must disclose HOA membership, provide governing documents, and obtain an HOA resale certificate ($150–$400). The resale certificate confirms the seller is current on dues and lists any violations, architectural restrictions, or pending special assessments. Buyers have the right to review HOA documents and can terminate the contract if terms are unacceptable.

How do Texas property taxes affect my sale?

Texas property taxes (1.6–2.2% effective rate) are among the highest in the nation. This affects buyer affordability and, by extension, what buyers will pay for your home. A buyer with a fixed monthly budget can afford a higher purchase price in a low-tax state than in Texas. Make sure your pricing accounts for this. Highlight the homestead exemption (up to $100,000 off school taxes) as a selling point to buyer prospects.

The Bottom Line

Texas is one of the best states in the country for sellers when it comes to taxes — no transfer tax and no state income tax mean more money in your pocket. The trade-off is higher property taxes, which affect how buyers value your home, and a comprehensive disclosure process that requires honesty and thoroughness.

The biggest controllable cost is the listing commission. On a $340,000 Texas home, switching from a 2.75% listing agent to a flat fee service saves $8,000 or more. Whether you choose Ridley Essentials at $999, Ridley Pro at $3,499, or another flat fee option, the math consistently favors flat fee for sellers willing to take a more active role in their sale.

See the full breakdown of costs to sell a house or compare selling costs across all 50 states.

Last updated: March 2026