Last Updated on March 17, 2024 by Umer Malik
Texas home prices touched $325,500 in February 2022, up 19% year over year as more and more people were drawn there by the state’s pleasant climate and cheap taxes.
Considering these statistics, some homeowners might be considering selling property in Texas using various methods like MLS, FSBO and even approaching discount real estate brokerages.
While all these approaches have their pros and cons, there are certain things you must consider before choosing a method.
In this article, we will answer your most burning questions when you’re selling property in Texas.
Table of Contents
What Price Tag Should You Put When Selling Property In Texas?
Setting a fair price tag for your home is crucial. Keep in mind that the asking price you set for your house is a major factor in how much interest it generates from potential buyers. The selling price is not dependent on the list price.
When selling property in Texas, the main aim of setting a fair price is to lure potential buyers. The price you set on your website will not be the price you get.
Multiple bidders may show interest if the price is set too low. To settle on a final sale price with the buyer, you may choose to use the Highest and Best Offer method or to counter the highest bids. And the price you set will be the going rate.
If you set the price too high, customers won’t buy. You’ll have to lower your asking price till it’s competitive with the market.
You’ll probably sell it for the fair market value whether you set the price too high or too low. To generate interest and maybe numerous bids, real estate agents will generally list homes at a little discount.
When properly handled, a multiple-offer situation might even result in a higher sales price than the property is actually worth.
What Is the Ideal Time to Sell a Home in Texas?
If you time the sale of your property well, you may get top dollar. There is a general consensus that June is the greatest month to sell a home in Texas.
In Dallas, for instance, the month of June may bring in an extra 5.32% when compared to the yearly median selling price. As an added bonus, homes are selling 6 days faster. In any case, the state of Texas as a whole is a very desirable buying environment right now.
There will likely be an increase in interest rates in 2022, which might dampen consumer demand. Therefore, you may as well consider selling your Texas house right now.
What Options Are Available To Your When Selling Property In Texas?
It’s possible to sell a home in Texas through a number of different channels. If you choose wisely and at the correct moment, you may save a lot of money. These are some of the recommended methods:
Flat Fee MLS Listing
Commissions for real estate agents in Texas typically range from $16,000 to $18,000. Cutting out the middle man and paying a listing agent commission by using a cutting-edge website like Houzeo.com is one of the major benefits of a flat fee realtor.
The MLS will promote your property to the fullest extent possible, and you will have access to assistance anytime you require it.
For Sale by Owner
FSBO (For Sale by Owner) sales allow Texans to avoid paying the state’s high real estate agent commissions (FSBO). There is no need for a listing agent, as the process is handled entirely independently.
Even though they have complete authority, sellers are responsible for processing all documentation without assistance. It might be risky to sell your property “for sale by owner” in Texas.
You may avoid paying a real estate agent’s commission by selling your home on your own, but you’ll be responsible for the whole process from listing to marketing to negotiations to closing.
Traditional Full-Service Agent
If you need assistance selling your house, you may always employ a full-service agent. The agent will be there for you every step of the way, from advertising to finalizing the deal.
But, you can expect to pay a full commission of 2.5% to 3% to the listing agent. And the entire commission is still due even if you locate an unrepresented buyer.
Discount Real Estate Brokerages
If you’re looking for a bargain broker who doesn’t charge the standard 6% plus expenses, consider working with a low-commission realtor or agent. The real estate commission is decreasing as the flat fee model and commission-based models gain popularity.
Due to this, low-commission bargain brokers become increasingly useful to sellers around the country. Some brokerages, for instance, provide turnkey solutions for as little as 1% or 2% in broker fees. This is inclusive of the entire process, from listing to closing.
Flat Fee Brokers
The commission paid by the seller to the broker is known as a flat rate. Full-service brokers are the norm among those that provide flat rates. From putting your home on the market to the final closing paperwork, they have you covered.
There will be no adjustments to these costs regardless of the number of bathrooms on your property or how much you decide to sell it for. If you’re looking at a higher-end property, a flat rate is the way to go.
If your home is worth $450,000 and you choose a flat-rate pricing approach, the listing cost may be $3,500. The standard commission for a real estate agent is about $27,000. You’ll have to pay for things like concessions, escrow fees, and warranties in addition to the buyer’s agent commission.
What is The Overall Cost of Selling Property in Texas?
It’s important to remember that the sale price and the Texas Realtor’s commission aren’t the only two variables in a real estate transaction.
A seller in Texas has to be aware of and prepared for a variety of extra costs associated with selling a home. The seller might use the list to answer the question, “How much will it cost to sell my property in Texas?”
The following is a list to get you going in the right direction:
Transfer Tax:
In Texas State, there is no such thing as a Transfer tax.
Home Warranty:
If the seller knows that any major appliance (heating and cooling system, water heater, electrical systems) will need maintenance, they may choose to include a house warranty in the sales contract. Buyers will profit from this in the event that a house part ever stops working.
Appraisal Fees:
To get an accurate market value, an appraiser is usually consulted. Appraisal fees can fluctuate widely based on aspects including the nature of the property being valued, its size, and its location. The cost is often borne by the customer. In Lone Star State, the average cost of a house evaluation is $322.
Capital Gains Texas:
The profit you made on the sale of the property must be taxed. The profit made while selling an asset for more than you paid for it is known as a capital gain.
Title Insurance:
Both a Lender’s Title Insurance Policy and an Owner’s Title Insurance Policy are available to Texans. The former safeguards lenders from problems that might arise from flaws in the title. The latter shields the purchaser from potential lawsuits and liens.
Attorney Fees:
In Texas, a real estate attorney is not mandated by law but is strongly suggested. Hiring a real estate lawyer helps ease the burden of paperwork and other closing procedures.
Title or Escrow Fees:
A title or escrow business is typically involved in the closing process in the Lone Star State. They are about $350 in price.
Inspection Fees:
Costs in Texas for a standard home inspection typically range between $350 and $600. In addition to this, other inspections including those for pests, pools, roofs, etc., are performed.
Survey Fees:
Before closing on a property, a survey is often conducted. All aspects of the property are included.
Other Costs:
There are a plethora of extra expenses associated with selling a house in Texas in addition to those already mentioned. Stamp taxes, recording fees, estoppel fees, and other similar charges may fall under this category if they are levied by the municipality or county. There may also be costs associated with relocating, preparing your house, etc.
Conclusion
When selling property in Texas, sellers should consult a real estate agent before attempting to sell their home. However, sellers are shifting away from the conventional full-service route as a result of the high commissions charged by real estate agents.
There has been a rise in the number of people selling their homes independently. It’s economical, but it severely restricts sellers’ options and significantly increases their obligations. Because of this, discount real estate brokerages are a viable alternative.
Another option is using a flat-rate realtor like Houzeo that offers maximum exposure and gives power to sellers.
You can choose to market your home as the owner of Houzeo and facilitate a quick and easy closure using this platform. Since the system is entirely web-based, you won’t have to deal with any complicated procedures.
You may save time and money by using it to automate the processes involved in listing your home on the Multiple Listing Service. Importantly, average real estate commissions are falling as a result of websites like Houzeo.
Apart from this, if you are interested to know about All About Closing Costs in Texas then visit our Home improvement category.
