Seller FAQs
Before You Sell
Q: How do I choose the right real estate agent to sell my current home? A: We recommend interviewing several licensed Realtors® and ask about: Their experience and recent sales; Their knowledge of the local market; How they determine home value and pricing strategy; What marketing plan they use to attract buyers; How long homes typically take to sell under their guidance.
Q: How long will it take to sell my home? A: The timeline varies with market conditions, pricing, and preparation. But many homes in Texas sell anywhere from 30 - 90 days after listing, depending on demand and price.
Q: Can I sell my current home and buy another at the same time? A: Yes, however your specific financial situation will determine the best approach. Possible strategies include: Buying first and coordinating timelines; Selling first and renting temporarily; Buying with a contingency to sell your current home; Negotiating extended closing dates to align both transactions.
Q: What costs can I expect when selling my home? A: Seller closing costs in Texas typically range from 8-10% of the sales price and often include: Agent Commissions (typically set as negotiable % of sales price); Escrow and Closing Fees; Title Insurance; Transfer and Recording Fees; Prorated Property Taxes and HOA Dues; Attorney Fees and any Credits.
Working with a Licensed Realtor®
Q: What determines how much my home is worth? A: A licensed Realtor® will perform a Comparative Market Analysis (CMA), looking at: Recent sales of similar homes ("comps") nearby; Homes currently listed or under contract; Local market trends and conditions.
Q: Should I sell "as-is" or make upgrades first? A: Selling "as-is" may attract quicker offers but often at a lower price. Strategic updates - cosmetic or structural - can make your home more marketable and potentially increase net proceeds. Your agent can help evaluate the best approach.
Q: What should I do to get my home ready to sell? A: Common preparation steps include: Decluttering and deep cleaning; Making necessary minor repairs; Painting or replacing worn carpet and flooring; Enhancing curb appeal and staging the interior of the home.
Q: What is the difference between staging and repairs? A: Staging is arranging furniture and décor to highlight features and appeal to buyers. Repairs fix functional issues (leaks, worn flooring, etc.). Staging can increase perceived value; repairs ensure fewer inspection negotiation issues.
Q: What disclosures am I required to make as a seller? A: In Texas, sellers must provide a Seller's Disclosure Notice, listing known issues (structural problems, past repairs, previous flooding, termite infestations, environmental issues, etc.). This helps buyers understand what they are purchasing before being legally committed. For sellers, proper disclosure reduces the risk of lawsuits related to fraud or Deceptive Trade Practices Act (DTPA) violations.
Q: What is the MLS and why is it important? A: The Multiple Listing Service (MLS) is a private, industry-operated database where real estate agents list properties for sale. Once your home is on the MLS, it immediately syndicates to other high-traffic sites like Zillow, Realtor.com, and Homes.com, increasing visibility.
Q: What is a home warranty when selling a house? A: A home warranty is a service contract that covers the cost of repairs for major appliances and systems in your new home. Most home warranties are valid for one year and generally cover repairs for the following: Washer and Dryer; Refrigerator, Oven, Stove, Dishwasher, Garbage Disposal; Plumbing and Electrical Systems; Heating and Cooling Systems. We advise sellers to be willing to include a home warranty. A home warranty offers the mutual benefit of protecting the seller from liability and provides coverage for the buyer in the event of unforeseen repairs. Including a home warranty is a perk that can help motivate a buyer to purchase your home over another. Home warranty fees are usually included in closing costs, which are negotiable between the buyer and seller.
During the Transaction
Q: What is escrow and how does it work when selling a home? A: After accepting an offer, the buyer's earnest money goes into an escrow account held by a third party (such as a mortgage servicer or title company). The home stays in escrow while inspections, appraisals, and financing finalize. Once all conditions of the contract are met, ownership and funds are transferred at closing.
Q: What does "contingent" mean in real estate terms? A: Contingent means the seller has accepted an offer subject to certain conditions (for example, the sale of a buyer's current home.)
Q: What happens during a home inspection and appraisal? A: Inspection - a licensed home inspection professional checks major systems (HVAC, plumbing, roof, structural, etc.) and documents all findings in a report provided to the buyer. In some cases, the seller chooses to get a pre-listing inspection to identify problem areas and address them prior to listing the home for sale. Appraisal - the buyer's lender orders an independent valuation to confirm the loan amount. If issues arise where the appraisal value comes in lower than the loan amount, further negotiations will follow.
Q: What tax implications could selling have? A: The impact that selling may have on your taxes depends on the length of time that you've owned and lived in your home as your primary residence. For instance, capital gains taxes are dependent on a range of factors, including your income, costs, and net proceeds from the sale of your home. Depending on your specific circumstances, you may qualify for a range of tax breaks. Consult your CPA for personalized advice supportive of the latest tax rules and regulations.