Selling a House in Houston: The Complete Texas Seller Guide

Selling a house in Houston is not the same transaction it would be in California, Florida or New York. Texas has its own contract forms, its own disclosure statute, no state income tax, no real estate transfer tax, title companies instead of closing attorneys, and — unusually — no public record of what houses actually sell for. This guide covers what changes because of that.

Before you list: the four documents to gather

• The recorded deed. Confirms exactly how title is held and who has to sign. Inherited property where the estate was never probated is the single most common cause of delayed Houston closings.
• The existing survey. With a signed T-47 residual affidavit, a Texas title company will usually accept it rather than requiring a new one — saving both time and a few hundred dollars.
• Your mortgage payoff statement. Not the balance on your app: an official payoff good through a specific date, because interest accrues daily.
• HOA information. Management company contact, dues, and the resale certificate, which under Texas Property Code section 207.003 the association may charge for and take time to produce.

The Texas Seller's Disclosure Notice

Texas Property Code section 5.008 requires the seller of most residential property with up to four dwelling units to deliver a written disclosure notice to the buyer. There are statutory exemptions — including transfers by an executor or administrator of an estate, transfers by a trustee in a foreclosure, and certain transfers between co-owners or family members — but they are narrower than sellers often assume.

Two Houston-specific points matter more than the rest of the form:

1. Flood history. Since House Bill 1526 took effect in 2019, the notice asks directly whether the property is in a 100-year floodplain, whether it has flooded, and whether there have been flood insurance claims. Post-Harvey, this is the section buyers read first.
2. Structural and repair history. Houston's expansive clay soil makes foundation movement common. Previous repairs are not a problem; undisclosed previous repairs are.

Answering "unknown" to something you do know is where sellers get themselves into trouble after closing. Disclosure is a shield, not a liability — it converts a future dispute into a documented, accepted fact.

Other required notices

• MUD notice. If the property is in a municipal utility district — very common in Katy, Cypress, Spring and much of Fort Bend — Texas Water Code section 49.452 requires notice before the contract binds. Failure to deliver it gives the buyer a termination right.
• HOA resale certificate, where an association exists.
• Lead-based paint disclosure, federally required for homes built before 1978.

What it costs to sell a house in Houston

Good news first: Texas levies no state or county real estate transfer tax, and title insurance premiums are set at the state level rather than shopped between companies. A Houston seller's closing costs are modest compared with most large US metros. Expect:

• Mortgage payoff plus per-diem interest.
• The owner's title policy. Customarily the seller's cost under the standard Texas residential contract, though the allocation is negotiable.
• Prorated property taxes. See the next section — this one surprises people.
• Escrow, document preparation and recording fees.
• HOA transfer and resale certificate fees, where applicable.
• Commission, if you list. Negotiable, and commonly in the region of five to six percent combined.
• Payoff of any liens — property tax loans, contractor liens, judgments, IRS liens — all of which must be released before the title company will insure the sale.

Why you owe property taxes you have not been billed for

Texas property taxes are billed in arrears: the bill that lands in October covers the year you have already lived through, and is generally due by the end of January. When you sell mid-year, the title company prorates the year's taxes and credits the buyer for the days you owned the property. On the settlement statement it looks like a deduction; in reality it is tax you already owed and had not yet been asked for.

Related: if you have a homestead exemption, it is tied to you, not to the house. It does not transfer to the buyer, and the property's taxable value may be reassessed after the sale — which is worth understanding when a buyer quotes you their expected monthly payment.

Tax on the sale itself

Texas has no state income tax, so the question is entirely federal. If the property was your main home and you satisfy the ownership and use tests, a substantial portion of gain can be excluded from federal capital gains tax. Investment property and second homes do not receive that treatment. Inherited property generally receives a stepped-up basis as of the date of death, which frequently means little or no taxable gain on a prompt sale. Your title company will typically issue a Form 1099-S. Talk to a tax professional about your specific numbers — this is the part of a sale where general advice is worth the least.

The timeline, realistically

• Preparation: days to weeks, depending on condition and how quickly the documents above come together.
• On market to under contract: highly variable by submarket, price band and condition.
• Under contract to closing, financed buyer: commonly thirty to forty-five days, driven by the lender's appraisal and underwriting.
• Under contract to closing, cash buyer: as little as one to three weeks, limited by title work.
• Option period: the standard Texas contract includes a paid termination option giving the buyer an unrestricted right to walk during a negotiated window. Its length and cost are both negotiable, and both matter to you.

Listing versus selling direct

For a maintained, financeable house in a neighbourhood where buyers compete, listing almost always nets more even after commission — that competition is worth more than the fee. A direct sale earns its discount when the house will not pass a lender's condition requirements, when the deadline is not yours to control, or when the carrying cost of holding the property is eating the difference.

The way to decide is not to argue about it in the abstract. Get an agent's view of list price and at least two direct offers, then compare net proceeds side by side. Our guide to the Houston buyer pool covers which route your house realistically qualifies for, and the fast-sale page covers what changes when the clock matters.

If the listing route is the right one, our licensed partner in this market is Veronica A. Medellin, REALTOR® at HomeSmart (Texas licence #0614869) — a bilingual agent covering Houston and Sugar Land. Her site, veronicasellshouston.com, was built and is maintained by Domestic Real Estate, and carries her current listings, neighbourhood guides and a free valuation request.

Frequently asked questions

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

Not usually. Texas closings are handled by title companies rather than closing attorneys, and the standard promulgated contract forms are designed to be used without one. An attorney is worth engaging for probate, contested ownership, or an unusual contract.

Can I sell a house in Houston without an agent?

Yes. Texas permits an owner to sell their own property without a licence. The trade-off is exposure — the MLS is how you reach the financed owner-occupants who typically pay the most.

Who pays closing costs in Houston?

Both sides pay some. By custom the seller pays the owner's title policy and their own prorated taxes and payoff; the buyer pays lender-related costs. All of it is negotiable under the standard contract, and cash buyers competing for a property will often absorb more.

How much are property taxes in Houston?

Harris County has one of the higher effective residential property tax rates in the country, because Texas funds local government through property tax rather than income tax. Your actual rate is the sum of county, city, school district and any MUD or special district rate for the specific address.