Cash Home Buyers in Houston: how the number is built

Nearly all of them work backwards from the resale value. They estimate what the house is worth once repaired, subtract the repair budget, subtract the cost of holding and reselling it, and subtract the profit the deal has to produce. Whatever is left is the offer. The repair estimate is the largest and least precise input, which is why two buyers can look at the same Houston house and be tens of thousands of dollars apart.

A bank statement or a letter from the institution holding the money, dated within the last thirty days, naming the buying entity, and showing at least the purchase amount. A screenshot with the name cropped out, an undated letter, or a private lender approval subject to conditions is not proof of funds — it is a plan. Ask for the real thing before you sign, not after.

Texas has no state or county transfer tax, so seller costs are lower than in many states. Expect your mortgage payoff including per-diem interest, the owner's title policy (customarily paid by the seller under the standard Texas contract, though it is negotiable), escrow and document fees, prorated property taxes, any HOA transfer or resale certificate charges, and the payoff of any liens or judgments against the property.

Texas property taxes are paid in arrears — the bill that arrives in October covers the year you have already been living through. At closing, the title company prorates the year's taxes and credits the buyer for the portion covering the days you owned the property. It reads like a deduction from your proceeds, but it is tax you already owed.

Texas has no state income tax, so the question is federal. If the property was your main home and you meet the ownership and use tests, a substantial amount of gain can be excluded from federal capital gains tax; investment properties and second homes do not get that treatment. Inherited property generally receives a stepped-up basis, which often means little or no taxable gain on a prompt sale. Talk to a tax professional about your own numbers before you close.

More than sellers assume. The repair allowance is the biggest one — bring a real contractor quote and the estimate usually moves. Beyond price, you can negotiate the closing date, a post-closing occupancy period so you are not moving the same day, who pays the title policy and escrow fees, the size of the earnest money deposit, the length of the option period, and whether the contract may be assigned at all.

No. Compare the amount you actually receive at closing after payoff, prorations and fees, and weigh it against the probability the deal closes. A slightly lower offer from a funded buyer with a short option period is usually worth more than a higher one from someone who intends to shop your contract and may re-trade the price after their inspection.