Selling House for Cash: The Ultimate Beginner’s Guide for Texans

Selling House for Cash: The Ultimate Beginner’s Guide for Texans

So, you finally decided to sell your house for cash? Perhaps, someone advised you to choose this option or you heard about it in the news and want to give it a try.

Well, cash house sales are very popular in the US. January of 2024 recorded an all-time high with 32% of the home sales being cash. This is a surprisingly huge portion taken by cash sales since 2014.

However, beware because not all cash home buyers are safe. You need to be careful about these dealings and must know the entire process to avoid being scammed. That’s why DTX Equity is here to help you out!

In this guide, we will discuss everything about selling house for cash in Texas. From what it is to required documents and top cash home buyers, read more to unlock expert insights. 


What is a Cash House Sale?

A cash house sale is when a property is sold outright for cash, without the need for a mortgage or loan. So, the buyer pays the full price of the property with readily available funds. This allows for a quicker and often simpler transaction.

For example, imagine you own a house worth $200,000 and find a buyer who has that amount available in their bank account. Instead of applying for a mortgage or loan from a bank, the buyer transfers the full $200,000 directly to you. This doesn’t involve any lenders or lengthy financing processes – hence, it’s called a cash house sale.


Benefits of Selling a House for Cash

  1. Faster Transaction: Cash sales can be completed more quickly since there’s no need to wait for mortgage approvals, appraisals, or lengthy paperwork. This can significantly speed up the closing process.
  2. Certainty of Sale: With cash transactions, there’s less risk of the sale falling through due to financing issues. Once the buyer commits, the sale is more likely to be completed without complications.
  3. As-Is Sales: Cash buyers are often more willing to purchase the property “as-is,” meaning you may not need to make repairs or renovations before selling. This saves time and money.
  4. Reduced Fees: Without the involvement of a mortgage lender, you can avoid certain fees, such as loan origination fees and appraisal costs. This potentially reduces the overall cost of the sale.
  5. Less Stress: The simplicity and speed of a cash sale can reduce the stress associated with selling a home. It makes a more straightforward experience for both the buyer and the seller.


What Happens When You Sell Your House for Cash?

When you sell your house for cash, the process is usually quicker and simpler than a traditional home sale. Here’s a detailed explanation of how it typically works:

Initial Contact and Offer

First, you need to find a cash buyer. This could be an individual buyer, a real estate investor, or a company that buys houses for cash. Once you’ve identified potential buyers, you’ll reach out to them, and they’ll likely want to see your property. 

After they’ve inspected your house, they’ll make you an offer. This offer is usually based on the current condition of your home, its market value, and the cost of any necessary repairs.

Negotiation and Acceptance

You can either accept the offer, reject it, or negotiate for a better price. Unlike traditional sales, cash offers often come with fewer contingencies – meaning there are fewer conditions that must be met for the sale to go through. This can simplify negotiations. 

Once you agree on a price, you’ll sign a purchase agreement. This document outlines the terms of the sale, including the sale price and the closing date.

Title Search and Escrow

After the purchase agreement is signed, the buyer will typically conduct a title search to ensure there are no legal issues with the property, like unpaid taxes or liens. In Texas, as in many states, a title company usually handles this process. 

The title company also sets up an escrow account. An escrow account holds the buyer’s money until the sale is finalized. This ensures that both parties fulfill their obligations before the money is transferred.

Home Inspection

Even though cash sales are often “as-is,” meaning you don’t have to make repairs, the buyer may still want a home inspection. This helps them understand the condition of the house and any potential issues. 

In Texas, it’s common for cash buyers to conduct their own inspections rather than relying on formal home inspectors.

Closing the Sale

The closing process is when the property officially changes hands. In a cash sale, closing can happen much faster than in a traditional sale, often within a week or two. 

At closing, you’ll sign the deed transferring ownership to the buyer, and they’ll provide the due funds. In Texas, a title company or a real estate attorney usually facilitates the closing.

Final Steps

Once the sale is closed, the title company or attorney will record the new deed with the county. This makes the transfer of ownership official. 

You’ll receive the cash, minus any closing costs or fees you agreed to pay, such as title insurance or property taxes. Finally, you’ll hand over the keys to the new owner.


Specifics for Texas

In Texas, property sales are generally governed by state-specific laws and regulations. One key detail is that Texas is a “community property” state, which means if you’re married, both spouses must agree to sell the house and sign the necessary documents. 

Also, Texas has a homestead exemption that protects a portion of your home’s value from property taxes and creditors, which can influence the sale process.


What Documents Do You Need to Sell Your House for Cash?

When selling your house for cash, you need to gather several important documents to ensure a smooth transaction. Here are the key documents typically required:

1. Property Deed

The property deed is a legal document that proves you own the house. It will be transferred to the buyer at closing to officially transfer ownership.

2. Sale Contract

This is the agreement between you and the buyer outlining the terms of the sale, including the purchase price, closing date, and any contingencies. Both parties must sign this document.

3. Title Report

A title report is necessary to prove that you have a clear title to the property, free of any liens or legal claims. The title company usually provides this report after conducting a title search.

4. Proof of Ownership

Along with the deed, other documents may be needed to prove ownership, such as past property tax receipts or mortgage statements.

5. Disclosure Documents

In many states, including Texas, sellers are required to provide disclosure documents detailing any known issues with the property, such as structural problems or past repairs.

6. Mortgage Payoff Statement

If you still owe money on a mortgage, you’ll need a payoff statement from your lender showing the exact amount needed to pay off the loan.

7. Closing Statement

The closing statement (or HUD-1 form) itemizes all the financial aspects of the sale, including the purchase price, closing costs, and how funds will be distributed. This is usually prepared by the title company or closing agent.

8. Bill of Sale

This document lists any personal property, like appliances or furniture, included in the sale. It serves as a receipt for these items.

9. ID and Social Security Number

You’ll need to provide a government-issued ID and your Social Security number for identity verification and tax purposes.

10. Homeowners Insurance Information

Provide details about your homeowner’s insurance policy to ensure coverage is properly transferred or canceled.

11. Property Tax Information

Include recent property tax statements to show that taxes are up to date. This helps avoid any disputes over unpaid taxes.

12. Home Inspection Reports (if applicable)

If any recent home inspections have been conducted, provide these reports to the buyer. While not always required in cash sales, they can help build trust.


Specifics for Texas

In Texas, you may also need to provide:

  • Seller’s Disclosure Notice: Required by Texas law, this form details the condition of the property and any known defects.
  • HOA Documents: If your home is part of a Homeowners Association (HOA), include HOA bylaws, rules, and recent meeting minutes.
  • Water District Notice: If your property is in a water district, Texas law requires a notice to be provided to the buyer.

By having these documents ready, you can facilitate a smooth and efficient cash sale of your house.


How Much Cash Do You Need to Sell Your House?

The amount of cash you need to sell your house primarily depends on the costs associated with the sale.

  • Closing costs

Closing costs typically range from 1% to 3% of the sale price and include fees for the title search, title insurance, escrow services, and any other administrative expenses. For example, for a $200,000 house, closing costs could be between $2,000 and $6,000.

  • Repairs and improvements

If you need to make repairs or improvements to make your house more attractive to buyers, these costs can vary widely. 

Minor repairs might cost a few hundred dollars, while significant renovations could cost thousands. It’s essential to assess the condition of your home and determine what needs to be fixed before putting it on the market.

  • Real estate agent commissions

If you use a real estate agent, the commission is usually around 5% to 6% of the sale price. For a $200,000 house, this could be $10,000 to $12,000. 

However, when selling for cash, you might opt to sell without an agent, saving on this cost. Selling without an agent can require more effort on your part but can result in significant savings.

  • Mortgage payoff

If you still owe money on your mortgage, you’ll need to pay off the remaining balance. Contact your lender to get a payoff amount, which includes the principal balance and any interest or fees. Knowing this amount is essential as it directly impacts the proceeds from your sale.

  • Staging & marketing expenses

To attract buyers, you might invest in staging your home and marketing it. 

Staging costs can range from a few hundred to several thousand dollars, depending on the extent of the staging and the market. Marketing costs, such as professional photography and online listings, can also add a few hundred dollars.

  • Taxes and other fees

You’ll need to pay any outstanding property taxes up to the closing date. Plus, there may be transfer taxes or recording fees, depending on your location. These costs can vary, so it’s important to get detailed estimates.


Specifics for Texas

In Texas, the seller often pays for the title insurance policy, which can be about 0.5% to 1% of the sale price. The state does not have a transfer tax, which can save you some money compared to other states.

Example Calculation

Let’s say you’re selling a $200,000 house in Texas:

  • Closing Costs: $4,000 (2% of sale price)
  • Repairs and Improvements: $1,000
  • Realtor Commission: $12,000 (6% of sale price, if applicable)
  • Mortgage Payoff: Varies (e.g., $150,000)
  • Staging and Marketing: $500
  • Title Insurance: $1,500 (0.75% of sale price)
  • Property Taxes: Varies (e.g., $1,000)

Total estimated cash needed: $20,000 (excluding mortgage payoff)


Choosing the Best Cash Home Buyer for Your Needs

Okay, so now we have covered all the basics of cash house selling. So, let’s talk about choosing the best cash home buyer – which is very important for a smooth and profitable sale. 

Start by researching the buyer’s reputation and looking for positive reviews (if they are a company) to ensure reliability. Experience in the market is important for navigating any challenges. 

Also, ensure the company offers transparent and fair pricing without hidden fees and can close quickly and flexibly to fit your schedule. Professionalism and good communication are also essential for a hassle-free process.

Ready to sell your home fast? Consider DTX Equity – a highly reputable cash home buyer in Texas!

DTX Equity buys properties as-is and offers competitive market rates. With our extensive experience and local expertise, we provide a straightforward and efficient process. Our promise is to make the sale quick and stress-free. 

We are proud to be known for our transparency, fairness, and excellent customer service. This makes us a top choice for Texas homeowners looking to sell their houses for cash. Choosing DTX Equity means choosing reliability, professionalism, and peace of mind.


Get a free cash offer or call us at (972) 433-6888 today!


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