For Sale By Owner

Yes, and some owners do. Give it a set window, often three or four weeks, and keep track of showings, feedback and offers. Start at a realistic price, because buyers and their agents notice a home that sat or dropped its price, and that history can follow it when you list. If it doesn't work out, call us; we'll start from what you learned, with no pressure either way.

From recent sales of homes like yours, not from an online estimate. Appraisers generally rely on sales from the last six months, so weight those most, and look back as far as 12 months so you don't miss a similar sale. Adjust for size, condition, updates and lot, then compare with the active listings buyers will see next to yours. For a second opinion, our home value page gives you an instant range, and we'll prepare a free written pricing analysis, a comparative market analysis rather than an appraisal, with no obligation, even if you sell it yourself or are weighing an instant cash offer.

No law requires it. Since August 2024, offers to pay buyers' agents can't be advertised in the MLS, and each buyer's agent is paid under a written agreement with the buyer. You can offer a set amount toward the buyer's agent, offer the buyer a set credit toward their costs, decide offer by offer, or offer nothing. Many offers ask the seller to cover some of it, so weigh that request along with the price, financing and dates, and decide what you're comfortable with. Put whatever you agree to in writing, so the title company can pay it at closing.

No. The buyer's agent works only for the buyer. Expect TREC's Information About Brokerage Services notice from them, and their brokerage may ask you to sign a form confirming that the agent represents only the buyer; it's common in by-owner sales and keeps anyone from assuming the agent is helping you. They can share facts and handle their side's paperwork, but they can't advise you on price or negotiate for you. If you want someone on your side, that's a listing agent or a real estate attorney.

Ask for a lender's pre-approval letter or proof of funds before you schedule a showing or negotiate, and call the lender. A wholesaler tries to put your home under contract at a lower price, then sells that contract to an investor for more, and may cancel at the last minute if no investor bites. Watch for "and/or assigns" after the buyer's name and an unusually long option period. Generic emails that say they're "from FSBO" or saw your listing, and push for a call without naming a buyer, usually aren't buyers, so keep personal and financial details to yourself until you know who you're dealing with.

Start with the small things buyers and inspectors notice first: fresh caulk around tubs, showers and toilets, paint touch-ups, burned-out bulbs, dripping faucets and any sign of a past leak. Then handle the items an inspector would flag, such as electrical, plumbing, roof or structural issues, or price them in. Skip big remodels unless recent sales show buyers pay more for them.

You'll set the times, open the home and follow up. Agents usually tour with their buyers, so answer calls quickly, offer times that work for buyers, and ask each agent for feedback afterward; a simple log of each showing helps. Keep the conversation on the home and its features, and keep your negotiating position to yourself: why you're moving, your deadline, your lowest price and the terms of other offers all help the buyer's side. Point buyers to your Seller's Disclosure Notice for the home's condition and history.

Not on your own. Only licensed real estate professionals who subscribe to HAR's MLS can enter a listing there, and the MLS feeds HAR.com and the searches Houston-area agents run for their buyers. As a by-owner seller, you can advertise on websites that accept owner listings, on social media and with a yard sign. Most buyers shop with an agent, so many of them first see homes through the MLS.

Yes, in most cases. Buyers' agents write offers on TREC's contracts, which are free on TREC's website: the One to Four Family Residential Contract (Resale), form 20-19, for houses, and the Residential Condominium Contract (Resale) for condos, plus addenda such as the Third Party Financing Addendum when the buyer gets a loan. TREC's forms are written for trained license holders, and TREC says anyone else who uses them assumes the risk, so have a real estate attorney review the contract if no agent is involved. Most sellers of a house, townhome or condo must give the buyer a Seller's Disclosure Notice (Texas Property Code §5.008; TREC form 55-1) on or before the day the contract is signed; if the buyer gets it later, the buyer can terminate within seven days. Homes built before 1978 need the federal lead-based paint disclosure, and homes in a MUD or other water district need the statutory district notice.

In Texas, the title company is the neutral escrow and closing agent. It holds the earnest money, searches the public records and issues a title commitment, pays off your mortgage from your proceeds, prepares the settlement statement, collects signatures and funds the sale. It doesn't represent you or the buyer and can't advise you on price or terms. In the Houston area the owner's title policy is customarily the seller's cost, though the contract decides, and Texas sets title insurance premiums, so the premium is the same at every title company.

After the contract is signed, the buyer delivers the earnest money and the option fee to the title company within 3 days after the effective date. The option period, often 5 to 10 days, lets the buyer inspect and terminate for any reason before 5 p.m. local time on its last day; option fees usually run about $100 to $1,000. If the buyer terminates in time, the earnest money goes back to the buyer and you keep the option fee; if the sale closes, the option fee is usually credited toward the price. There's no required earnest money amount, and about 1% of the price is common in the Houston area.

Often not. The TREC resale contract lets the seller provide the existing survey with a T-47 affidavit or T-47.1 declaration, Texas Department of Insurance forms in which you state that nothing has changed since the survey, such as a new fence, pool or addition. If the title company or the buyer's lender won't accept it, a new survey is ordered, and the contract's survey paragraph says who pays. Find your survey early; it's usually in the closing papers from when you bought the home.

If the buyer is getting a loan, the lender lends based on the lower of the price and the appraised value, so a low appraisal leaves a gap. The usual options are a reconsideration of value through the buyer's lender with better comparable sales, the buyer paying some or all of the difference in cash, or a lower price. Depending on the contract, the buyer may be able to walk away, so know your bottom line before the appraisal. Giving the appraiser recent comparable sales and a list of your updates before the visit helps.

Time on the market depends on the price, the home's condition and that month's market; HAR's monthly market report shows current days on market for the Houston area. Once you're under contract, a financed sale typically closes in about 25 to 40 days, and a cash sale can close faster. Before you list, allow time for repairs, photos and paperwork, and inside the contract, plan around the option period, the appraisal and the lender's approval.

Expect these to come out of your proceeds: your mortgage payoff, the owner's title policy (customarily the seller's cost in the Houston area), your share of the escrow or closing fee, property taxes prorated to the closing date, deed preparation and recording fees, any HOA transfer or resale certificate fees, and any repairs or credits you agree to. If you agree to pay anything toward the buyer's agent, that's paid at closing too. Ask the title company for an estimate of your net proceeds before you negotiate, so you compare offers on what you'll actually walk away with; our seller net proceeds calculator gives you a first estimate.