How to Sell a House As-Is in Texas

Selling a house “as-is” in Texas means you sell it in its current condition and don’t make repairs before closing. It is a common way to sell a house that needs work, an inherited house you don’t want to fix up, or a rental you want to be done with. But as-is does not mean “no questions asked.” Texas law still requires most sellers to disclose what they know, buyers can still inspect, and the way you sell decides how much the condition will cost you.

This guide explains what as-is means in a Texas contract, what you still have to disclose, your three ways to sell, the costs to expect, a worked example, and a checklist. It is general information, not legal advice; a Texas real estate attorney or your title company can confirm what applies to your sale.

What “as-is” means in a Texas contract

Most Texas home sales use the One to Four Family Residential Contract (Resale) promulgated by the Texas Real Estate Commission (TREC). Paragraph 7D of that contract is where the buyer accepts the condition of the house. According to the Texas Real Estate Research Center at Texas A&M, “as is” there means the present condition of the property with any and all defects and without warranty, other than the title warranties and the warranties in the contract itself.

Paragraph 7D gives the buyer two choices:

• Accept the house as-is. The price is based on the house as it stands, and you are not agreeing to fix anything.
• Accept it as-is with specific repairs. You agree to complete named repairs at your expense, usually items already listed in your disclosure or visible on a walkthrough.

When you sell to a cash buyer, the buyer’s own contract may look different, but the idea is the same: read the paragraph that describes the condition of the property and make sure it says you are not making repairs.

What you still have to disclose

Selling as-is does not remove your duty to disclose. Under Texas Property Code section 5.008, a seller of residential property with no more than one dwelling unit must give the buyer a written Seller’s Disclosure Notice. Key points:

• Timing. The notice must be delivered on or before the effective date of the contract. If you sign without giving it, the buyer can terminate for any reason within seven days after receiving the notice.
• Known defects. The Texas Real Estate Research Center notes that sellers must also disclose known material defects, even ones the form doesn’t ask about, and that failing to disclose can lead to a lawsuit from the buyer months or years after the sale.
• Exemptions. The notice is not required for some transfers, including sales under a court order or at foreclosure, sales by a fiduciary administering a decedent’s estate, guardianship or trust, transfers between co-owners, transfers to a spouse or to relatives in the direct line, transfers between spouses under a divorce decree, and transfers to or from a government entity.

The safest approach is simple: fill out the notice honestly and completely, and mention the problems you know about. A buyer who is pricing in the condition anyway gains nothing from a hidden defect, and you protect yourself.

Inspections and the option period

An as-is buyer can still inspect. Under the TREC contract, the buyer may have inspections done at the buyer’s expense, and you must give reasonable access and keep the utilities on. Many Texas buyers also pay for an option period: a short window in which they can terminate the contract for any reason. During that window a buyer may come back and ask for a lower price after the inspection, and if they terminate within the option period, they get their earnest money back.

That is the real risk of an as-is listing: the inspection report becomes a renegotiation. The fewer surprises the buyer finds, the less room there is to retrade, which is another reason to disclose fully up front.

Three ways to sell a Texas house as-is

1. List as-is with a real estate agent

You reach the most buyers and may get the highest price if the house is in fair shape. But most buyers use a mortgage, and the lender orders its own appraisal. A house with serious problems such as a failing roof, foundation movement or no working HVAC can struggle to get financed, and showings, inspections and the option period all take time. You also pay the commissions you negotiate with your agent.

2. Sell it yourself (for sale by owner)

You skip the listing commission but take on the marketing, showings, the contract and the disclosure work yourself, and you face the same financing and inspection issues. See selling without a realtor if you are weighing this route.

3. Sell to a cash buyer

A cash buyer prices the repairs into the offer, so there is no lender appraisal and usually no repair negotiation after the inspection. The offer is typically lower than a retail listing price, but you skip repairs, showings and commissions, and you choose the closing date. This is often the fastest route for a house that needs major work, has tenants in it, or is tied up in a deadline such as a foreclosure.

What it costs to sell as-is in Texas

• No state transfer tax. Texas does not charge a state real estate transfer tax, unlike many other states.
• Owner’s title policy. By custom, the seller usually pays for the buyer’s owner’s title insurance policy in Texas. It is a custom, not a law, so the contract says who pays.
• Payoffs and prorations. Your mortgage, any liens and your share of the year’s property taxes are paid from the sale at closing.
• Commissions. Only if you list with an agent. There is no agent commission when you sell directly to a cash buyer through us.

A worked example

Here is a simple illustration with round numbers (not a real sale). Say a house would sell for about $250,000 fully fixed up, and it needs a roof, HVAC and foundation work that a contractor estimates at $40,000.

• Fix, then list: you pay the $40,000 up front, wait for the work, then list. After commissions and the months of mortgage payments, taxes, insurance and utilities while you repair and sell, your net is well below $250,000, and you carry the risk if the repairs run over or the buyer still finds something.
• List as-is: buyers subtract the repairs and a margin for their trouble, and some can’t get a loan on the house at all. Expect a lower price, a longer wait and a likely renegotiation after the inspection.
• Sell to a cash buyer: the offer is lower than the fixed-up price, but there are no repairs, no commission and no holding months, and the number you agree to is close to what you take home.

The right choice depends on your cash, your time and the house. Compare the net amount you would actually receive in each case, not the headline price. Our post on renovating vs selling as-is goes deeper on the trade-off.

If you are behind on payments

Most Texas foreclosures are non-judicial and can move quickly. Under Texas Property Code section 51.002, foreclosure sales are held on the first Tuesday of the month, between 10 a.m. and 4 p.m., at the county courthouse. The notice of sale must be posted, filed with the county clerk and mailed at least 21 days before the sale, and for a home that is the borrower’s residence the servicer must first send a notice of default giving at least 20 days to cure. That means the time between the first notice and the sale can be short. If you want to sell and keep your equity, start early. See selling a house in foreclosure.

Checklist: selling your Texas house as-is

• Fill out the Seller’s Disclosure Notice honestly, unless your sale is exempt, and deliver it before the contract is signed.
• List the problems you know about: roof, foundation, plumbing, HVAC, past flooding, permits.
• Gather your mortgage payoff, HOA details and any lien or tax information.
• Decide whether you will make any repairs at all; if not, make sure the contract says the buyer accepts the house as-is.
• Get at least one cash offer and one agent’s estimate, and compare the net amounts.
• Ask each buyer whether the price can change after the inspection, and how long any option period lasts.
• Close through an independent title company you can call yourself, and confirm wire instructions by phone. See how to check a cash buyer.

Frequently asked questions

Do I have to make repairs to sell my house in Texas?

No. You can sell the house in its current condition. The buyer may still inspect it and, during an option period, ask for a lower price, but you don’t have to agree to repairs.

Do I still need a Seller’s Disclosure Notice if I sell as-is?

Usually yes. Texas Property Code section 5.008 requires it for most sales of a single-family home, whether or not the sale is as-is. Some transfers are exempt, such as sales by an executor administering an estate or under a court order.

Can a buyer back out of an as-is contract?

Under the TREC contract, a buyer who paid for an option period can terminate for any reason during that period. A buyer who didn’t receive the disclosure notice before signing can also terminate within seven days of receiving it.

Is there a transfer tax when I sell a house in Texas?

No. Texas has no state real estate transfer tax. You still pay the usual closing costs, such as the owner’s title policy if your contract says so, and your loan payoff.

Can I sell an inherited house in Texas as-is?

Yes. An executor or administrator selling for an estate is exempt from the Seller’s Disclosure Notice requirement, though they should still not hide known defects. See selling an inherited property.

Selling a house in Texas as-is? We connect Texas sellers with local cash buyers who make a fair, no-obligation offer on the house as it stands, usually within 24 hours. See we buy houses in Texas or the local pages for Houston, Dallas and San Antonio, then get your free cash offer or call (727) 208-1229.