Prepping Your Home for Sale in Austin Texas

Hot Texas Market: Austin is often considered a hot real estate market, though it can fluctuate. You’ll want to keep an eye on the latest trends to ensure you’re pricing and timing your sale correctly.
Seasonality: In Texas, the busiest months for real estate sales are typically spring and summer, when families are moving before the school year starts. However, fall and winter can sometimes offer less competition, though the buyer pool may be smaller.
Texas Property Taxes: Property taxes in Texas are higher than in many other states, and buyers are aware of this. This could affect their overall offer, so be sure to factor this in when negotiating.

Local Knowledge: A real estate agent who knows the local Austin market is invaluable, especially when dealing with unique Texas laws and local nuances. They’ll know how to navigate the market to get the best price and guide you through the legal process.
TX-Specific Disclosures: In Texas, sellers are required to provide a Seller’s Disclosure Notice (SDN), detailing any issues with the property, such as past flooding, structural problems, or foundation issues. Be prepared to answer questions and be transparent.

Termite Inspections: Texas is known for its warm climate and the risk of termites, so buyers will likely request a termite inspection. You may want to preemptively have your home inspected to avoid last-minute surprises.
Foundation Inspections: Many homes in Texas (especially in Austin) are built on expansive clay soil, which can shift and cause foundation issues. Buyers are often wary of this, and foundation inspections are a standard part of the process.
Flood Zones: Austin is prone to flash flooding, so it’s important to know if your home is in a floodplain. If it is, you may be required to provide a flood disclosure, and it could impact the sale price or financing options for buyers.

Title Company: Unlike many other states, in Texas, a title company typically handles the closing, not an attorney. They manage the paperwork, confirm that the title is clear, and handle the funds.
Seller’s Closing Costs: In Texas, sellers typically pay real estate agent commissions (around 5-6% of the sale price), title insurance (for the buyer’s benefit), and any agreed-upon repairs. You may also have to cover property taxes through the closing date.

No “Cooling-Off” Period: Texas is a “buyer beware” state, which means there is no formal cooling-off period where the buyer can back out after committing to a deal. However, buyers often negotiate contingencies, such as inspection contingencies, which can still allow them to back out if issues arise.
Homestead Exemption: If you currently benefit from Texas’ Homestead Exemption, be aware that selling your primary residence will end your exemption for that property, and the new owners will need to apply for their own. This might affect your property taxes.
Property Condition: Texas law requires that the seller disclose certain defects in the home (as mentioned earlier), and the buyer has the right to back out of the deal if serious issues are found after an inspection.

Clear Title: One of the most important parts of selling a home is ensuring you have a clear title to the property. This means there are no outstanding liens or claims on the property. If there are any, you’ll need to take care of them before closing. The title company will help ensure there are no issues.
Deed Restrictions: Be aware of any local deed restrictions or neighborhood association rules that might affect your sale. These are often tied to the property’s title and may impact what buyers can or can’t do with the home.

Texas VA Loans: Austin has a large military presence, and many veterans use VA loans (Veterans Affairs loans) to buy homes. This can affect the type of buyer you attract. VA loans have specific requirements for the condition of the home (like no peeling paint or structural issues).
Texas Homestead Protection: Texas offers homestead protection, which can help protect homeowners from certain types of creditors. If the property is your primary residence, this could affect the type of buyer who is eligible for a mortgage, especially if they are looking for government-backed loans.

No State Income Tax: One of the advantages of selling in Texas is there’s no state income tax, which means you won’t be taxed on the proceeds of your home sale at the state level. However, federal capital gains tax may apply if the home has appreciated in value and you’ve lived there for less than two years.
Property Taxes: Texas has high property taxes, so be sure to calculate this into your selling price and ensure that buyers are aware of their potential property tax burden.