PAS Framework: How to Sell a House by Owner in Texas: A Step-by-Step Guide

Problem

Selling a home can be a daunting experience, especially if you’re trying to do it yourself. The thought of navigating the real estate market all by yourself can feel daunting for most Texas homeowners. In fact, the National Association of Realtors (NAR) reports that only 8% of home sales in 2020 were "for sale by owner" (FSBO). So when you want to sell your own home with no agent, you’re not just signing on the dotted line of a handful of documents; you’re entering the trenches of pricing your home, effectively marketing it, negotiating with potential buyers, and closing the deal.

Fear of making a mistake leads to overthinking and hesitation. You may ask yourself whether you’ll get a fair price, how to navigate showings, and what to do about negotiating without the backing of a professional. A proper plan is needed to have your house on the market and sell successfully in spite of all these hurdles. So, let’s walk through the process.

Agitation

Now imagine your home hit the market and sat there for weeks, or worse — you feel pressured to take an offer that’s far lower than you expected. It can be frustrating to think about how much time, energy, and money is wasted. The diversity of the Texas housing market, from fast-paced urban centres such as Houston and Austin to small towns, means the strategy for selling is widely disparate. Without such expert guidance, you could overlook important steps that could maximize your profits or complicate your sale.

Also in Texas, you must disclose several things about the property, including known issues and any changes made to the property. Failing to make any of these important disclosures could get you in hot water later.

You may think it would be much simpler to just hand over the keys to a real estate agent. But remember, those hefty commissions — typically 5% to 6% of the sale price — can take a bite out of your profits.

Solution

Fear not! A rewarding, profitable venture like selling your home yourself in Texas can be achieved with the right strategy and steps. The tips below include a more structured plan that you can use, as well as a case study for real-world references.

Step 1: Research the Market

First things first: understand if the market is in your favor. Use online marketplaces like Zillow or Realtor com to see the listings of similar homes in your area. This research is important for fine-tuning the price for competition.

Real World Impact: A Frisco, Texas home seller sold their two-storey home for $350,000 and researched homes in their neighbourhood that sold in the last six months They identified similar-sized homes that had recently sold for about $340,000 to $355,000. This helped them get a good sense on how to price their own home.

Step 2: Prepare Your Home

It’s important to get your house ready for sale. Stage your homeCompile, eliminate, and prepare your house to reach more potential customers. Such actions can include minor repairs, repainting the walls, deep cleaning the carpets, etc. Essentially, it all boils down to better first impression, a tidy home.

Get some good-quality photos. As per NAR, 87% of homebuyers agree that photos are the most useful feature (not including property descriptions) in online property listings. If you can afford it, hire a professional photographer.

Step 3: Disclosure Forms

Get to know Texas property disclosure laws. You have to issue potential buyers with a Seller's Disclosure Notice, detailing the property's state and known defects. Omitting information can backtrack on you legally.

Statistical Insight: In Texas there can be very costly lawsuits if you didn’t disclose properly. I always say it’s better to be more transparent, which protects you from legal fallout.

Step 4: Build a Marketing Strategy

Adequate marketing of your property can go a long way in getting potential buyers in your house. A wide array of platforms should be used including:

Social Media: Using Facebook and Instagram are great platforms to extend your reach. Think about popularising with virtual tours or live streams.

Yard signs: A basic “For Sale by Owner” sign can generate local interest, particularly if it’s positioned in a high-traffic area.

Case Study Insight: The Frisco homeowner started a Facebook group and encouraged friends and family to spread the word about her listing. The post garnered a number of shares, resulting in five interested buyers within the first week alone.

Step 5: Plan Open Houses & Showings

Hold open houses or private showings to entice prospective buyers. Ensure that the home is bright and smells pleasant. Be prepared to answer questions about your home and neighbourhood during showings.

TIP: The agent should have ready a list of nearby amenities, such as parks, schools, shops, etc. Buyers typically like to know what there is to do nearby.

Step 6: Negotiation

When an offer does come in, you’ll enter into the negotiation phase. And be prepared to talk numbers, but don’t let your emotions get the best of you. You know the price range you researched and feel comfortable with — don’t be afraid to counter-offer if the initial offer is too low.

Case Study Insight: The initial offer for this Frisco homeowner’s house was $325,000. Armed with research supporting their anticipated price of about $348,000, they countered at $340,000. After some back-and-forth, they settled on $335,000 and favourable closing terms.

Step 7: Get An Attorney

While it’s not required, having a real estate attorney can offer additional peace of mind. They can assist with closing documents, title transfers and other legalities you may not be entirely at ease with handling yourself. This may be especially beneficial for novice sellers.

Step 8: Close the Sale

Once the negotiation completes and both parties say yes, you’ll have to set up the paperwork. This means checking that everything that was negotiated in the sale agreement is correct and that everyone has signed the required documents.

The closing process usually is conducted by a title company, which guarantees that both parties meet their obligations in accordance to the contract. The title company will also assist with the title transfer and closing process.

Tip: Don’t forget about closing costs. In Texas, these are typically 2% to 5% of the home’s purchase price, split between the buyer and seller per their agreement.

Step 9: The Steps Follow-Up

After the sale closes, you’ll still have to transfer utilities and change your mail address. Notify your homeowners’ insurance of the change.

Case Study Insight: When speaking with the new owners, the Frisco homeowner found it useful to have a list of local utility providers on hand. This made for a slightly smoother transition for those involved.

Conclusion

Kansas City: Selling by owner your home in Texas does not have to be a scary thing. And with a little research, preparation, and property marketing, you can sell your property without a real estate agent to do it for you. It may be a little more work, but the savings can be significant. We’re talking about the Frisco homeowner? They sold their house for $335,000, avoiding agent commissions, and felt competent doing it. With some planning, and the steps outlined in this guide, you can follow in their footsteps and sell your home confidently.

So, get to work now, roll up those sleeves. A success home sale only requires the right approach. Good luck!