For Sale by Owner in Texas, Part 2: From Offer to Closing

Getting an offer feels like the finish line, but for a seller on their own, it’s really the start of the most demanding stretch. From the first offer to closing day, there are decisions to make, deadlines to track, and plenty of ways for a sale to go sideways. Here’s what to expect.

Reviewing offers

The highest price isn’t always the best offer. You’ll compare how each buyer is paying, how much earnest money they’re putting up, how long they want to inspect the house, when they want to close, which costs they’re asking you to pay, and what they want left behind. A true cash offer with a short timeline can be stronger than a higher offer that depends on a loan and a buyer selling another house first.

Negotiating

Expect offers and counteroffers to go back and forth. Then expect a second round after the inspection, when the buyer comes back with repair requests. Keeping your emotions out of it is hard when it’s your own home, and a buyer’s agent negotiates for a living.

Contract to closing

Signing the contract is the start of a whole new process. Several deadlines run at once, and missing one can cost you rights under the contract.

• Option period and inspection. For a fee, the buyer gets a set number of days to terminate the contract for any reason. Most buyers do their inspections during this time, and repair requests usually come then too.
• Repairs. You’ll arrange any agreed repairs and keep receipts to show they were done.
• Appraisal. If the buyer has a loan, the lender orders an appraisal. If it comes in low, it becomes another point of negotiation. The buyer may ask you to lower the price, offer to cover part of the gap, or walk away, depending on the contract terms.
• Financing. The buyer’s loan has its own timeline, and delays happen.
• Survey, title, and HOA documents. Each has its own deadline in the contract.
• Earnest money. When a buyer terminates, it’s tempting to put the house right back on the market and sell to the next buyer. Be careful. If the first buyer’s earnest money is still in dispute, or the termination itself is in question, that first contract may not be fully behind you. Going under contract with someone else at that point can land you in serious legal trouble, with two buyers who both believe they have a claim to your house. Get a signed release before you move on.

Once you have a signed contract, a title company handles the closing. They hold the earnest money, run a title search, order your mortgage payoff, and prepare the closing documents. The title company is neutral, though. They make sure the closing happens correctly, but they don’t represent you or advise you on your contract. Dig out your survey and old title policy early; both can save time.

Be wary of “we buy houses” offers

Sellers on their own get a lot of calls from investors promising a fast, easy cash sale. Some are real buyers. Others are wholesalers who sign a contract with you, then try to sell that contract to someone else for a profit, with no intention of buying the house themselves.

I’ve seen how badly that can go. A seller signs with an investor, the investor records the contract in the county records, then markets the house at a steep discount trying to find someone to take over the deal. When it falls apart, the seller can be left with a clouded title and a lawsuit, unable to sell to anyone until it’s resolved.

Before you sign with any investor:

• Look for an assignment clause. If the contract lets the buyer assign it to someone else, they may be planning to sell your contract, not buy your house.
• Ask for proof of funds for the full purchase price, not just the earnest money, and look closely at what’s being called “funds.” Many investors pass off a letter of credit, money pooled from other investors, or a creative financing arrangement as cash. Those aren’t true cash deals, and they can fall through just like a loan can.
• Check your county clerk’s records to see whether anything has been recorded against your property.
• If you want an attorney’s guidance, get it before you sign, not after.

Compared to a tied-up title and legal fees, the cost of good advice up front is small.

Before you decide

Selling on your own is a part-time job for a month or two, sometimes longer, with your largest asset riding on it. Think honestly about the time you have, how comfortable you are negotiating, and what a mistake could cost compared to what you’d save. If something about your sale is unusual, such as an estate, a divorce, a lien, or a buyer asking for terms you don’t understand, talk with a real estate attorney before you sign anything.

Distance and familiarity matter too. When I sold my home in Maine this summer, I had two decades in real estate and appraisal behind me, and I had even held a broker license in Maine for a while. Still, I wasn’t comfortable handling a sale from almost 2,000 miles away, with forms and local practices I don’t work with every day. So I hired an agent with local area expertise instead. Knowing what you don’t know is part of protecting your investment.

It helps to look at the whole picture, not just the commission. What matters is what you actually walk away with after your mortgage payoff, closing costs, prorated taxes, any buyer’s agent fee you agree to, and any concessions made in negotiation. Weigh that against the risks: a price set too low or too high, weeks of extra carrying costs, a deal that falls apart, or a legal dispute. In the end, it isn’t just a math problem. It comes down to how much time, risk, and stress you’re willing to take on with your largest investment.

I’m offering this advice sincerely, to help you go in prepared. It highlights many of the behind-the-scenes issues a professional listing agent handles every day.

It’s possible to succeed without an agent, but if you decide it’s more than you want to take on, I’d be happy to help.