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Selling a Home in Houston: FAQ

66 answers from Compean Group about selling a home in Houston: pricing, preparing and marketing, the seller disclosure, offers, inspections, appraisals and closing. The same answers are on our Houston real estate FAQ, which covers 827 questions in all.

Other FAQ topics: Buying · Mortgages · New Construction · Owning a Home · Moving to Houston · International · Houston Market · Working With Us · AI

What's included when I list my home with Compean Group?

Every listing includes:

  • A written pricing analysis and net sheet, so you know your likely proceeds before you list.
  • Make-ready recommendations and preparation advice, including which repairs and updates are worth doing and which aren't, plus our on-staff handyman for small jobs and staging help, from a courtesy staging walk-through to a staging package through our partners.
  • Professional HDR photos with dusk editing, a video walk-through, a 3D tour of the inside and outside, a floor plan, aerial photos where they help and virtual staging when it helps.
  • Premium placement on Homes.com and Zillow, paid online and social advertising to reach buyers where they search, an email campaign to agents at Houston-area brokerages, a custom property website, flyers and Coming Soon pre-marketing within HAR's rules.
  • Showing scheduling, proactive feedback follow-up and weekly curated updates on activity and the market.
  • Negotiation and closing support, from offers and inspections through the appraisal, title work and closing day.

There's much more involved than we can list here, but we keep a few things private until we talk with you one on one, because they're part of our competitive advantage. In that conversation, we'll walk you through everything we do and how such a small team has earned 921 reviews and ratings across five sites.

How is your marketing different from other agents'?

Every agent can list a home on HAR.com, which then syndicates to the same websites, such as Zillow, Realtor.com and Homes.com. Our difference is what we add on top of that: paid partnerships for premium placement, an actual media plan rather than just photos, a 3D tour and a floor plan, expert pricing and preparation advice, and search, retargeting and pay-per-click ads that keep your home in front of buyers as they browse. Most agents don't pay for these extras, and as a boutique brokerage, we aren't held back by a corporate marketing budget. All of it comes with the five-star service behind our 921 reviews and ratings.

Who will I work with during the sale of my home?

Evan Compean, the founder, is your point person from pricing to closing day. Celena Compean helps with the preparation and readiness of your home and listing, Amanda Milligan, a licensed broker and our operations and compliance manager, keeps paperwork and deadlines on track, and the rest of our team handles scheduling, showings and marketing in the background.

How do you decide on my list price?

We study the homes buyers will compare yours to: active listings, recent price cuts and sales from the last 60 days, adjusted for size, updates and location. We also give you notes on the other comps and the things to consider about each of those sales. We provide you with 2 pricing recommendations, but ultimately YOU decide the direction, and we're here to give you guidance. We'll explain our reasoning on pricing strategy and give you a showing target for the first few so we can react quickly if buyers disagree with the price. We don't just list it and wait to see what happens.

How will I know how my listing is doing?

You'll get an email for every showing, along with the buyer agent's feedback. Every Monday we send a written activity update covering showings, online activity, buyer comments, and every Tuesday you'll get a second recap with different information, so you always know where your listing stands.

Do I need to make repairs or updates before listing?

Usually not everything. We'll point out which fixes pay for themselves, such as paint, lighting or an item an inspector would flag, and which to skip. Evan's investor and builder background helps here: we know what buyers pay more for and what they ignore. At the same time, if you'd rather sell as-is and quickly, we can help with that too, and if you want to see whether bigger upgrades are worth doing, we'll review that with you. Either way, we'll explain the what and the why.

How do you handle the buyer's inspection requests?

We wait for the buyer's written request instead of bidding against ourselves, and then negotiate from there, comparing repairs, a credit and a price change on your net sheet. First, we set the expectation with the buyer's agent that you won't be fixing everything on the inspection report; we focus on safety items and real concerns that could kill the deal. We commonly cut a buyer's requests in half or land much more favorable terms than they first asked for; on a recent as-is sale in Katy, we held the buyer to a single $1,000 credit with no repairs. We'll also be honest with you and tell you when it's in your best interest to work something out with this specific buyer.

How many inspections will a buyer do on my home?

The contract doesn't set a number, but inspections happen during the buyer's option period. Most buyers schedule a general home inspection and a termite inspection, and some add specialists such as a foundation evaluation, sewer scope, roof, pool or invasive stucco inspection when the home calls for it. A stucco inspection drills small holes in the walls, so it needs your written approval first. We coordinate the times with you so each visit is planned ahead.

Where does the contract cover a buyer's inspections?

Paragraph 7A, Access, Inspections and Utilities, of the TREC One to Four Family Residential Contract (Resale), form 20-19, lets the buyer use inspectors of their choosing who are licensed by TREC or otherwise permitted by law, and requires you to give reasonable access and keep the utilities on. A hydrostatic plumbing test needs your separate written authorization, usually on TREC's Addendum for Authorizing Hydrostatic Testing. An invasive stucco inspection, which drills small holes in the walls to check for moisture, also needs your written approval. The option period in paragraph 5 is the window the buyer uses for these inspections.

Do I have to allow the buyer's inspections?

Yes. Once you're under contract, the standard TREC resale contract requires you to give the buyer and their inspectors reasonable access and keep the utilities on. Invasive tests are different: a hydrostatic plumbing test requires your written authorization, and we only allow drilling into stucco with your written OK. If you have questions about your obligations under your contract, a real estate attorney can advise you.

What if the buyer's appraisal comes in low?

The best approach is a proactive one: we give the appraiser comparable sales and a list of the home's updates before the appraisal is done. If the value still comes in short, there are three main options. First, we can ask the buyer's lender for a reconsideration of value, sending the appraiser additional comparable sales and any corrections that support the price. Second, we can negotiate with the buyer to pay the difference in cash, or a portion of it. Third, you can decline their request to lower the price, keeping in mind that, depending on the contract, the buyer may be able to walk away. We'll review all of the options with you and recommend the one that fits your situation.

Can you sell my Houston home if I live out of state or overseas?

Yes. We regularly sell for owners in other states and countries. We have the title company review any power of attorney before the first offer, handle access and vendors locally, and arrange remote or mail-away signing for closing. We can often also set up online notarization from almost anywhere in the world, as long as you have a webcam and an internet connection.

What does it cost to sell with Compean Group?

Our fee is set out in the listing agreement before you sign, and we walk through every line with you, along with an estimated net sheet showing title, tax proration and other closing costs. Photography, the 3D tour, listing advertising and the showing service are part of our service.

Does the brokerage I choose really change my sale price?

Yes. Pricing, preparation, marketing reach and negotiation each move your bottom line. On a recent Heights sale, every comparable sale was below our contract price, but the home still appraised at full price because we showed the appraiser the demand the home had, its upgrades and the advantages it had over the other comps. We've done the same for homes all over town.

What should I look for when choosing a listing agent in Houston?

Ask for a written pricing analysis with active and sold comparables, a marketing plan that says what's paid for, how often you'll get updates and who you'll actually talk to. Then read recent reviews on Google, Zillow and HAR, not only the testimonials an agent picks, and compare reviews per agent, not just the total. That's where we stand out: every listing gets a written pricing analysis with notes on each comp, a paid marketing plan with premium placement on Homes.com and Zillow and online ads, feedback updates plus written recaps every Monday and Tuesday, and Evan as your point person from pricing to closing day. As a small team with 921 reviews and ratings across five sites, we have far more reviews per agent than most large operations, with more than 1,000 homes sold behind our advice.

Why choose a small, owner-led team over a big brokerage?

You get the owner's experience on your sale. Evan Compean leads every listing and stays your point person, and as the brokerage owner he can spend what your listing needs on marketing without a corporate spending cap.

What happens if my home is priced wrong?

Homes priced too high sit, collect price cuts and lose leverage with buyers. We price from current competition and sales from the last 60 days, agree on a showing target for the first week or two, and adjust quickly if the market disagrees. We also review the market's trajectory and your listing's activity to make sure we're getting the results we need, and if we aren't, we'll discuss it with you and give you our suggestions and expectations.

Why do sellers choose Compean Group?

Results and experience: 1,000+ homes sold, 140+ transactions in the last 12 months, a 5.0 rating across 216 Google reviews and an investor's eye for what buyers will pay more for. You also get honest advice on every request, with your options and their net cost laid out side by side. All of this is done with a two-person production team, which is what sets us apart from large teams that can have dozens of agents or more.

Should I give the buyer a credit or make the repairs myself?

For bigger problems, we usually recommend a credit. A credit moves the risk of surprise costs to the buyer after closing, keeps your closing date on track and avoids disputes over workmanship. Small, clear-cut fixes can be cheaper to just repair. We'll review the options with you, because each negotiation is a little different and not every repair or credit approach applies the same way.

Is a price reduction better than a repair credit?

Usually not for repairs. On one recent sale, a price cut would have lowered the buyer's payment by only about $50 a month, while the repairs would have cost them several thousand dollars out of pocket right after closing, so a credit solved the real problem. We compare both on your net sheet before you decide.

Can I sell my Houston home as-is?

Yes, but "as-is" doesn't stop inspections. Texas buyers typically still inspect during the option period and can ask for credits or walk away. On our recent as-is sales, follow-up requests ranged from $1,000 to $5,000. What we do is set expectations up front: when you're selling as-is, we make sure buyers know it, because there's no use wasting time with a buyer who expects to negotiate repairs. We review the approaches with you before you list.

What is the option period?

It's a short window set in the contract, often 5 to 10 days, when the buyer can terminate for any reason after paying an option fee. Option fees usually range from about $100 to $1,000, depending on the sales price, the length of the option period, buyer demand and the neighborhood. Most inspection negotiations happen during this window, so quick answers matter.

Can I make the buyer skip the option period?

Yes, you can ask for an offer without an option period, but the buyer can decline. In today's market that's rare: buyers want inspections, and if we block them, they're likely to move on to a different home.

What is the option fee?

It's what the buyer pays for the right to terminate during the option period. If the sale closes, it's usually credited toward the price; if the buyer terminates, the seller keeps it.

Do I have to tell future buyers about a previous buyer's inspection?

Generally, yes. The Texas seller's disclosure asks about written inspection reports you've received in the past four years, and you must disclose defects you know about. That's why we walk through findings with you carefully before deciding how to respond. Disclosing reports also helps protect you, because you're not hiding anything, and a buyer can't easily claim you knowingly withheld information. If you have a specific concern, consult a real estate attorney for legal advice about your situation.

Can I challenge a low appraisal?

Yes. The buyer's lender can submit a reconsideration of value with better comparable sales, and the review usually takes a few business days. It works best when the appraiser missed closer, newer or more similar sales.

When should I cancel my utilities when selling?

Schedule shutoff for the day after closing and funding, not before. Inspectors, the appraiser and the buyer's final walkthrough need power, water and gas on, and gas appliances can't be inspected without gas service.

How do I sell a house I inherited?

First confirm who has legal authority to sell, which may mean probate or an heirship process, and talk with a probate attorney. Order the title commitment early, because estate title work often takes longer than a typical sale. Our guide to selling a probate or inherited home explains each path and shares five case studies.

How long does it take to sell a house in Houston right now?

It depends on price, condition and area. In HAR's September 2026 report the Houston area had about 5.5 months of inventory, and the average home that sold spent 58 days on the market. Those two figures measure different things: months of inventory is how long the homes for sale now would take to sell at the current pace (all active listings divided by a month's sales; about six months is the usual line between a balanced market and a buyer's market), while days on market counts only the homes that sold, from listing to sale, so a listing that sits unsold is in the inventory figure but not in the days figure. We work on a plan with you to get yours sold much sooner. Once you're under contract, a financed sale typically closes in about 25 to 40 days.

My home isn't selling. Should I lower the price?

First find out what buyers are reacting to: price, condition or presentation. We review showing feedback and online activity with you before recommending a price change, and sometimes fresh photos or a small fix does more than a cut. Other options can include relisting the home so it appears as a fresh listing, changing the marketing, or making certain fixes.

How do you handle multiple offers?

We compare net proceeds, financing strength, option period, closing date and any leaseback, and we may counter more than one buyer. On a recent Webster condo sale, we countered both offers before choosing.

Can I stay in my home after closing?

Yes, with a short-term leaseback agreement after closing. Some buyers even offer a free leaseback to win in multiple offers.

A cash investor made an offer on my house. Should I take it?

Compare it with what the open market would net after repairs and fees. Ask for proof of funds, the closing timeline and who pays closing costs. On homes needing work, we've seen investor offers vary widely for the same property.

What if the buyer's inspection finds foundation issues?

Get a foundation company's or engineer's opinion and pull your records. On an East End sale, the seller's 2020 foundation-leveling records helped answer a $13,000 repair request.

Should I get a stucco inspection before listing?

We discuss this with you depending on your home. An invasive stucco inspection usually costs $1,000 to $1,500. Once an inspection is done, its findings have to be disclosed to buyers, as does any defect you already know about, so if problems turn up, repairing them before listing is usually the better path.

Can listing photos and the 3D tour happen on the same day?

They can, but we usually schedule them separately so the home is ready and you aren't overwhelmed. Make sure the power is on for both.

How do the title examination and title commitment work when I sell?

Once you're under contract, the title company runs a title examination, searching the public records for your property's chain of ownership and any liens, judgments, easements and restrictions, and then issues the title commitment. Anything that has to be cleared before closing, such as your mortgage payoff, an old lien or a missing release, shows up as a requirement, so the sooner it surfaces the more time there is to resolve it. The title company also checks the commitment against the survey, and the buyer can object in writing to items in either by the contract's deadline.

What do the four schedules in a title commitment mean for a seller?

Each schedule tells you something different:

  • Schedule A: names you as the current owner of record, along with the buyer and lender to be insured, the policy amounts and the legal description, so the names and description should match your deed.
  • Schedule B: lists the exceptions the buyer's policy won't cover, such as recorded easements, deed restrictions and building lines.
  • Schedule C: lists what must be done before closing, which for sellers usually means paying off the mortgage and any other liens, and signing or recording releases and other documents.
  • Schedule D: discloses the title insurance company and title agent, who owns them and how the title premium is divided.
How long is the closing appointment for sellers?

Seller paperwork usually takes 15 to 30 minutes, much less than the hour most buyers spend. If you can't attend, the title company can arrange a mail-away or remote signing.

When do I get my money after closing?

Once the sale funds, the title company releases your proceeds, usually by wire the same day or the next business day. Funding happens after the buyer has signed and both the buyer's lender and the buyer have sent their funds to the title company. Wires only move during business hours, and most banks have cutoff times for sending them, so a late-afternoon closing can push your proceeds to the next business day.

Should I be concerned about signing before the buyer does?

Usually not. Title companies in Texas are licensed and regulated by the Texas Department of Insurance, and they can't disburse funds, issue the title policy or record the deed until all of the money has arrived and every required document has been signed. If you have a specific concern, ask the title company or a real estate attorney.

How does a stucco inspection work?

It's an invasive inspection, so we need the seller's authorization before it can be scheduled. The inspector drills small holes in the stucco, usually around windows, doors, rooflines and other spots where water tends to get in, takes moisture readings of the substrate behind it, and seals each hole with an appropriate sealant. The readings are assessed to determine whether moisture has gotten behind the stucco, and the inspector checks that the wood substrate is firm; soft wood points to moisture damage. It's common in Houston for owners to fall behind on stucco maintenance, so the test helps prevent surprises and gives us something concrete to negotiate repairs with the seller during your option period.

How many inspections can I do when buying a home in Texas?

As many as you need during your option period; the contract doesn't set a number. Most buyers get a general home inspection and a termite inspection, and add specialists such as a foundation evaluation, sewer scope, roof, pool, septic or invasive stucco inspection when the home calls for it. A stucco inspection drills small holes in the walls, so it needs the seller's written approval first. We help you decide which ones are worth it for the specific home.

Where does the Texas contract cover my inspections?

Paragraph 7A, Access, Inspections and Utilities, of the TREC One to Four Family Residential Contract (Resale), form 20-19, lets you choose your own inspectors who are licensed by TREC or otherwise permitted by law, and requires the seller to give reasonable access and keep the utilities on. The option period in paragraph 5 gives you time to inspect and the unrestricted right to terminate before it ends, and a hydrostatic plumbing test needs the seller's separate written authorization, as does an invasive stucco inspection, which drills small holes in the walls.

Does the seller have to let me do inspections?

Yes. Under the contract, the seller must give you and your inspectors reasonable access and keep the utilities on. Invasive tests are the exception: a hydrostatic plumbing test needs the seller's written authorization, and drilling into stucco needs the seller's written OK, so we request it early in your option period.

What should I gather before we meet to sell my home?

Your mortgage payoff estimate, HOA contact details and a list of the updates you've made to the home, such as a new roof, HVAC system, windows, flooring or remodeling, with approximate dates. That list helps us price the home and answer buyers' questions.

Why should I choose Compean Group when other companies have more reviews?

Because the total number of reviews isn't the whole story. Many of the companies with more reviews are large teams or brokerages with dozens or even hundreds of agents, so their reviews are spread across far more people, and the agent who would actually handle your sale or purchase often has only a handful of their own. Compean Group is a small team with 921 reviews and ratings across Google, Zillow, Yelp, RateMyAgent and HAR, which works out to far more reviews per agent than most large operations. When you compare, ask how many reviews the agent you'd actually work with has.

Selling it yourself? Read our For Sale By Owner guide.

Can I try selling my house myself first and list it later?

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.

How should I price my home if I'm selling it myself?

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.

Do I have to pay the buyer's agent if I sell by owner?

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.

If I sell by owner, does the buyer's agent represent me too?

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.

How can I tell a real buyer from a wholesaler?

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.

What should I fix before selling my house myself?

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. The actual advice for your home will vary on the condition, market, and pricing. Skip big remodels unless recent sales show buyers pay more for them.

What should I know about showing my home myself?

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. Ask for questions in writing and avoid phone calls or conversations that might give away too much leverage.

Can I list my house on HAR or the MLS without an agent?

Not on your own. Only licensed real estate brokerages 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.

Do I still need TREC forms and a Seller's Disclosure Notice if I sell by owner?

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.

What closing costs will I pay as the seller?

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.

What does a Texas seller have to disclose?

Sellers of most single-family homes must give the buyer a written Seller's Disclosure Notice before the contract's effective date. TREC's form 55-1 replaced form OP-H on May 28, 2026. The form asks what you know about:

  • the home's condition and systems;
  • past repairs and insurance claims;
  • floodplain status, flooding and flood claims;
  • the HOA and any special district;
  • lead-based paint;
  • inspection reports you've received.

Answer from what you actually know, mark "unknown" instead of guessing, and keep copies of any reports. Our rule of thumb: when in doubt, disclose. A known problem that's disclosed becomes part of the price conversation, while one that's hidden can turn into a claim after closing. See our guide to the Texas Seller's Disclosure Notice.

Which sellers don't have to give a Seller's Disclosure Notice?

Texas Property Code section 5.008 exempts several kinds of transfers:

  • sales under a court order or after a foreclosure, and sales by a lender that took the home back;
  • sales by a trustee in bankruptcy;
  • sales by a fiduciary administering an estate, guardianship or trust, which includes most executors and administrators;
  • transfers from one co-owner to another, to a spouse or to children or grandchildren, and between spouses in a divorce;
  • transfers to or from a government entity;
  • the first sale of a new home no one has lived in.

Exempt sellers of pre-1978 homes must still give the federal lead-paint disclosure. Many exempt sellers give a disclosure anyway, because buyers and their lenders expect one. See our probate and inherited homes guide.

How are property taxes split when I sell partway through the year?

Texas property tax bills go out in October and are due by January 31 for the year that's ending, so in most sales the current year's tax hasn't been paid yet. At closing, the title company charges you for January 1 through the closing date and credits that amount to the buyer, who pays the full bill later. The year's bill isn't known yet, so the split usually uses the latest available figures. The TREC contract has the parties adjust once the real bill comes out, unless they agree otherwise. MUD taxes and HOA dues are split the same way. If you close after bills are issued, the title company may pay the bill at closing instead.

Who pays for the owner's title policy in a Houston sale?

The contract decides. The TREC resale contract has a box for who pays for the owner's title policy, and it's negotiable. In the Houston area, the seller most often pays for the owner's policy, and the buyer pays for the lender's policy. It's one of the bigger seller expenses, but the premium is regulated by the Texas Department of Insurance, so it's the same at every title company for a given price. Escrow and other fees can differ, and the contract splits the escrow fee equally unless you agree otherwise. The owner's policy premium rises with the sale price, so it shows up as a line on your net sheet.

Do I owe tax on the profit when I sell my home?

Often not. Federal law lets you exclude up to $250,000 of gain, or $500,000 for most married couples filing jointly, when you sell your main home. To qualify, you must have owned it and lived in it for at least two of the five years before the sale, and not used the exclusion in the past two years. Gain above the limit, or on a home that doesn't qualify, may be taxable. Texas has no state income tax. If the home was ever used as an investment property, part of the gain may not qualify. Keep records of improvements, because they raise your cost basis. A CPA can run your own numbers.

What happens to my homestead exemption after I sell?

It stays on the home for the rest of that tax year, so the year's bill, and the tax split at closing, still reflect it. From January 1, the new owner applies for their own. You can file on your next home once you own it and live there. You can have only one homestead at a time, and buyers who close after January 1 can claim it for the rest of that year, prorated. If you keep the old home and move out, tell the appraisal district it no longer qualifies.

How does a 1031 exchange work when I sell an investment property?

A 1031 exchange lets you defer federal tax on the gain from selling investment or business real estate by buying other investment real estate. The rules are strict:

  • A qualified intermediary must hold the sale proceeds. If the money reaches you, the exchange fails.
  • You must name replacement property in writing within 45 days after closing and close on it within 180 days.
  • To defer all the tax, the replacement generally has to cost at least as much, with all the net proceeds reinvested.

Your own home doesn't qualify. Plan the exchange before you list, because the intermediary has to be in place before closing. A CPA or tax attorney can tell you how the rules apply to you.

What happens to the tenants and deposits when I buy an occupied home?

The existing lease generally stays in place after the sale. You become the landlord on the same terms until it ends, so you can't move in early or change the rent mid-lease unless the lease allows it. In Texas, the new owner becomes responsible for returning the tenants' security deposits starting from the date the new owner takes title, whether or not the seller handed the deposits over. Before you close:

  • add TREC's residential leases addendum to the contract;
  • get copies of every lease, the rent roll and the deposit amounts;
  • make sure the deposits and any prepaid rent are credited to you on the closing statement;
  • give the tenants a signed statement that you've taken over the deposits, which releases the seller.

A real estate attorney can review a lease you're unsure about.

Do I need a permit to run a short-term rental in Houston?

Yes, inside Houston city limits. Since January 1, 2026, the City of Houston has required a certificate of registration for each unit rented for fewer than 30 consecutive nights. That includes a whole home or a single room. Registration renews every year, with a $275 fee per unit plus an administrative fee. You also need proof that you've registered for and pay hotel occupancy tax, and a local contact who answers complaints. The city can fine violations and revoke a registration. Suburban cities, counties and many HOAs and deed restrictions have their own rules, and some ban short-term rentals outright. Check them before you buy a home you plan to rent this way.

Call or text (832) 777-3904, email admin@thecompeangroup.com or send us a message. We work with clients in English and Spanish.

Updated November 5, 2026.