Key takeaways
- Start with why you’re moving and where you’re going next. They shape your price, timing, and terms.
- Estimate your net proceeds: likely sale price minus your loan payoff and selling costs.
- Many homeowners can exclude up to $250,000 of gain, or $500,000 for married couples filing jointly, from federal income tax if they meet IRS tests. Confirm with a tax professional.
- If you’re also buying, decide whether to sell first, buy first, or coordinate both, and talk with a lender early.
- No one can promise a sale price or timeline. A plan built on local data puts you in the best position.
Clarify why you’re selling
Common reasons include a growing or shrinking household, a new job or relocation, a different school district, downsizing, or a change in finances. Your reason affects your priorities:
- Relocating on a deadline? A smooth, predictable closing may matter more than holding out for top dollar.
- No set deadline? You may have room to prepare thoroughly and list at the best time for you.
- Upsizing or downsizing locally? You’ll need to coordinate your sale with your next purchase.
Are you ready to sell?
For your own planning. Checking items doesn’t send anything to Clever Realtors.
Estimate your net proceeds
Your proceeds are what you receive after the sale closes and everything owed is paid. A simple framework:
| Expected sale price | Based on comparable sales and condition, not online estimates alone |
|---|---|
| − Mortgage payoff | Includes interest through closing; request a payoff statement from your servicer |
| − Listing commission | Set in your listing agreement and negotiable |
| − Buyer-agent contribution | Only if you agree to contribute |
| − Title and escrow charges | As your contract assigns, often including the owner’s title policy |
| − Prorated property taxes and HOA | Your share of the year through the closing date |
| − Repairs or concessions | Whatever you agree to with the buyer |
| = Estimated net proceeds | An estimate. Your actual figures come from the title company at closing. |
Clever Realtors’ listing commission is 1.5% for listing-side services. Any buyer-agent compensation you agree to and other closing costs are separate. Ask us for a personalized net sheet when you talk through pricing.
Taxes when you sell your home
Under federal tax law, if you meet the IRS ownership and use tests (generally, owning the home and living in it as your main home for at least two of the five years before the sale), you may be able to exclude up to $250,000 of gain, or $500,000 for married couples filing jointly who meet the requirements. Partial exclusions and exceptions exist. IRS Publication 523 explains the details.
Texas has no state income tax, but your property tax situation changes when you sell. Taxes are prorated at closing, and any homestead exemption applies to the home you live in. Talk with a tax professional about your specific situation.
Should you buy first or sell first?
| Approach | Pros | Trade-offs |
|---|---|---|
| Sell first | You know your exact proceeds; a stronger position when you buy | You may need temporary housing or a short leaseback |
| Buy first | Move once, on your schedule | You may carry two payments; financing depends on your lender |
| Contingent purchase | Your purchase depends on your sale closing | Can be less attractive to sellers in competitive markets |
| Coordinated closings | Sell and buy close together | Tight timing; delays on one side can affect the other |
A temporary lease can let you stay in your home briefly after closing, or let your buyer move in early. Any lease should be in writing. Talk with a lender early about how your current home affects your next loan. See our home buying guide for the purchase side.
Choosing your timing
Seasonal patterns exist, but your circumstances usually matter more than the calendar. Consider:
- Your deadline: a job start date, school year, or lease end.
- Preparation time: repairs, cleaning, and photos take time. See preparing your home.
- Local competition: how many similar homes are for sale near you right now.
- Your next home: availability and financing on the buying side.
Alternatives to selling
Selling isn’t the only option. Some homeowners keep the home and rent it out, refinance, or renovate instead. Each has costs and responsibilities. If renting is on your mind, learn more on our rent page, and talk with a tax professional about how it affects the sale exclusion described above.
Watch: Deciding to sell your property
Frequently asked questions
How do I know what my house is worth?
Online estimates are a starting point, but they don’t see your home’s condition or updates. A comparative market analysis from a local agent uses recent sales of similar homes nearby. See pricing your home.
Can I sell if I owe more than my home is worth?
It can be more complicated. You may need to bring money to closing or work with your lender on alternatives. Talk with your lender and a professional advisor early.
How long does it take to sell a house?
It depends on price, condition, location, and the market. Preparation can take weeks, time on the market varies, and closing follows the contract’s timeline. No one can guarantee a timeline.
Do I have to pay taxes on the sale?
Many homeowners qualify for the federal exclusion of up to $250,000 of gain ($500,000 for eligible married couples filing jointly). Rules and exceptions apply. Check IRS Publication 523 and a tax professional.
What disclosures will I need to make?
Most Texas sellers of single-family homes must give buyers a Seller’s Disclosure Notice. Homes built before 1978 also require a lead-based paint disclosure. We’ll tell you which apply to your property.
Sources and further reading
- IRS Publication 523 — Selling Your Home
- TREC — Seller’s Disclosure Notice
- EPA — Lead-based paint real estate disclosure
- Texas Comptroller — Property tax exemptions
This article is general information, not legal, tax, or financial advice. Your proceeds and tax situation depend on your circumstances and contract. Consult a tax professional or attorney for advice.
