Selling a House That Needs Repairs in Texas

A worn-out roof, a dead AC unit or a cracked slab leaves three real choices: fix and list, list as it is, or sell for cash. Here is what lenders, the Texas resale contract and disclosure law mean for each.

Three ways to sell a house that needs work

Route	What it costs	Main risk
Repair, then list	Contractors, permits, carrying costs, commission, closing costs	Bids run over and the buyer's inspector still finds something
List as-is	Carrying costs, commission, closing costs	Fewer buyers can finance it; price talks reopen after inspections
Sell for cash	The discount in a cash price	You trade some price for speed and simplicity

If the house mostly needs paint and small fixes and you have a few months, a listing usually nets more. Cash earns its discount when repairs are large, uncertain or impossible to fund.

Repairs a buyer's lender is likely to flag

Many buyers borrow, and the lender's appraiser decides whether the house can carry the loan. Under FHA's minimum property requirements in HUD Handbook 4000.1 (section II.D.3), the appraiser must:

• report a roof with less than two years of remaining life and require a roofer's inspection;
• operate the plumbing, heating and electrical systems and call for repair or inspection if they look damaged or fail;
• report central air that is installed but not working, with the cost to cure;
• check the foundation for visible safety or structural problems;
• on homes built in 1978 or later, require repair of exterior paint that exposes the surface beneath.

Dated kitchens and worn carpet are not on that list. Other loan programs set their own rules.

Get written repair bids before you decide

Get two or three written bids for the same scope on each big item. A useful bid names the work, materials, who pulls the permit, dates and the warranty. Then add the bids, a cushion for surprises, and the mortgage, taxes, insurance and utilities you will carry during the work and the listing. If the price gain an agent expects from the repairs does not clear that total comfortably, fixing first may not pay. Unused bids still help you negotiate.

How the TREC contract handles condition and repairs

The Texas Real Estate Commission's resale contract is TREC No. 20-19. In paragraph 7D the buyer accepts the house as-is, or as-is provided the seller completes specific repairs named on the form; the form says not to insert general phrases like "subject to inspections."

Paragraph 7E says that, unless agreed in writing, neither side must pay for lender-required repairs. Without agreement the contract terminates and the buyer's earnest money is refunded, and the buyer may also terminate if those repairs exceed 5% of the sales price.

Paragraph 7F covers repairs you agree to make: finish them before closing, get required permits, use licensed tradespeople (or people in the trade where no license applies), give the buyer proof of the work and payment, and transfer any transferable warranties. If you do not finish before the closing date, the buyer may use the contract's remedies or extend closing by up to five days. Our guide to selling a house as-is in Texas covers the as-is clause in depth.

The Seller's Disclosure Notice still applies

Texas Property Code Section 5.008 requires a seller of residential property with not more than one dwelling unit to give the buyer a written condition notice. An as-is sale does not remove that duty. You answer from what you know when you sign, and marking an answer unknown is allowed. Exemptions include foreclosure and court-ordered sales, sales by an executor or other fiduciary, transfers between co-owners or to a spouse, child or other lineal relative, and divorce-decree transfers; being as-is or for cash is not one of them. If the buyer gets the notice after signing, the buyer may terminate for any reason within seven days of receiving it.

Unpermitted work and city code violations

The statutory form asks whether you know of additions or repairs made without required permits or not to code, and about notices of violations of deed restrictions or government ordinances. An enclosed garage with no permit or an open code letter belongs there. You can ask the city what it would take to permit the work or close the violation and add that to your bids, or disclose it and let buyers price it in. Our DFW as-is guide shows where Dallas and Fort Worth permit records live.

Insurance claims and foundation problems

The Texas Department of Insurance home insurance guide explains that if you owe money on the house, a repair check is made out to you and your mortgage company, which usually releases funds as work is done. Under a replacement cost policy, most companies pay in two checks, the second after they get the bill for the finished job. If you sell mid-claim, ask your adjuster and loan servicer in writing what happens to unpaid money, and tell the buyer where the claim stands.

TDI lists foundation or slab coverage among common add-ons, so read your policy before counting on a claim. For the repair, an engineer's report says what is wrong; a foundation company's bid says what one contractor would charge. Having both helps your disclosure and your negotiation.

When a cash sale makes sense, and when it does not

Listing usually wins when the work is cosmetic, the roof and systems would pass a lender's appraisal, and you can carry the house a few more months. A financed buyer will often pay more, and the difference can outweigh commission and closing costs. Cash fits when problems are the kind lenders flag, bids are high or uncertain, or you lack the money or time to manage contractors. With no lender, paragraph 7E never applies. Read who pays closing costs in Texas before comparing net numbers.

Selling a house that needs repairs to Cash Home Advisors

You can sell as-is, without making repairs. We pay all closing costs, and we can close in 7–14 days. There is no agent commission on a sale to Cash Home Advisors. Asking for a number is free and carries no obligation, and a real person calls you back. The price does not cover your loan payoff, liens, property taxes or HOA dues, which are paid from your proceeds at closing. Se habla español. See how it works, the pages for Fort Worth and Dallas, or request an offer.

A previous fire is a different file from ordinary wear. Read selling a fire-damaged house in Texas. A house that is packed with belongings, rather than structurally unfinished, is on selling a house full of belongings. The state index is the Texas hub.