Selling a House As-Is in Texas: Disclosure Laws & How to Get Fair Offers

Texas homeowners sell as-is more than you might think. Foundation problems from expansive clay soils, hurricane and hail damage along the Gulf Coast, and aging housing stock across the state make as-is sales a practical reality for thousands of sellers every year.

But "as-is" is one of the most misunderstood terms in Texas real estate. It doesn't mean you can hide problems. It doesn't mean you have to accept a lowball offer. And it definitely doesn't mean you're giving your house away.

This guide explains exactly what "as-is" means under Texas law, what you're still required to disclose, and how to get fair offers instead of being exploited by a single buyer.

What "As-Is" Actually Means in Texas

Let's clear up the confusion. "As-is" has a specific legal meaning in Texas, and it's narrower than most sellers think.

What It Means

• Selling in current condition: You're not obligated to make any repairs before closing
• No repair credits: The buyer accepts the property exactly as it exists today
• Buyer assumes the risk: The buyer is responsible for evaluating condition and pricing accordingly

What It Does NOT Mean

• Not a license to hide defects: You must still disclose known problems
• Not an elimination of disclosure duties: Texas Property Code 5.008 still applies
• Not an inspection waiver: Buyers can still inspect; they just can't demand repairs

The Prudential v. Jefferson Associates Ruling

The Texas Supreme Court addressed as-is clauses directly in Prudential Insurance Co. of America v. Jefferson Associates, Ltd. The court held that as-is clauses are generally enforceable in Texas — unless the buyer can prove fraud, misrepresentation, or concealment of material facts by the seller.

In practical terms: if you're honest and disclose what you know, the as-is clause protects you. If you actively hide problems, the clause won't save you from liability.

Texas Disclosure Requirements (Property Code 5.008)

This is where most sellers get confused. Selling as-is does not eliminate your obligation to disclose known defects. Texas law is specific about what you must share with buyers.

The TREC Seller's Disclosure Notice

Under Texas Property Code Section 5.008, sellers of residential property must provide the buyer with a Seller's Disclosure Notice. This form, created by the Texas Real Estate Commission (TREC), covers:

• Structural condition: Foundation, walls, floors, ceilings
• Plumbing: Leaks, water heater, sewer/septic
• Electrical: Wiring, panels, safety hazards
• Environmental hazards: Lead paint (pre-1978), asbestos, radon, underground tanks
• Flood history: Past flooding, floodplain status, flood insurance requirements
• HOA details: Assessments, restrictions, pending litigation
• Roof condition: Leaks, age, previous repairs or claims
• HVAC systems: Heating, cooling, age and condition
• Pest infestations: Termites, wood-destroying insects (current or past)
• Mold: Known presence or previous remediation

The Standard: "Belief and Knowledge of the Seller"

Texas disclosure is based on what you actually know. You don't have to hire an inspector or investigate hidden problems. But you cannot deny knowledge of issues you're clearly aware of.

If your foundation has visible cracks you've been watching for years, you know about it. If there's hidden mold behind a wall you've never opened, you don't. The standard is honest self-reporting, not perfection.

Ongoing Obligation Through Closing

Under the Texas Deceptive Trade Practices Act (DTPA), your disclosure obligation continues through closing. If you discover a new problem between signing the disclosure and closing, you must update the buyer.

The 4-Year Liability Window

Texas sellers can be held liable for hidden known defects for up to 4 years after the sale. If a buyer discovers that you knew about foundation problems and didn't disclose them, they can sue — and the as-is clause won't protect you.

Exemptions from Texas Disclosure

Certain sales are exempt from the TREC Seller's Disclosure Notice requirement:

• Estate/probate sales: When an executor or administrator sells on behalf of a deceased owner
• Foreclosure transfers: Sales resulting from foreclosure proceedings
• Court-ordered sales: Transfers ordered by a court (divorce, bankruptcy)
• Transfers between family members: Sales between spouses, parents, children, or siblings
• Co-owner transfers: When one co-owner buys out another
• Trustee-to-beneficiary transfers: Sales within trust arrangements

Who Buys As-Is Homes in Texas?

Understanding your buyer pool is critical for setting realistic expectations and getting the best price.

House Flippers

The most active buyers for as-is properties in Texas. They buy low, renovate, and resell at retail prices. The DFW metroplex, Houston, and San Antonio have enormous flipper activity due to strong population growth and housing demand.

• Have contractor relationships and renovate efficiently at scale
• Know how to accurately estimate repair costs
• Pay cash and close in 7-14 days
• Want as-is properties because they control the renovation

Buy-and-Hold Investors

Investors purchasing for rental income rather than resale. Texas's growing metros — especially Dallas, Houston, Austin, and San Antonio — attract heavy rental investor interest due to strong job growth and population migration.

• Less concerned about cosmetics — functional is enough
• Looking for properties that cash flow as rentals
• May accept properties flippers wouldn't touch
• No state income tax makes Texas rental yields especially attractive

Wholesalers

Middlemen who put your property under contract and assign (sell) that contract to an end buyer. They profit from the assignment fee.

Caution: Wholesaler offers are typically lower because they need margin for their fee on top of the end buyer's discount. Ask directly whether the buyer is purchasing with their own funds or assigning the contract.

iBuyers (Limited)

Companies like Opendoor and Offerpad operate in Texas metros but have strict criteria. They generally only buy homes in good condition — newer construction, minimal repairs needed. If your home has significant issues, iBuyers typically won't make an offer.

Why a Marketplace of 500+ Investors Is Ideal

Different investors specialize in different property types. Some want foundation problems (they have foundation repair connections). Others want storm-damaged properties. Others want aging rentals they can stabilize.

A marketplace with hundreds of investors means more specialized buyers competing for YOUR specific property type — which drives your price higher.

How Much Less Will You Get Selling As-Is?

There's a common myth that selling as-is means giving your house away. The reality depends on condition and — most importantly — competition.

The Investor Pricing Formula

Cash buyers use a straightforward formula:

ARV - Repair Costs - Holding Costs - Profit Margin = Offer

Condition Tier Table

Real Math Comparison

Let's compare three scenarios for the same $350,000 ARV house needing $50,000 in repairs:

Scenario 1: Fix and Sell Traditionally

Scenario 2: Sell As-Is to Single Cash Buyer

Scenario 3: Sell As-Is with Competing Offers

The Key Insight

Competing as-is offers ($262,500) close the gap significantly with traditional retail ($272,000) — while saving months of time, stress, and $50,000 in out-of-pocket repair costs. The worst outcome is selling to a single cash buyer who lowballs you ($227,500). Competition narrows the gap between as-is and retail pricing significantly.

Common As-Is Situations in Texas

Texas has a unique combination of climate, geography, and housing stock that makes as-is sales especially common. Here are the issues that drive most as-is transactions in the state.

Foundation Issues

Texas's expansive clay soils are notorious for causing foundation problems. As clay absorbs moisture it expands; as it dries it shrinks. This constant cycle creates shifting and settling across DFW, Houston, San Antonio, and much of central Texas. Symptoms include cracked walls, sticking doors, uneven floors, and gaps around windows.

Repair costs: $3,000-$30,000+ depending on severity. Pier installation for severe shifting can exceed $40,000. Many homeowners sell as-is rather than invest in uncertain foundation repairs.

Storm and Hail Damage

Gulf Coast hurricanes and North Texas hailstorms cause billions in property damage every year. Insurance complications — denied claims, partial payouts, policy cancellations — leave many homeowners unable to repair storm damage. Properties with outstanding storm damage or insurance disputes are prime candidates for as-is sales.

Flood Damage

Houston flooding — especially the legacy of Hurricane Harvey — left thousands of properties with lasting water damage. Texas law requires disclosure of flood history and floodplain status. Homes with flood damage or located in flood zones face difficulty on the traditional market but sell regularly to cash investors who understand flood risk and repair.

Mold

Texas's hot, humid climate — especially along the Gulf Coast and in East Texas — promotes mold growth. Mold can develop after flooding, plumbing leaks, or simply from poor ventilation in older homes. Remediation costs range from $2,000-$30,000+ depending on scope. Many financed buyers walk away from mold, making as-is cash sales the practical option.

Outdated Systems

Older Texas homes often have galvanized plumbing (which corrodes and restricts water flow), aluminum wiring (a fire risk that many insurers won't cover), and aging HVAC systems struggling against Texas heat. Replacing these systems can cost $15,000-$40,000 combined. Selling as-is avoids this upfront investment.

Termites

Termites are active throughout East Texas and the Gulf Coast region. Past or present infestations require disclosure under the TREC Seller's Disclosure Notice. Termite damage combined with repair costs and ongoing treatment expenses makes as-is sales attractive for affected homeowners.

Step-by-Step: How to Sell As-Is in Texas

Step 1: Complete the TREC Seller's Disclosure Notice Honestly

Fill out the disclosure form to the best of your belief and knowledge. Don't guess, don't exaggerate, and don't minimize. If you know about foundation cracks, say so. If you don't know the age of the roof, say that. Honesty is your legal protection.

Step 2: Consider a Pre-Listing Inspection (Optional but Strategic)

You're not required to get an inspection, but knowing what you're disclosing gives you control. A $300-$500 inspection eliminates surprises and helps you price realistically. It also demonstrates transparency to buyers.

Step 3: Submit to a Cash Buyer Marketplace

Rather than calling one "we buy houses" company and hoping for a fair offer, submit your property to a marketplace where multiple investors compete for your deal. More competition means better pricing.

Step 4: Compare Competing Offers

Don't just look at price. Compare terms: closing timeline, inspection contingencies, earnest money, proof of funds. The highest price with the weakest terms isn't always the best offer.

Step 5: Accept and Close Through a Title Company

Texas real estate closings go through title companies (not attorneys like some states). The title company handles escrow, title search, deed transfer, and fund disbursement. Most cash closings complete in 7-14 days.

Common Mistakes to Avoid

1. Accepting the First Offer Without Comparison

The first offer is almost never the best offer. Single buyers know they're your only option and price accordingly. Thirty minutes of effort getting competing offers could mean $20,000-$40,000 more in your pocket.

2. Hiding Known Defects

The 4-year liability window under Texas law means buyers can come after you years later. The as-is clause won't protect you if you concealed known problems. Disclose honestly — it's both the legal and the smart thing to do.

3. Overpricing Based on ARV Instead of Current Condition

Your house isn't worth what it could be worth after $50,000 in repairs. It's worth what it is right now, in its current state. Pricing based on potential rather than reality drives away serious buyers and wastes your time.

4. Falling for "Guaranteed Offer" Gimmicks

Be wary of companies that "guarantee" a price sight-unseen. They typically give a high initial estimate to hook you, then significantly reduce the offer after inspection — knowing you're emotionally invested by that point. Work with buyers who provide realistic offers based on actual property evaluation.

Frequently Asked Questions

Do I have to disclose problems if I sell as-is in Texas?

Yes. Texas Property Code 5.008 requires sellers to disclose known material defects even in as-is sales. The TREC Seller's Disclosure Notice must be completed to the best of your belief and knowledge. You don't have to investigate, but you cannot hide what you know. The Texas Supreme Court has ruled that as-is clauses don't protect sellers who engage in fraud or concealment.

Can buyers still get inspections on as-is properties in Texas?

Yes. Buyers can request inspections. However, in an as-is sale, you're not obligated to make repairs based on findings. The buyer can negotiate price or walk away, but you don't have to fix anything. Most cash investors do their own inspections and factor findings into their offer.

Will banks finance as-is homes in Texas?

Usually not for homes with significant issues. FHA and conventional loans require properties to meet habitability standards. Major foundation, roof, or safety problems will cause most lenders to decline. This is why as-is properties typically sell to cash buyers.

How common are as-is sales in Texas?

Very common. Cash transactions account for roughly 28% of all Texas home sales. Many of these are as-is. Foundation issues (from clay soil), storm damage, and aging housing stock make as-is sales a regular part of the Texas real estate landscape.

Can I sell as-is if my house has foundation problems?

Yes. Foundation issues are one of the most common reasons Texas homeowners sell as-is. Cash investors regularly buy homes with foundation problems. They have relationships with foundation repair companies and can estimate costs accurately. Getting multiple offers ensures you're getting fair value despite the foundation issues.

Get Fair Offers for Your As-Is Texas Property

Selling as-is is a legitimate, common option for Texas homeowners. You don't have to invest money you don't have, manage contractors in 100-degree heat, or wait months for a traditional sale.

But as-is doesn't mean settling for a lowball offer from a single buyer exploiting your situation.

The key to a fair as-is sale is competition. Multiple investors competing for your property drives offers toward fair market value — even for homes with foundation problems, storm damage, or deferred maintenance.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Texas disclosure requirements and real estate laws may change. Consult with a Texas real estate attorney for advice specific to your situation.