Sellers’ Guide to Texas All Cash Home Buyers
Need to sell your house fast in the Lone Star state? Perhaps you’re leaving the city of Dallas for a relaxing retirement in Galveston Island or plan to relocate to scenic California. As you eye the next destination, Texas all-cash home buyers may view your current property as a safe investment in light of the state’s growing popularity.
Texas is the fastest-growing state in the U.S., claiming six spots on the country’s list of the top 15 fastest-growing cities. In response to growing interest in the state’s mild weather, gorgeous beaches, and lack of state income tax, Texas home values have increased by $100,000 in just five years, from a median price of $230,000 in Q1 2019 to $330,950 in Q1 2024, according to data from Texas Realtors®.
Buyers with deep pockets see Texas as an attractive investment — particularly the suburban rings around houses for sale in Austin, Dallas, and Houston. Read on to find out more about all-cash home buyers in Texas and how they can facilitate a fast sale.
Disclaimer: Information in this blog post is meant to be used for educational purposes only, not as a substitute for professional tax or legal advice. If you need help navigating the intricacies of selling your home in the state of Texas or elsewhere, HomeLight always encourages you to reach out to your own independent advisor.
Inside the Texas all cash home buyer market
The National Association of Realtors reports that all-cash sales reached a decade high in January 2024, accounting for 32% of all home sales. And, according to a recent HomeLight Top Agent Insights report, 35% of agents report that cash offers are increasing.
Nick Koren, director at New Western, a national real estate investment company that buys properties in Austin, San Antonio, Dallas, Fort Worth, and Houston, echoes that the cash-buying market has changed dramatically in the Lone Star State over the past couple of years as traditional buyers pony up cash to compete. “In the past, cash buyers would typically be real estate investors or national home-buying companies,” he says. “Owner-occupants have also found sources of financing that provide cash to purchase a home.”
The state remains a hot spot for real estate investors, whether they’re looking for a property that will appreciate or generate solid cash flow. Texas represents the second-largest U.S. economy (behind only California), valued at $2.4 trillion. The state does have a higher property tax rate of 1.6%, but this drawback is somewhat offset by the state’s landlord-friendly rules and regulations.
How long does it take to sell to a cash buyer in Texas?
Koren says that without any financing contingencies, the timeline for a cash sale in Texas can be as fast or slow as the person selling the home wants it to be. When his company buys a home for cash, they can typically close in as few as 7 days.
Hayden Lyon, owner of Cowtown Home Buyers in Fort Worth, Texas, echoes Koren’s estimated timeline for cash sales. “From the time the contract is executed, cash transactions can close in as little as 5 to 7 days, depending on how quickly the title company can draw up the documents and get everything ready for closing,” he says. “The closing timeline is entirely dependent on how quickly the seller wants to sell.”
