A Texas senior can sell a paid-off house as-is for cash in as little as 7 days, with no repairs, no showings, and no commission. The homestead exemption and school tax ceiling stay with the home you sell, most long-owned primary residences pay no federal capital gains tax under the $250,000 to $500,000 IRS exclusion, and a fair-market cash sale generally does not create a Medicaid look-back problem the way a gift or a below-value transfer can.
This guide is maintained by Home Pros (Balint Holdings, LLC), a veteran-owned cash home buyer headquartered in San Antonio that purchases houses directly from sellers, covers standard closing costs, and never charges a commission. Every legal and tax figure below comes from the Texas Tax Code, the Texas Estates Code, the IRS, and CMS (the federal Medicaid agency), fetched on September 11, 2026. Every Home Pros figure comes from content/proof.json, the company's single source of truth for its own numbers.
How can a Texas senior sell a paid-off house without repairs or showings?
The physical work of getting a house market-ready is usually the biggest reason downsizing stalls: clearing out decades of belongings, patching drywall, replacing an aging roof or HVAC system, then keeping the house spotless for a string of showings and open houses. A cash buyer removes that step entirely by purchasing the home in its current condition, repairs, clutter, and all, so there is nothing to fix and nothing to stage before an offer can be made.
That matters more for a senior than for a typical seller, because the same tasks that are an inconvenience at 40 can be a genuine physical and financial burden at 70 or 80: climbing a ladder to fix a fascia board, coordinating contractors, or vacating the house for back-to-back showings. Home Pros gives an initial cash offer within 24 hours of a walkthrough or virtual assessment, and the seller decides the closing date, which can be as fast as 7 days or pushed out to fit a move to a smaller home, an apartment, or a family member's property.
What happens to my Texas homestead property tax exemptions when I sell?
The general homestead exemption and the additional senior exemption both belong to the property, not the person, so they do not travel with you as cash; they simply end when you no longer own and occupy that home as your primary residence. Texas raised the general school district homestead exemption from $100,000 to $140,000 under Senate Bill 4, effective for the 2025 tax year, and Senate Bill 23 added a further $60,000 exemption for homeowners who are 65 or older or disabled, for a combined $200,000 exemption against school taxes on a qualifying senior's homestead (Texas Tax Code Section 11.13).
If a senior sells and buys another Texas homestead rather than renting, the frozen school tax ceiling built up on the old home can transfer to the new one, but only as a percentage. Tax Code Section 11.26 calculates what share of the new home's school taxes would have been frozen and applies that same percentage, not the old dollar amount, so a downsize to a smaller, less expensive home can mean an even lower effective school tax bill than the percentage alone suggests.
| Texas Senior Homestead Benefit | Amount or Rule | Statute |
|---|---|---|
| General homestead exemption (school district) | $140,000 | Tax Code Section 11.13, per SB 4 (2025) |
| Additional exemption, age 65+ or disabled | $60,000 | Tax Code Section 11.13(c), per SB 23 (2025) |
| Combined school district exemption for a qualifying senior | $200,000 | Tax Code Section 11.13 |
| Property tax deferral on homestead (if not selling) | Collection postponed; 5% annual interest accrues, due at sale or transfer | Tax Code Section 33.06 |
| School tax ceiling portability to a new Texas homestead | Percentage of frozen tax transfers, not the dollar amount | Tax Code Section 11.26 |
Will I owe capital gains tax when I sell my Texas home?
Texas has no state income tax, so the only capital gains question for a Texas seller is federal. The IRS Section 121 exclusion lets a single filer exclude up to $250,000 of gain on the sale of a primary residence, and a married couple filing jointly can exclude up to $500,000, as long as the home was owned and used as a main home for at least two of the five years before the sale (IRS Topic No. 701). The two-year ownership and two-year use requirements do not need to be continuous, and they can be satisfied during different two-year windows inside that five-year period.
A senior who has owned a paid-off house for many years and lived in it as a primary residence almost always clears both tests easily, which means most or all of the gain on a downsizing sale is excluded from federal tax regardless of whether the buyer is a traditional financed buyer or a cash buyer like Home Pros. The exclusion applies to the sale itself, not to who is buying, so choosing a faster cash sale does not change the tax math.
How does selling my home affect Medicaid eligibility if I need long-term care later?
Medicaid's look-back period examines the 60 months (5 years) before a long-term care application to check whether the applicant gave away assets or sold them for less than fair market value in order to qualify (CMS, Transfer of Assets in the Medicaid Program). A sale priced at fair market value, documented with a closing statement, is treated differently than a gift, because the seller received full value in exchange, even though the asset changed from a house to cash.
The risk sits with transactions that look like disguised gifts: selling to a family member for well under market value, or giving the house away outright, inside that five-year window before applying. A cash offer from an established buyer, with a written purchase price and a recorded closing, is documentation a Medicaid caseworker can verify, which is the opposite of the undocumented, below-value transfers the look-back rule is designed to catch. This is general information, not legal or financial advice; a Texas elder law attorney can review timing and asset placement before a sale if Medicaid planning is part of the decision.
Can downsizing now help avoid probate headaches for my family later?
A Texas small estate affidavit only works for a modest estate: the value of the assets, not counting the homestead and other exempt property, must be $75,000 or less, the decedent must have died without a will, and the heirs must wait 30 days after death before filing (Texas Estates Code Chapter 205). Even then, the affidavit's power to transfer real property is narrow; it can pass a homestead to the heirs entitled to it, but it does not reach other real estate, and using it to move a homestead is generally limited to a transfer between spouses.
Selling a house while the owner is alive and able to sign for themselves avoids that limited toolkit entirely. Cash proceeds are simpler for an estate to distribute than a house, can be gifted, spent, or placed with a fiduciary during the owner's lifetime, and do not require a probate court, a small estate affidavit, or a personal representative to change hands after death. Sellers with a spouse's estate already in probate, or who want to simplify what they leave behind, can read more about selling an inherited or probate property in Texas before deciding on timing.
What does a cash sale actually look like for a downsizing senior?
The process starts with a walkthrough or a virtual assessment of the home, after which Home Pros sends a written cash offer within 24 hours. There is no obligation to accept, and sellers are encouraged to review the offer with a trusted family member, financial advisor, or attorney before signing anything. Once accepted, closing can happen in as little as 7 days, or the seller can set a later date, commonly 14 to 30 days out, to line up a move to a smaller home, a senior community, or a family member's property.
Home Pros covers standard closing costs, charges no commission, and does not require the home to be cleaned out before closing, which removes one of the more physically demanding parts of a move for an older seller. Sellers who want to see the math behind an offer before contacting anyone can start with the cash offer calculator.
| Downsizing Timeline | Cash Sale to Home Pros | Traditional Listing |
|---|---|---|
| Repairs required before an offer | None; sold as-is | Often needed for showings or after inspection |
| Showings or open houses | None | Multiple, typically over several weeks |
| Time to a signed offer | Within 24 hours of a walkthrough (content/proof.json) | Median 28 days to a signed contract, July 2026 (National Association of Realtors) |
| Time to close | As fast as 7 days, typically 14 to 30 (content/proof.json) | Additional weeks for a financed buyer's underwriting and appraisal after contract |
| Commission | None | Paid by the seller under most listing agreements |
Frequently Asked Questions
Do I have to make repairs before selling my paid-off house in Texas?
No. A cash buyer purchases the home in its current condition, so there is no repair list, no inspection renegotiation, and no contractor to schedule. A traditional listing usually needs at least cosmetic work and often a round of inspection-driven repairs before it closes, which is the part of downsizing most seniors want to avoid.
Will selling my home affect my Texas over-65 property tax exemption?
The exemption and any school tax ceiling stay with the home you sell; they do not follow you as cash. If you buy another Texas homestead, Tax Code Section 11.26 lets you transfer the percentage of your frozen school tax bill, not the dollar amount, to the new home by requesting a Tax Ceiling Certificate from your current appraisal district before or at closing.
Do I pay capital gains tax when I sell my primary home in Texas?
Texas has no state income tax, so the only capital gains question is federal. Under IRS Section 121, a single filer can exclude up to $250,000 of gain and a married couple filing jointly can exclude up to $500,000, as long as the home was owned and used as a primary residence for at least two of the five years before the sale. Most seniors selling a long-owned, paid-off home fall entirely under this exclusion.
Can selling my house hurt my Medicaid eligibility later?
Selling at fair market value generally does not trigger a Medicaid penalty, because you received full value for the asset rather than giving it away. Medicaid's look-back period examines the 60 months before a long-term care application for transfers made as gifts or sales priced below fair market value; a documented, arm's length cash sale with a closing statement is the opposite of that pattern. This is general information, not legal advice; talk to a Texas elder law attorney before selling if Medicaid planning is a concern.
How fast can a cash sale close compared to listing with an agent?
Home Pros sends an initial cash offer within 24 hours of a walkthrough and can close in as little as 7 days, with most closings landing between 14 and 30 days on a timeline the seller picks. A traditional listing took a median of 28 days just to reach a signed contract as of July 2026, before a financed buyer's closing process even begins.
What happens to my school tax ceiling if I buy a smaller home?
Under Tax Code Sections 11.26 and 11.261, the ceiling transfers as a percentage, not a fixed dollar figure. If your current home's frozen school tax bill is 25 percent of what it would be without the freeze, your new home's school taxes are calculated at that same 25 percent, even though the dollar amount changes with the new home's value.
Sources
- Texas Tax Code, Chapter 33, Section 33.06: deferred collection of taxes on the residence homestead of an elderly or disabled person, including the 5 percent annual interest accrual on deferred amounts. (WebSearch retrieval; direct fetch of statutes.capitol.texas.gov blocked by network egress this run.)
- Texas Tax Code, Chapter 11, Section 11.13 and Section 11.26: the general and age-65-or-older residence homestead exemption amounts and the school tax ceiling portability rule. (WebSearch retrieval; direct fetch of statutes.capitol.texas.gov blocked by network egress this run.)
- IRS, Topic No. 701, Sale of Your Home: the Section 121 exclusion amounts and the two-of-five-years ownership and use test. (WebSearch retrieval; direct fetch of irs.gov blocked by network egress this run.)
- CMS, Transfer of Assets in the Medicaid Program: the federal look-back period and the treatment of transfers made for less than fair market value. (WebSearch retrieval; direct fetch of cms.gov blocked by network egress this run.)
- Texas Estates Code, Chapter 205, Small Estate Affidavit: the $75,000 asset threshold, the 30-day waiting period, and the limited real-property transfer power of the affidavit. (WebSearch retrieval; direct fetch of statutes.capitol.texas.gov blocked by network egress this run.)
- National Association of Realtors, Research and Statistics: a median time on market of 28 days as of July 2026. (WebSearch retrieval; direct fetch of nar.realtor blocked by network egress this run.)
Tax exemption amounts, deferral interest rates, and probate thresholds can change by legislative session; confirm current figures with your county appraisal district or a Texas attorney before relying on the illustrative figures above. This article is educational and not financial, tax, or legal advice.
Co-founder and COO of Home Pros (Balint Holdings, LLC) and a licensed Texas real estate agent. Trevor runs the acquisitions side of the business, pricing and closing offers directly with sellers. More about Trevor →