What to Do With Your House When You’re Relocating for Work in Texas
Reviewed by Mark Lee
The excitement of a new job offer or a promotion often comes with a sudden, looming realization: you have to move, and you have to do it fast. For many homeowners in the Lone Star State, the logistics of a career move are complicated by the largest asset they own—their home. Whether you are moving from the Energy Corridor to a new tech hub or transferring into the Texas Medical Center, the clock is ticking the moment you sign that offer letter.
When you’re facing a tight deadline, you need to know your options. Are you better off renting the property, listing it on the open market, or seeking out Cash Home Buyers to close the chapter immediately? This guide explores the financial, legal, and logistical realities of handling your Texas property during a professional relocation.
Understanding Your Employer’s Relocation Package
Before you stick a sign in the yard, you must audit your employment contract. Large Texas-based employers—from ExxonMobil to Halliburton—often provide relocation assistance, but these packages vary significantly in how they treat your existing real estate.
Lump-Sum vs. Direct Reimbursement
A "Lump Sum" package gives you a flat fee to handle all moving expenses. This is simple but risky; if your house sits on the Houston market for six months, that lump sum will quickly be evaporated by "holding costs" (mortgage, taxes, and insurance). Conversely, a "Direct Reimbursement" model might pay for specific closing costs, but only if you sell through traditional channels, which can take 60–90 days.
Guaranteed Purchase Options (GPO)
Some elite corporate packages include a Guaranteed Purchase Option. This is where a third-party relocation company offers to buy your home at a price determined by two independent appraisals if it doesn't sell within a specific window (usually 60 or 90 days). While this provides a safety net, it often requires the home to be in "pristine" condition, meaning you might still have to spend thousands on repairs before the relocation company will even consider the buyout.
The "Loss on Sale" Clause
In fluctuating markets, some high-end relocation packages include a "Loss on Sale" provision. This protects the employee if the home sells for less than what they originally paid. However, in many parts of Texas where property values have skyrocketed, this clause is rarely triggered, leaving the homeowner to navigate the market independently.
Option 1: Selling on the Open Market (The Traditional Route)
Selling via the Multiple Listing Service (MLS) is the most common path, but for a job-related move, it is often the most stressful. The traditional real estate market in Houston is seasonal and highly sensitive to interest rates.
The Problem with Timelines
The average "days on market" in Texas can range from 30 to over 70 days depending on the neighborhood. When you add another 30–45 days for a buyer’s mortgage underwriting, you are looking at a 3-to-4-month window. If your new job starts in 30 days, you are facing a "double-carry" situation: paying a mortgage in Houston while paying rent or a second mortgage in your new city.
Preparing the Home for Showings
To get top dollar on the MLS, your home needs to be "show-ready." This involves staging, professional photography, and likely several weekends of "open houses." For a relocating professional, managing this from another state is a logistical nightmare. You will need to hire a local coordinator or rely heavily on a real estate agent to manage contractors, cleaners, and lawn maintenance while the house is vacant.
Option 2: Turning Your Home into a Rental Property
Many Texans consider keeping their home as an investment. With the influx of people moving to cities like Houston, Austin, and Dallas, the rental market remains robust. However, being an "accidental landlord" isn't for everyone.
The Reality of Remote Management
Managing a rental from a different city (or state) requires a property management company. In Texas, management fees typically range from 8% to 12% of the monthly rent, plus a "leasing fee" (often one month's rent) to find a tenant. You must calculate whether the remaining cash flow covers your mortgage, property taxes (which are notably high in Texas), and a maintenance reserve.
Texas Property Tax Implications
Texas has no state income tax, but it compensates with higher-than-average property taxes. When you move out of your home and it is no longer your primary residence, you lose your Homestead Exemption. According to the Harris County Appraisal District, this can lead to a significant jump in your annual tax bill, as the 10% "cap" on assessment increases no longer applies to non-homestead properties.
Option 3: The Direct Cash Sale (The Fast-Track Option)
For professionals who value time over a marginal difference in price, selling to a real estate investment firm is often the most strategic move. This removes the uncertainty of the "buyer pool" and replaces it with a guaranteed closing date.
Eliminating the Inspection Period
Traditional buyers often use the inspection period to demand thousands of dollars in repairs or "credits." In a relocation scenario, you don't have time to negotiate with a plumber or roofer. Cash buyers typically purchase "as-is," meaning you can leave the house exactly as it is—even if it needs a new AC unit or roof—and move on to your new career.
Coordination with Your Start Date
The biggest advantage of a cash sale is the ability to pick your closing date. If your job starts on the 1st of the month, you can schedule the closing for the 28th, receive your funds, and move without the "dead period" where your equity is locked up in a pending sale.
Financial Considerations: Taxes and Capital Gains
Relocating for work involves more than just moving boxes; it involves the IRS. You need to understand how the sale of your home affects your tax liability.
The Section 121 Exclusion
Under federal law, if you have lived in your home for two of the last five years, you can exclude up to $250,000 (single) or $500,000 (married) of capital gains from the sale. If your relocation happens before you hit that two-year mark, you may still qualify for a "partial exclusion" because the move is for work-related reasons.
Deducting Moving Expenses
It is important to note that since the 2017 Tax Cuts and Jobs Act, moving expenses are no longer deductible for most taxpayers (except for active-duty military). This makes the efficiency of your home sale even more critical, as you will likely be paying for the transition with after-tax dollars. You can find more details on current IRS regulations at IRS.gov.
Choosing the Right Neighborhood Strategy in Houston
Houston is a "patchwork" city. The strategy you use for a home in The Heights might be different than the strategy for a property in Katy or Sugar Land.
High-Demand Inner Loop Properties
If your home is inside the 610 Loop, demand is generally high. However, these older homes often have "hidden" issues like aging galvanized pipes or foundation shifts. If you are relocating, these issues can kill a traditional deal during the option period.
Subdivisions and MUD Districts
In suburbs like Cypress or Pearland, many homes are in MUD (Municipal Utility District) districts. Potential buyers will look closely at the total tax rate. If your suburb is currently seeing a lot of new construction, your "used" home will have to compete with brand-new builds that offer builder incentives. In this scenario, selling fast to a cash buyer can help you avoid a long, drawn-out price war with developers.
FAQ: Relocating for Work in Texas
What is the fastest way to sell a house when relocating?
The fastest way is a direct sale to a cash buyer or real estate investor. This avoids the 30-to-60-day mortgage approval process required by traditional buyers and eliminates the need for repairs, staging, and open houses.
Should I rent my house out if I'm moving out of state?
Only if the "cap rate" makes sense. You must factor in property management fees (10%), the loss of the Texas Homestead Exemption (which increases taxes), and the cost of maintenance. For many, the stress of remote landlording isn't worth a few hundred dollars of monthly cash flow.
Can I sell my house if it needs repairs before I move?
Yes. While a traditional buyer using an FHA or VA loan may require certain repairs (like peeling paint or roof issues) to be fixed before closing, a cash buyer will take the property in its current condition, allowing you to move for your job immediately.
What happens if my house doesn't sell before my new job starts?
You will be responsible for "carrying costs." This includes the mortgage, utilities, insurance, and property taxes on the vacant home. You will also likely need to pay a local service to maintain the yard to avoid HOA fines. This is why many relocating professionals opt for a guaranteed sale.
Does Texas have a "moving tax"?
No, Texas does not have a state income tax, so there is no tax on the income you earn or the "moving assistance" provided by your employer at the state level. However, you will still owe federal capital gains tax if your profit exceeds the IRS exclusion limits.
Conclusion: Making Your Move Seamless
Relocating for a career is a milestone that should be celebrated, not overshadowed by real estate anxiety. In the Texas market, especially in a sprawling metroplex like Houston, you have the advantage of a liquid market, but you must choose the path that aligns with your start date.
If you have months to spare and a home in perfect condition, the MLS might get you a slightly higher price. But if you are like most professionals—balancing a new role, a family move, and a strict deadline—the certainty of a direct sale is often the most valuable asset you can buy.
Evaluate your relocation package, talk to your tax professional, and decide whether you want to be a landlord, a traditional seller, or a professional who closes the deal and moves on to the next chapter with cash in hand.
How Absolute Properties Helps Houston Sellers
Absolute Properties makes it easy for Houston homeowners to sell fast - even when facing challenges like financial difficulties, inherited properties, troublesome tenants, or repairs.
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