Downsizing and Selling Your Texas Home
Downsizing is its own decision, separate from a job move or a family situation — usually about wanting less space, lower costs, or less upkeep. Here is what to plan for on the Texas-specific side before you sell.
Sell or buy first?
the core timing decision
Selling first avoids carrying two homes but may mean temporary housing; buying first avoids a rushed move but means qualifying for financing or paying cash before your current home sells.
Ceiling is a %
not a dollar amount
If you hold a Texas over-65 or disabled-person tax ceiling, what transfers to a new homestead is the percentage of savings, not a fixed dollar figure — and it requires a separate application.
$250K/$500K
gain exclusion available
Long-time homeowners often have significant, untaxed home-price appreciation to plan around — the standard exclusion is up to $250,000 for a single filer or $500,000 filing jointly.
Start here
- 1Decide sell-first or buy-first based on your finances and moving timeline.
- 2Start sorting belongings early — donate, gift, or sell what will not fit before moving day.
- 3If you hold a Texas over-65 or disabled tax ceiling, ask your appraisal district about transferring it.
- 4Talk to a tax professional about the home-sale gain exclusion if your home has appreciated significantly.
Sell first or buy first — the decision that shapes everything else
Selling your current home before buying the smaller one avoids paying for two homes at once and simplifies financing, but it can mean a period of temporary housing if the timing does not line up. Buying first avoids a rushed move and lets you take your time sorting belongings, but you will need to either qualify for financing while still owning your current home or have the cash to buy outright.
A written cash offer with a flexible closing date can help either way — it gives you a known number and lets you set a closing date around your next home, rather than a traditional listing timeline you do not control.
What to do with everything that will not fit
Downsizing usually means parting with more than you expect. Starting early — donating, gifting items to family, or selling higher-value pieces separately — is generally less stressful than sorting everything in the final weeks before closing. It also means you are not paying to move things you will get rid of anyway.
If the home has been owned for decades, do not assume everything inside has to be dealt with before a sale can happen — an as-is sale can let you take what matters and leave the rest, if that fits your situation better than a full cleanout.
Two Texas-specific things worth checking before you sell
If you hold an over-65 or disabled-person property tax ceiling on your current home, what carries over to a new Texas homestead is the percentage of tax savings the ceiling represents — not a fixed dollar amount — and it requires a separate application with your new county appraisal district, not something that happens automatically.
If your current home has appreciated significantly since you bought it — common for anyone who has owned in DFW for many years — ask a tax professional about the home-sale gain exclusion under IRC §121, generally up to $250,000 for a single filer or $500,000 filing jointly if you owned and lived in the home at least two of the last five years. Confirm your specific numbers before you sell; do not assume the whole gain is automatically tax-free.
Sources and further help
Considering an as-is DFW sale?
Compare a written cash offer with your other available options. There is no obligation to accept.
Explore DFW downsizing sale options