Selling your seller-financed land note in Texas can be one of the best financial moves you make — but only if you avoid the pitfalls that trip up most sellers.
After purchasing thousands of Texas notes over 42+ years at Longhorn Money Services, we've seen the same mistakes repeat. They cost sellers thousands in lost proceeds, weeks in delays, or unnecessary tax headaches.
This detailed 2026 guide exposes the 7 most common mistakes, explains why they happen, shares real examples, and gives actionable fixes so you get the highest possible cash offer with minimal stress.
For the complete process, see our main guide to selling your land note in Texas.
Mistake #1: Accepting the First Offer Without Shopping
Many sellers take the first quote they get — often a lowball from an automated platform or inexperienced buyer.
Fix: Get 2-3 quotes. Direct buyers like us are competitive; even one comparison can add $5K-$20K. Related: direct vs broker comparison.
Mistake #2: Not Understanding (or Minimizing) the Discount
Sellers expect full balance and get upset at any discount, delaying or killing deals.
Reality: All notes sell at discount due to risk/time value. Understand factors in our discount guide — strong notes minimize it to 10-20%.
Mistake #3: Incomplete or Missing Documents
The #1 cause of delays. Sellers can't find promissory note, payment history, or recorded deed of trust.
Fix: Use our complete document checklist early. Even partial files work — we help recover missing items.
Impact: Delays closing from weeks to months (see timeline guide).
Mistake #4: Ignoring Tax Implications
Sellers forget installment sale acceleration and face surprise tax bills.
Fix: Consult CPA before accepting offer. Partial sales defer some tax — details in tax guide.
Mistake #5: Working Through a Broker Unnecessarily
Paying 3-10% commission reduces net proceeds without better pricing.
Fix: Go direct for performing notes. See why direct often pays more.
Mistake #6: Waiting Until Desperate or Payments Stop
Selling under pressure or after default drastically lowers offers.
Fix: Explore options early. Even non-performing notes sell, but performing command best pricing.
Mistake #7: Not Considering Partial Sales
Assuming all-or-nothing and missing hybrid options.
Fix: Partials often price better and preserve income — full comparison in partial vs full guide.
Real Seller Stories (Anonymized)
- Seller lost $12K accepting broker-mediated offer vs direct.
- Seller delayed 10 weeks missing one document → accepted lower offer.
- Seller paid unexpected $15K tax by not planning partial.
Your Mistake-Proof Selling Checklist
- Get multiple quotes (including direct).
- Gather documents early.
- Understand discount factors.
- Consult tax pro.
- Consider partial options.
- Choose experienced Texas buyer.
How Longhorn Helps You Avoid These Mistakes
- Transparent 24-hour quotes.
- Document recovery assistance.
- Full/partial flexibility.
- No fees or commissions.
- Tax timing discussions (not advice).
Frequently Asked Questions
What's the biggest mistake sellers make?
Not shopping offers or understanding discount — costs thousands.
Can I fix missing documents?
Yes — we help with affidavits and county searches.
Do brokers help avoid mistakes?
Sometimes, but direct buyers guide you without fees.
Is selling a non-performing note a mistake?
No — better than foreclosure hassle, though pricing lower.
How do partial sales avoid tax mistakes?
Defer gain on retained portion.
What if I already accepted a low offer?
You can usually back out before closing — get second opinion.
Are out-of-state buyers a mistake?
Often — they miss Texas-specific laws like Chapter 5.
Avoid these pitfalls and maximize your cash. Call Sandy Henderson at (210) 828-3573 or submit your note details — we'll walk you through mistake-free.