Selling your home in Texas can be an exciting step—whether you’re upsizing, downsizing, or relocating. But before you celebrate your closing day, it’s essential to understand the real costs involved in the sale. Many sellers are surprised by the closing fees and other expenses that come out of their profit. In this article, we’ll break down exactly what you can expect when selling a home in Texas.
What Are Closing Costs for Sellers in Texas?
Closing costs refer to the fees and expenses that both the buyer and the seller must pay when a real estate transaction is finalized. For sellers in Texas, closing costs are typically deducted from the proceeds of the sale and can add up quickly if you’re not prepared.
Common Seller Closing Fees in Texas
Here are the most common fees Texas home sellers face:
- 🔹 Real Estate Commission
Typically 5%–6% of the sale price, split between the buyer’s and seller’s agents. This is usually your largest cost. - 🔹 Title Insurance (Owner’s Policy)
Paid by the seller in most Texas contracts, this protects the buyer. Expect to pay $1,000–$3,000 depending on your home price. - 🔹 Escrow/Closing Fees
Title companies charge $400–$800 for handling funds and paperwork. - 🔹 Prorated Property Taxes
You’ll owe your share of the year’s property taxes up to the closing date. - 🔹 HOA Fees
If you live in a community with a homeowners association, expect a transfer fee (usually $100–$500) and any unpaid dues. - 🔹 Repairs or Buyer Credits
If issues come up during the inspection, you may need to pay for repairs or offer credits. - 🔹 Attorney Fees (optional)
Some sellers choose to hire an attorney for peace of mind. This could add $500–$1,500 to your costs.
📝 Buyer vs. Seller Responsibilities in Texas Real Estate Closings
| Closing Cost / Responsibility | Typically Paid By Seller | Typically Paid By Buyer |
| Real Estate Agent Commission (both sides) | ✅ Yes | ❌ No |
| Owner’s Title Insurance Policy | ✅ Yes (in most contracts) | ❌ No |
| Lender’s Title Insurance Policy | ❌ No | ✅ Yes |
| Title Search / Title Exam | ✅ Yes (sometimes split) | ✅ Yes (depends on contract) |
| Escrow/Closing Fees | ⚠️ Often Split or Negotiated | ⚠️ Often Split or Negotiated |
| Survey Fee (if required) | ❌ No (negotiable) | ✅ Yes (often required) |
| Home Warranty (if offered) | ✅ Yes (optional) | ❌ No |
| Repairs / Concessions | ✅ Yes (if agreed upon) | ❌ No |
| Appraisal Fee | ❌ No | ✅ Yes |
| Loan Origination Fees | ❌ No | ✅ Yes |
| Property Taxes (Prorated to closing) | ✅ Yes (up to closing date) | ✅ Yes (after closing date) |
| HOA Transfer Fees | ✅ Yes | ❌ No |
| Home Inspection | ❌ No | ✅ Yes |
| Recording Fees (Deed transfer) | ✅ Yes (in most cases) | ❌ No |
🧠 Notes:
Some fees are negotiable, especially in a buyer’s or seller’s market.
Always check the sales contract—terms can vary by deal, location, or negotiation.
Real estate agents or title companies usually provide a closing disclosure or net sheet to confirm who pays what.
Can You Negotiate Closing Costs in Texas?
Yes! Some closing costs are negotiable. For example:
- Agent commissions can sometimes be lowered, especially in hot markets.
- Buyer concessions may allow you to split or reduce closing costs.
- You can shop around for title and escrow services to get better rates.
How to Estimate Your Net Profit After Closing
To get a clearer picture of what you’ll walk away with:
- Start with your home’s expected sale price.
- Subtract your remaining mortgage balance.
- Deduct estimated closing costs (6–10% of the sale price).
- Factor in any repairs or buyer credits you’ve agreed to.
- The result is your net proceeds.
Your real estate agent or title company can often provide a net sheet to help you calculate this.
Tips to Reduce Seller Closing Costs
- Compare title companies for competitive escrow and title insurance fees.
- Decline unnecessary extras like home warranties unless they give you a marketing edge.
- Sell as-is or minimize concessions by prepping your home before listing.
- List during a seller’s market when buyers are more likely to waive certain fees or accept more terms.
Local Differences: Closing Costs in Major Texas Cities
Costs can vary slightly depending on where in Texas you’re selling:
| City | Typical Home Price🏠 | Seller contributions💵 | Title & Escrow Fees 📄 |
| Austin | 🔴 High | 🟢 Low | 🔴 High |
| Dallas-Fort Worth | 🟠 Moderate–High | 🟢 Low | 🟡 Moderate |
| Houston | 🟡 Moderate | 🟡 Moderate | 🟡 Moderate |
| San Antonio | 🟢 Moderate–Low | 🟡 Moderate–High | 🟢 Low |
| El Paso | 🟢 Low–Moderate | 🟡 Moderate | 🟢 Low |
| Corpus Christi | 🟡 Moderate | 🟡 Moderate | 🟡 Moderate |
| McAllen / RGV | 🟢 Low–Moderate | 🔴 High | 🟢 Low |
Final Thoughts: Planning Ahead for a Smooth Sale
Understanding the real costs of selling your home in Texas puts you in control. With proper planning, you can avoid surprises, negotiate smarter, and walk away with a better return. Whether you’re working with an agent or going the FSBO (For Sale By Owner) route, knowing your numbers is key to a successful, stress-free sale.