If you’re selling your home in Texas this year, you’ll definitely want to be prepared to pay closing costs. Closing costs can be confusing and really eat into your profits. So the best way to be prepared financially is to figure out these expenses on the front end so there aren’t any surprises.
Maybe you’re hoping to sell your house fast in Texas or just looking into different selling options – we’re going to break down all the details so you’ll know what to expect to pay when you close on your home sale.
The “Big Number”: Expect to Pay 8–10% of the Sale Price
The big number when selling a home in Texas is that 8-10% of your home’s sale price is what you’ll pay in closing costs and fees. So, say you’re selling your home for $300,000, 8% to 10% would come out to $24,000 to $30,000. That amount includes everything from real estate agent commissions to title insurance and other various government fees.
Although the exact number depends on a couple of factors, including your property location, the purchase price, and whether you’re working with a realtor or exploring alternative selling methods. That amount also goes up in major cities like Houston because home values and local fees are also higher.
Expense #1: Real Estate Commissions (The New 2026 Rules)
The number one biggest expense you’ll pay for in your closing costs is real estate agent commissions. In the past, sellers paid commissions, and they ranged from 5-6% of the home sale price and were split between the listing agent and the buyer’s agent. It’s slightly different now, and commissions might be negotiable slightly.
Here’s what you might pay when working with a realtor:
- Listing agent commission: 2.5-3%
- Buyer’s agent commission: 2.5-3% (though this is increasingly negotiable)
- Marketing and staging costs: $500-$3,000
These realtor fees represent the largest expense most homeowners face. A real estate agent provides marketing, showing coordination, and negotiation services, but these services come at a high cost to your net proceeds.
Expense #2: Prorated Property Taxes (The Texas “Gotcha”)
There is no state income tax in Texas; however, it has some of the highest property taxes in the nation. When you sell your home, be sure to plan on paying prorated property taxes up to the closing date. Even if your annual tax bill isn’t due yet, this still applies.
Prorated property tax bills can be a bit confusing, so here is how they work. If you were to sell in June and your annual property taxes are $6,000, you’ll likely owe $3,000 for half of the year at closing. The buyer takes over responsibility for the taxes from the closing day forward. As you would imagine, in some Texas counties, this can catch sellers off guard and is a big deal if they haven’t budgeted for this expense.
Property taxes are different based on ZIP code and local taxing authorities, so your actual costs depend heavily on where your home is located.
Expense #3: Title Insurance & Escrow Fees
Something that is not negotiable at closing is title insurance. Title insurance helps protect you and the buyer from potential ownership disputes or liens against the property being sold. In Texas, it is common for sellers to pay for the owner’s title insurance policy. The buyers usually purchase the lender’s title insurance for their mortgage company.
Here is what you can typically expect to pay for title and closing service fees and what they include:
- Owner’s title insurance policy: $800-$2,000
- Title search: $200-$400
- Escrow/closing fee: $300-$600
- Recording fees: $50-$200
- Notary fees: $50-$150
Remember, these costs vary based on things like your home’s purchase price and the title company you end up using. You can shop around for title services, which may save you a couple of hundred dollars, because prices fluctuate from provider to provider.
Expense #4: The “Hidden” Fees: Surveys & HOA Resale Certs
Here are a few other smaller expenses that can add up quickly that you don’t want to be surprised by:
- Property survey: If there are any questions about property lines or recent home improvements, you’ll need a current boundary survey. This generally costs $300-$800.
- HOA resale certificates: Your HOA may charge you for documents that provide info about HOA fees, rules, and any pending assessments. This can cost anywhere from $100 to $400.
- Government fees: This can include local recording fees and transfer document costs, expect to pay $100- 300 total.
- Attorney fees: Hiring an attorney isn’t required in Texas, but some sellers hire a real estate attorney to handle the transaction. This can cost from $500 to $1,500.
- Random Fees: Don’t be surprised by random fees that could pop up. It’s always a smart idea to have a little money set aside for anything unexpected. For example, if your home has a septic system, you might also face the cost to empty a septic tank and obtain required inspections, which can run $200-$500 depending on your local requirements.
How to Calculate Your “Net Proceeds” (The Real Math)
To figure out your true profit, you’ll need to calculate the net proceeds after all your expenses. Here is what that would look like put into action:
Home sale price – outstanding mortgage balance – closing costs – realtor commission = net proceeds
Here is an easy example, on a $350,000 home sale with a $200,000 remaining mortgage balance:
- Sale price: $350,000
- Mortgage payoff: $200,000
- Closing costs: $3,500
- Agent commissions: $21,000 (6%)
Net proceeds: $125,500
Once you actually run the numbers, it’s shocking how closing costs and commissions can eat away 25-30% of your home equity. So you’re prepared, it wouldn’t hurt to use a closing cost calculator to help you plan and avoid surprises on closing day.
Last comment about this – when you factor in appraisal costs in Texas (if required), home inspection repairs, and potential buyer credits, your actual proceeds might be even lower than initial estimates.
The “Zero Cost” Method: Selling to a Cash Buyer
So what happens if you can’t afford closing costs but you need to sell? There actually is an alternative that’s really popular among Texas homeowners, but it would mean selling directly to cash home buyers. And that’s where we come in – at Four 19 Properties, we offer a completely different approach to selling your home, without all the fees.
We are cash home buyers in Grand Prairie and throughout Texas, and usually cover all closing costs. Which means the offer you get doesn’t have things like:
- Real estate agent commissions
- Title insurance and escrow fees
- Recording fees and government costs
- Home inspection or appraisal requirements
- Repair costs or home improvements
We buy houses in Watauga and the surrounding areas with a streamlined process that eliminates traditional selling expenses. How we buy houses is simple: we evaluate your property, make a fair cash offer, and handle all the paperwork and closing costs ourselves.
About our home buying team: we understand that traditional selling isn’t right for every situation. Whether you’re facing foreclosure, dealing with an inherited property, or simply want to avoid the hassle and expense of listing with a realtor, our process offers a genuine alternative.
When you get a free cash offer, you’ll know exactly what you’ll receive at closing – no hidden fees, no last-minute surprises, and no commission deductions.
Frequently Asked Questions (Texas Costs)
Does Texas have a real estate transfer tax?
Fortunately for you, Texas doesn’t have a state-level real estate transfer tax. It doesn’t go without saying that some local municipalities may charge small transfer fees, typically under $100. In other states like California or New York, homeowners aren’t so lucky and can pay thousands in transfer taxes.
Who pays for the title policy in Texas: Buyer or Seller?
Traditionally, sellers in Texas pay for the owner’s title insurance policy, and the buyer pays for the lender’s title insurance if they plan to get a conventional mortgage. Of course, everything is negotiable, but it’s pretty standard for most transactions.
Are closing costs tax-deductible?
Yes, some closing costs may be tax-deductible or at least reduce your capital gains taxes. But tax laws are confusing and always changing, so we would highly recommend talking to a tax professional to get direct answers. This especially goes for questions about capital gains and how those work with a primary residence versus an investment property.
Conclusion
To circle back around, selling a home in Texas involves some serious closing costs. We’re talking about realtor commissions, property taxes, and title insurance, which can quickly cost you up to 8-10% of your sale price. It’s wise to look into these costs upfront so that you can be prepared and be able to decide beforehand how you’d like to sell and what selling approach works best for your situation.
For most homeowners, listing with a traditional realtor works for them, but it’s not the only option. If you want to avoid the hassle and expense of traditional selling, consider exploring alternatives like selling directly to cash buyers who handle all closing costs and offer a simpler, faster process.
Ready to explore your options? Contact Four 19 Properties today to get a free cash offer and see how much you could save by avoiding traditional closing costs entirely.