The True Cost to Sell a House in Texas: Seller Closing Costs and More

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  Written by Steve Nicastro

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  Edited by Jamie Ayers

Cost to sell a house in Texas | Realtor commission | How to save on fees | Seller closing costs | FAQs

The cost to sell a house in Texas typically ranges from 7.7% to 8.7% or more of a home’s sale price. 

That means it costs Texas sellers at least $23,000 in total fees to sell a home priced at $289,255 (the average Texas home price). 

The biggest costs of selling a house include realtor commission (5.59% of the sale price) and seller closing costs (1.0%), which includes owner’s title insurance and recording fees. 

Keep in mind that these figures vary widely by market, and you can save big by using an agent-matching service to sell your home. For example, Clever Real Estate has negotiated a reduced listing commission of 1.5% – far lower than the average Texas rate of 2.71%.

Here’s a complete breakdown of the costs of selling a house in the Lone Star State, including tips on how to save on your sale.

Cost to sell a house in Texas: Full breakdown

*Costs assume a sale price of $289,255.

When it comes to the costs of selling a house in Texas vs. other states, Texas measures up as average. 

You’ll see above that it costs close to $27,000 on the high end to sell a home valued at $289,255. 

Texas’ average real estate commission rate of 5.59% is slightly higher than the national average of 5.37%. 

Of course, home values vary quite a bit across the state, so your total home sale costs will also vary. It’s likely much more expensive to sell a home in Austin ($686,669 median home value) than Brownsville ($162,617), for example. Get a free CMA from a qualified top real estate agent in your area to learn what your home might sell for in today’s market.)

Here’s an example of your potential costs at various price points, including realtor fees and seller closing costs.

Factors that may impact your Texas home sale costs include: 

• Typical real estate agent commission in your area. While Texas’ state-wide average rate is 5.59%, rates may be higher or lower depending on what’s normal in your area. 
• How you find a realtor. You can potentially save thousands in Texas realtor fees by connecting with an agent through Clever Real Estate. Clever has pre-negotiated a 1.5% listing agent fee with agents in its network – much lower than the Texas average listing commission rate of 2.71%. 
• If you need to pay optional costs. Pre-listing expenses like home staging, deep cleaning, and major home repairs could add thousands more to your costs. 
• Your negotiated contract. In some Texas markets, it’s common for home buyers to request sellers to pay for part or all of their closing costs.

Here’s a closer look at your expected home sale costs.

1. Texas real estate agent commission (5.59%)

Real estate commission gets charged as a percentage of your home’s sale price and covers all of the services provided by a realtor. 

Texas home sellers pay an average of 5.59% of the home’s sale price.  That covers both the listing agent and buyer’s agent commission, as the seller is usually responsible for paying both in Texas. 

The good news is that the realtor commission is completely negotiable. And shopping around for agents can lead to some serious savings.

How to save on Texas realtor fees

Use an agent matching service

An agent matching service connects home sellers with top-rated local agents. Some companies also provide sellers with discounted rates.  

For example, Clever Real Estate has pre-negotiated a listing fee of just 1.5%, compared to the average Texas listing agent commission rate of 2.71%. 

Selling at a higher price point leads to even bigger commission savings using Clever vs. finding a realtor through other sources. 

There’s no cost or obligation to get matched with an agent, so it’s worth starting your search here. 

» MORE: Clever Real Estate Review 

List your home without a realtor

You can avoid paying Texas listing commission entirely by selling without a realtor. That’d save you 2.71% off of your home sale. 

Texas is one of the easiest states to sell a home because all the contracts provided by the Texas Real Estate Commission are freely available to the public, says Rae Hoffman, a realtor with Roots & Wings Realty Group based in Houston. 

However, there are a few major drawbacks: 

• Studies show that for sale by owner homes sell for 26% less than agent-listed homes.
• You have to handle all of the duties and tasks that a realtor normally handles, like marketing and listing your home online, handling showing requests, negotiating with buyers, and preparing important documents. 
• Your home isn’t automatically listed on the multiple listing service (MLS) unless you pay for a flat-fee MLS service. 

“People who sell by owner also typically find themselves overwhelmed with showing requests, negotiations, timelines, and paperwork,” says Hoffman. 

Realtors provide invaluable guidance and advice for Texas home sellers, says Teresa Poston, owner of Luxe Transactions, a transaction coordinator service company based in Houston. 

“The right realtor is your advocate, gets you the best price, and makes sure deadlines aren’t missed that would allow the buyer a loophole to terminate a transaction,” she says. 

The bottom line: Selling without a realtor is risky and there’s no guarantee of savings. We highly recommend consulting with a local attorney, realtor, or broker for more guidance before making a decision. 

Negotiate a lower commission

There’s no law that says realtor commission is fixed in Texas or any part of the country. You can technically try to negotiate a lower commission rate.  

For the best results, your best bet is to shop around and meet with multiple agents and get them to compete for your business.

Negotiating commission is more likely to work in a strong seller’s market where homes are selling fast and at high prices. Most agents would trade a slightly lower commission rate in exchange for a quick paycheck. 

Sellers of high-value Texas properties may have more luck negotiating rates, as agents will still earn a substantial commission, even with a lower rate.

» LEARN: How to negotiate lower realtor fees

2. Closing costs for for sellers in Texas (1.0%)

Seller closing costs in Texas typically add just under 1.0% to your home’s final sale price, according to our data. (Note: Closing costs do not include realtor commission.)

Based on the average Texas home value of $289,255, the typical home sellers pays $2,925 in closing costs. 

Here’s a list of the possible closing costs facing Texas home sellers. 

Title insurance

Owner’s title insurance protects you against any legal claims made against your home possible errors made on your deed, and the cost of legal fees when defending a claim. 

The average cost of owner’s title insurance in Texas is $1,325, costing slightly more than the national average of $1,071. 

It’s a one-time fee, usually due at closing. Actual costs depend on your location, the insurance provider, and the price of your home.

You can shop around for title insurance in Texas. Some title companies may charge extra fees for tax certificates and escrow, recording fees, and delivery expenses, according to the Texas Department of Insurance. 

Recording fees

Texas charges average recording fees of $156, slightly more than the national average of $0.

Recording fees register your property’s transfer of ownership, and the fee amount varies by county.

Title search or service fee

Your closing attorney may charge you this fee to examine the public records and transfer title ownership to the buyer. 

Typical title search costs range from $100 to $200 in Texas, depending on your type of property and location.

Attorney fees (optional) 

Texas sellers are not required to use an attorney to handle the closing. Escrow and title companies can handle all of your closing requirements, including reviewing your documents and disbursing funds. 

“Title companies are owned by lawyers and the policies are put through a stringent underwriting process,” says Poston. “Buyers and sellers can still hire legal counsel to review the contract and assist with amendments if they want to.”

An attorney can review all of your contracts and legal documents, make sure you properly fill out the Texas seller’s disclosure notice form and protect you from potential issues that may arise during your sale. 

Real estate attorneys charge an average of $220 to $250 per hour nationwide, according to Thumbtack. However, fees vary widely by location. 

» LEARN: Do I Need a Lawyer to Sell My House?

Prorated property taxes

You need to pay property taxes for the days you’ve lived in your home up until the closing date. Annual property taxes are prorated and split between the seller and buyer, and due at closing. 

Your actual cost depends on your annual tax amount, and how many days you live in your home up until the closing date. 

To figure out what you might owe, you’ll need to do the following:

• Divide your annual tax amount by 12 to get a monthly figure.
• Divide your monthly amount by 30 to get a daily figure.
• Multiply the daily figure by your days of ownership up to closing. 

Speak with your agent or attorney for more details on what you might owe in prorated taxes.

3. Other potential costs

Home preparation costs

The cost to prepare your home for sale could add thousands more to your total upfront costs. 

Home staging

It costs between $745 to $2,659 to stage a home on average nationwide, according to HomeAdvisor. However, actual costs depend mainly on your market, the size of your home and number of rooms furnished, and the amount of furniture required. 

Deep cleaning

If your home needs to be deep cleaned by a professional, expect to spend at least $300 for complete cleaning. 

Home repairs and improvements

Various items could add hundreds, if not thousands more to your budget, depending on the type of work needed.

Seller concessions

Home warranty

Texas home sellers might have to pay for a buyer’s home warranty, depending on if it’s negotiated into the sales contract. 

Home warranties are usually included in sales contracts, with an average price of $600 paid by the seller at closing, says Poston. 

However, actual costs depend on the size of the home, type of home (single-family or multi-unit), and coverage levels. 

A home warranty can be used as a negotiation tool for Texas home sellers who don’t want to make any buyer-requested repairs, according to Poston. 

“Offering a buyer a home warranty might make for an acceptable resolution. The buyer has a back-up if things go wrong within the first year,” she says. 

Buyer’s closing costs 

Closing costs are negotiable between you and the buyer. In Texas, you may or may not have to pay part or all of a buyer’s closing costs, depending on the state of the market. 

Currently, it’s not common for sellers to offer to pay a buyer’s closing costs as it’s a strong seller’s market statewide. 

“I haven’t seen a single request for seller concessions in the last two years on my listings,” says Hoffman, the Houston-based real estate agent. “Whether or not that will change as the market cools remains to be seen.” 

Homeowner’s association (HOA) dues

You may owe HOA dues or transfer fees if your Texas home is located in an HOA community. 

HOA fees vary widely in Texas and can range from $10 to $600 per month, according to CompareClosing. 

Sellers are typically responsible for covering a prorated amount of their annual membership dues at closing.

HOA transfer fee

You may also be charged an extra HOA fee to transfer homeownership records to the buyer at closing.

In Texas, HOA transfer fees are referred to as an initial resale certificate. The 87th Texas legislature voted to cap the certificate cost at $375. 

HOA transfer fees may be negotiable between you and the buyer.

“In prior years, this fee was typically paid by the seller,” says Hoffman. “For the last two years, buyers have typically been offering to pay these fees to sweeten their offers in a crazy, competitive market.”

Termite inspection fee

Two types of wood-destroying termites are common in Texas: Formosan Subterranean termites and Southeastern Drywood termites.

While home buyers are usually responsible for setting up a home inspection and a termite inspection, the buyer might ask you to cover the cost of one. 

A termite inspection typically costs about $100 but can cost up to $280, according to HomeAdvisor. 

Capital gains tax

Home sale gains in Texas may be subject to a federal long-term capital gains tax (0% to 20%).

However, the IRS offers a tax break on capital gains from the sale of your home. If you’ve owned your home for more than two of the past five years and meet other requirements, the first $250,000 – $500,000 of the profit on your home sale is tax-free. 

» LEARN: How to avoid capital gains on a home sale

Cost to sell a house in Texas calculator

Use our calculator to get a rough estimate of what you earn in your Texas home sale. 

For more accurate numbers, find a local realtor to provide you with a free seller’s net sheet: a personalized document that estimates how much you may earn in your home sale. 

A realtor can provide a clear breakdown of your expected costs, reflecting what’s normal in your market.

FAQs

Recommended Reading

The True Costs of Selling a Home: What does it really cost to sell a house in the U.S.? We discuss all of the common costs of selling a home, and ways to save thousands on your home sale.

How to Find a Realtor: Our find a realtor guide covers all of the possible ways to connect with a real estate agent – and helps you zero in on the best approach for you.

How to Sell a Texas House in 9 Steps: Our step-by-step guide breaks down the process of selling a house in the Lone Star State. We discuss how to find and choose a realtor, market and show your house to buyers, negotiate contracts, and close. 

Seller Net Sheet Guide: Learn how a net sheet can help you estimate your potential home sale proceeds, and how to get one for free.

What Companies Offer the Lowest Real Estate Commission Fees?: The standard real estate commission is 5-6% of the final sale price, which is a lot of money to pay no matter how you slice it. Many sellers don’t realize they can reduce the amount of commission they pay, sometimes by 50% or more!