Closing costs are going to take a bite out of your sale price. And not just a little nibble. It’s 6% to 10% of what you sell for. So that $300,000 sale you’re celebrating? You could be looking at $18,000 to $30,000 in fees before you actually pocket anything.

Well, once you know what you’re paying for and why, you can at least plan for it. If you’re curious, see our company that buys homes in Texas and how we help sellers avoid extra closing costs. Some of these costs are set in stone, but others have wiggle room if you know how to negotiate.

What Are Closing Costs?

Closing costs are everything it takes to officially hand your house over to the buyer. Agent commissions are the top cost, but you’ve also got title insurance, prorated property taxes, attorney fees, and a bunch of smaller charges that add up faster than you’d think.

Some fees are just $50 or $100 here and there, but when you start stacking them all together, the total gets heavy.

Not all closing costs fall on one person. You pay some, the buyer pays some, and a few can be negotiated depending on how badly each side wants the deal to happen.

Does a Seller Pay Closing Costs in Texas?

Yes, you’re paying closing costs as a seller. Everyone does. There’s really no way to dodge them completely.

Texas doesn’t have specific laws about who covers what, but there are standard practices that most deals follow. You’ll handle certain expenses while the buyer takes care of their own list.

The exact split can shift based on your local market and how negotiations play out. When houses are flying off the market, you can usually stick to the basics and maybe even push a few costs onto the buyer.

When things are slower and you really need to close, you might end up covering extra fees just to make the sale happen.

Seller’s Closing Costs in Texas: What You’ll Pay

These are the costs that almost always land on the seller’s side of the table. Some of them are going to sting a little.

Agent Commission

For agent commission, you’re looking at around 5% to 6% of your sale price. That covers both your agent and the buyer’s agent. So if you sell your house for $400,000, that’s $20,000 to $24,000 right off the top.

It feels like a lot because it is a lot, but this is pretty standard across Texas. Some sellers try to negotiate lower rates with their agent upfront and it’s worth asking about before you sign that listing agreement.

Title Policy for the Buyer

In Texas, you’re buying the title insurance policy for your buyer. This policy protects them if someone shows up later claiming they actually own your property or if there’s some lien you didn’t know about.

The cost depends on your home’s sale price, but it usually runs anywhere from $1,000 to $4,000. It’s one of those things that feels annoying to pay for, but it’s basically required in every Texas real estate deal.

Property Taxes and Prorations

You pay property taxes for the time you actually owned the house during the year. So if you close in July, you’re covering January through July. The buyer picks up August through December.

The title company does the calculations and prorates everything down to the day. If you haven’t paid your current year’s taxes yet, they’ll take that amount out of your proceeds at closing. If you already paid, you’ll get credited back for the months the buyer owns the house.

HOA Fees and Transfer Fees

If your house is in a neighborhood with an HOA, you’re paying any dues you owe up until closing day. Plus, a lot of HOAs charge transfer fees when ownership changes hands, sometimes a few hundred bucks, sometimes more, depending on how fancy your neighborhood is.

Some HOAs also require documentation fees or want you to pay for things like pool key transfers. It varies a lot, so betterto check with your HOA before closing to see what they’ll hit you with.

Outstanding Liens and Mortgage Payoff

You can’t sell a house with debt attached to it. That means any mortgage balance you still owe gets paid off at closing. The same goes for any liens, whether it’s a second mortgage, a home equity line of credit, or that contractor lien from three years ago you forgot about.

The title company will make sure everything’s cleared before the buyer takes ownership. Whatever’s left after paying off these debts is what you actually get to keep.

Attorney and Escrow Fees

Texas doesn’t require you to use an attorney for real estate closings, but a lot of people do anyway, especially if the deal gets complicated. If you hire one, you’re paying their fees.

You’re also typically splitting escrow or settlement fees with the buyer. These cover the title company’s work, handling all the paperwork and managing the money transfer.

We’re usually talking a few hundred dollars here, not thousands, but it still adds to your total.

Buyer’s Closing Costs in Texas

Your buyer isn’t getting off easy either. They’ve got their own list of expenses to cover. Some of these costs are actually bigger than what you’re paying.

Loan Origination and Lender Fees

If your buyer is getting a mortgage (which most are), they’re paying their lender a bunch of fees to process that loan. These are origination fees, underwriting fees, and application fees. This usually costs about 1% to 2% of the loan amount

On a $300,000 mortgage, they could be paying $3,000 to $6,000 just to their lender. That’s their problem, not yours, but it’s good to know what they’re dealing with.

Appraisal and Inspection Costs

The buyer pays to have your house appraised and inspected. The appraisal makes sure the house is actually worth what they’re paying for it and their lender requires it.

Home inspections are optional, but pretty much everyone gets one. Together, these can run $500 to $1,000 or more, depending on the size of your house and how thorough the inspection is.

Buyer’s Title Insurance and Owner’s Policy

Remember how you’re buying the buyer’s title policy? Well, they can also buy an additional owner’s policy for themselves if they want extra protection. This one’s optional and way cheaper than the policy you’re buying for them. A lot of buyers skip it, but some like having that extra coverage.

Prepaid Taxes and Insurance

Your buyer has to prepay some stuff at closing, which is usually a few months of homeowners’ insurance and property taxes. Lenders want to make sure these bills get paid, so they collect money up front and put it in an escrow account.

This can be a few thousand dollars that the buyer needs on top of their down payment, but again, that’s their expense to handle.

Negotiable Closing Costs or What’s Up for Discussion

Not everything at closing is set in stone. If you play your cards right, you can shift some costs around or avoid them completely. It really depends on your market and how much leverage you have. Seller concessions mean you agree to cover some of the buyer’s closing costs to make the deal happen. If you’re unsure about what you can offer or want professional guidance, contact us to see how we can help you navigate these negotiations.

Seller Concessions

Seller concessions mean you agree to cover some of the buyer’s closing costs to make the deal happen. This may happen when the buyer loves your house but doesn’t have enough cash to cover everything at closing. To put simply, they ask you to chip in.

You might agree to pay $5,000 toward their fees just to keep the sale moving. This happens a lot in slower markets when you need to make the deal more appealing. In a hot market with multiple offers, you can probably say no and let someone else buy the house.

Home Warranty

A home warranty covers repairs on major systems and appliances for the first year after purchase. Some buyers ask for it, while some sellers offer it up front to make their house more attractive.

The cost is usually $300 to $600 for a year of coverage. It’s totally negotiable. You can offer to pay for it, ask the buyer to cover it, or split it down the middle. A lot of sellers throw it in because it’s relatively cheap and makes buyers feel better about the purchase.

Repair Credits and Allowances

After the home inspection, buyers almost always come back asking for repairs or money to fix stuff. Maybe the roof needs work or the AC is on its last leg. You can either fix things yourself before closing or give the buyer a credit at closing so they can handle it after they move in.

This is one of the biggest negotiation points in any sale. You might agree to a $2,000 credit for minor repairs or push back and say the house is sold as-is.

Transfer Tax Negotiations

Texas doesn’t have a state transfer tax. But you’ve still got county recording fees and document stamps that someone needs to pay. These are pretty small (usually under $200), but technically, they’re negotiable.

In most deals, sellers just pay them without thinking twice because they’re not worth fighting over. But if you’re in a strong position, you could ask the buyer to cover them.

What to Expect in Total

The total amount you pay depends on a bunch of factors, but there are some general ranges that apply to most Texas sales.

Average Costs as a Percentage

Most Texas sellers pay between 8% and 10% of the sale price in total closing costs when you add everything up. The biggest chunk is always agent commission at 5% to 6%, and then you’ve got another 2% to 4% covering title insurance, taxes, fees, and everything else.

On a $350,000 house, you’re looking at $28,000 to $35,000 in closing costs. That’s before you pay off your mortgage, by the way. Your actual profit is your sale price minus closing costs minus whatever you still owe on the house.

Here’s what you’re looking at for different price points:

Home Sale Price	Estimated Closing Costs (8% to 10%)	Agent Commission (6%)	Other Fees (2% to 4%)
$250,000	$20,000 – $25,000	$15,000	$5,000 – $10,000
$350,000	$28,000 – $35,000	$21,000	$7,000 – $14,000
$400,000	$32,000 – $40,000	$24,000	$8,000 – $16,000
$500,000	$40,000 – $50,000	$30,000	$10,000 – $20,000
$600,000	$48,000 – $60,000	$36,000	$12,000 – $24,000

The higher your sale price, the more you pay in raw dollars, but the percentage usually stays pretty consistent. Agent commission is always the biggest hit, and then everything else just stacks on top of that.

How to Reduce Your Seller Closing Costs

Nobody likes watching thousands of dollars disappear at closing, so let’s talk about how you can actually cut down on some of these costs. You can’t avoid them completely, but there are a few moves that can save you some cash.

Negotiate Agent Commission Rates

Agent commission is your biggest expense, so this is where you want to focus first. That standard 6% isn’t actually written in stone anywhere. It’s just what most agents expect. You can definitely negotiate a lower rate with your listing agent before you sign anything.

Some agents will drop to 5% or even 4.5% if your house is priced well and likely to sell fast. Just don’t lowball so hard that you end up with an agent who doesn’t actually work for you. You want someone motivated to sell your house, not someone who’s bitter about their cut.

Shop Around for Services

You don’t have to use the title company your agent recommends or the first attorney someone suggests. Call around and compare prices for things like title insurance, escrow services, and attorney fees.

The differences can be a few hundred bucks here and there, which adds up. Some title companies offer package deals or discounts if you’re also buying another property. It takes an extra hour of your time, but that hour could save you $500 to $1,000.

Time Your Sale Strategically

When you sell also matters. If you can close early in the year, you’ll owe less in prorated property taxes since you only owned the house for a couple of months of the tax year. If you’re closing right after you’ve paid your annual HOA dues, that’s money you’re basically giving to the buyer.

Try to time it so you’re not prepaying a bunch of fees that the new owner gets to enjoy. Also, spring and early summer are peak selling seasons in Texas. This means more buyers and more leverage to push back on costs.

Price Your Home Right from the Start

Most sellers overprice their house and it sits on the market forever. Then, they end up accepting a lower offer and paying more in holding costs. If you price it right the first time, you’ll attract serious buyers fast.

The quicker you sell, the less you pay in mortgage payments, utilities, insurance, and maintenance while waiting for a buyer. Plus, when you’ve got multiple offers coming in, you can be pickier about terms and refuse to cover extra costs.

Closing Cost Mistakes That Cost Texas Sellers Thousands

You’d be surprised how many sellers accidentally throw money away at closing just because they didn’t know better. These mistakes happen all the time. They’re totally avoidable if you know what to watch out for.

Not Reading the Closing Statement Ahead of Time

You get your closing statement at least three days before closing. Most people just skim it or don’t look at it until they’re sitting at the closing table. That’s when you spot things like charges that show up twice, property taxes calculated wrong, or random fees nobody ever mentioned.

By that point, everyone’s ready to sign and you feel pressured to just go with it rather than hold everything up. Take 20 minutes when you first get that statement and go through it line by line. If something looks weird, ask about it right away.

Paying for Repairs That Weren’t Your Responsibility

After the inspection, buyers come back with a list of everything the inspector found. Some sellers panic and agree to fix it all. But newsflash! You don’t owe them a brand new house. The doorknob that’s a little loose or the tiny crack in the driveway is not your problem.

Focus on actual issues that matter, like a roof that’s about to leak or an AC that’s dying. Everything else is just normal house stuff. You can push back without killing the deal.

Forgetting About Prepaid Property Taxes

Let’s say you paid your full year of property taxes back in January and now you’re selling in June. You should get money back for July through December since the buyer owns the house then.

But if you’re not watching, this can get missed or calculated wrong. The title company usually handles it, but double-check their math because we’re talking about potentially a few thousand bucks that should be coming back to you.

Choosing the Wrong Time to Close

Closing on the 28th of the month means you’re paying for almost 30 days of ownership that month. Close on the 3rd and you’re only paying for three days.

Same thing with when your HOA dues are due or when property tax bills come out. If you’re not thinking about timing, you could end up prepaying for a bunch of stuff the new owner gets to enjoy while you’re already gone.

Special Situations: Divorce, Inheritance, and Foreclosure Sales

Not every home sale is easy. Sometimes you’re dealing with situations that make closing costs way more complicated than usual.

Divorce Sales

Selling a house during a divorce can get really complicated with closing costs. You and your ex have to agree on who pays what and that’s not always a fun conversation.

Usually, you split everything the same way you’re splitting the money from the sale, but some divorce agreements spell out exactly who covers which fees. You might also have extra attorney costs if lawyers need to be involved in transferring the property.

The worst part is when one person wants to sell right now and the other wants to wait for a better market. Every month you wait is another mortgage payment and more money going down the drain.

Inherited Property Sales

Selling a house you inherited has its own headaches. If the property went through probate, you’ve probably already spent money on legal fees before you even list it. When there are multiple heirs, everyone splits the proceeds but also splits the closing costs. This can be very stressful.

Sometimes the house needs work because nobody’s been living in it, so you’re either paying to fix things up or taking a lower offer from someone who’ll deal with it. And yes, you might owe capital gains tax if the house is worth way more now than when the person who left it to you originally bought it.

Foreclosure and Short Sales

If you’re behind on payments and facing foreclosure, closing costs work totally differently. With a short sale, you’re selling for less than you owe, so you don’t have any money to pay closing costs anyway.

Your lender has to approve the sale and usually agrees to cover costs like agent commissions and title fees because it’s still cheaper for them than foreclosing. If the house actually goes to foreclosure, you’re not paying closing costs, but you’re losing whatever equity you had and trashing your credit for years.

Honestly, if you’re in this situation, talking to a cash buyer before things get worse can save you a lot of headaches.

Does Closing Cost Change When Selling to Cash Buyers

Selling to a cash buyer changes how much closing costs you’ll pay in a pretty major way. If you want to skip traditional fees, sell your Austin house faster with House Buying Heroes and close quickly for cash. You’re still paying some fees, but a lot of the expensive stuff just disappears.

Cash buyers don’t need mortgages, which means no appraisal requirements and way less paperwork. That speeds up the whole process and cuts out a bunch of fees right there.

Most cash buyers also buy houses as-is, so you’re not dealing with inspection negotiations or repair credits. They see the house and make an offer. If you accept, you’re basically done.

The biggest difference is the agent commission. A lot of cash buyers are investors or companies that buy directly from sellers, which means no real estate agents are involved at all. No agents means no 6% commission disappearing from your proceeds.

You’re still paying for things like title insurance and clearing any liens on the property, but you’re skipping the most expensive part of a traditional sale. Some cash buying companies cover even more of the closing costs themselves.

Frequently Asked Questions About Closing Costs in Texas

Can a seller refuse to pay closing costs in Texas?

You can’t refuse to pay your standard seller closing costs. These are agent commission, title insurance for the buyer, and your share of property taxes. Those are pretty much baked into every Texas real estate deal. But you can really refuse to pay extra costs that buyers ask for, like covering their lender fees or giving them a bunch of repair credits.

Whether that refusal kills your deal depends on how badly the buyer wants your house and what other options they have. In a strong seller’s market, you’ve got way more room to say no.

What is the average closing cost for a seller in Texas?

Most Texas sellers pay between 8% and 10% of their home’s sale price in total closing costs. The bulk of that is agent commission at around 6% and then you’ve got another 2% to 4% covering everything else: title insurance, prorated taxes, attorney fees, HOA transfers, and random administrative charges. So if you’re selling a $400,000 house, plan on $32,000 to $40,000 going toward closing costs before you see any profit.

Do sellers pay realtor fees in Texas?

Yep, sellers pay the realtor fees for both agents involved in the transaction. Your listing agent gets their cut. The buyer’s agent gets paid, too. This all comes out of your proceeds at closing.

This usually totals 5% to 6% of your sale price, though you can sometimes negotiate a lower rate with your listing agent upfront. It’s definitely the biggest single expense you’ll face as a seller.

Key Takeaways: Does a Seller Pay Closing Costs in Texas

You need to pay closing costs when selling a house in Texas and there’s no way around it. You’re looking at 8% to 10% of your sale price going toward agent commissions, title insurance, property taxes, and various fees. Agent commission is always the biggest expense at around 6%, but you can negotiate some costs and shop around for better rates on services. The exact amount you’ll pay depends on your sale price, local customs, and how well you negotiate with your buyer.

If you want to skip most of these closing costs and sell fast, reach out to House Buying Heroes today. We buy houses directly for cash, which means no agent commissions, no repair negotiations, and a much simpler closing process. If you want to skip most of these closing costs and sell fast, reach out to The House Buying Heroes Team today. We buy houses directly for cash, which means no agent commissions, no repair negotiations, and a much simpler closing process.

Give us a call at (855) 563-4376 to get a fair cash offer on your Texas home!