The True Cost of Selling a Home in Texas
Most sellers focus on one number: sale price. But what actually lands in your bank account is a different number — and the gap between the two can be bigger than people expect.
Between commission, title fees, prorated taxes, and repairs, Texas sellers typically give up somewhere between 6% and 10% of the sale price before they ever see a dime. Here's where that money actually goes.
1. Real Estate Commission (The Biggest Line Item)
Commission is almost always the largest single cost of selling, typically making up 60–75% of your total closing costs. In Texas, total commission generally runs about 5% to 6% of the sale price, split between the listing agent and the buyer's agent.
On a $400,000 home, that's roughly $20,000–$24,000 — a significant number, but one that reflects the full scope of what an agent handles: pricing strategy, marketing, negotiation, coordinating inspections and repairs, and managing the transaction all the way to closing.
One thing worth knowing:
Since the 2024 NAR settlement, buyer's agent compensation is no longer automatically published on the MLS — it's negotiated deal-by-deal. Commission has always been negotiable in Texas, but this shift means it's discussed more explicitly upfront than it used to be.
2. Title Insurance (Owner's Policy)
In Texas, it's standard practice — not a legal requirement — for the seller to pay for the buyer's owner's title insurance policy. Texas title insurance rates are state-regulated, so pricing is consistent no matter which title company you use, and rates actually dropped about 6.2% as of March 2026, making this modestly cheaper than in recent years.
On a $400,000 home, expect the owner's policy to run somewhere in the $2,000–$2,500 range. In a strong seller's market, this cost typically just gets paid without much discussion. In a more balanced or buyer-favorable market, it's sometimes negotiated — split with the buyer or shifted onto them entirely.
3. Prorated Property Taxes
Texas property taxes are paid in arrears, which trips up a lot of first-time sellers. If you close mid-year, you haven't yet paid taxes for the portion of the year you owned the home — so at closing, you'll credit the buyer an estimated amount covering your share of that year's taxes, calculated based on how many days you owned the property.
For closings before April 1, the prior year's tax amount is typically used as the estimate. For closings later in the year, it's based on the county appraisal district's current assessed value multiplied by the prior year's rate. Either way, this shows up as a deduction from your proceeds at closing, not a separate bill you pay later — so it's easy to underestimate if you're not expecting it.
4. Repairs and Pre-Listing Prep
This is the most variable cost of the bunch, because it depends entirely on your home's condition and what buyers in your price range expect. Two categories to think about separately:
- Repairs you make before listing — fresh paint, fixing obvious deferred maintenance, addressing anything that could scare off buyers or tank an appraisal. This is optional but often pays for itself in a faster sale and stronger offers.
- Repairs negotiated after inspection — once a buyer's option period turns up issues, you may be asked to make repairs, offer a credit, or reduce the price. This is harder to predict in advance, but it's common enough that it's worth budgeting some flexibility into your expected net proceeds.
There's no fixed percentage here — a well-maintained home might need almost nothing, while an older or long-held property could need several thousand dollars in prep and negotiated repairs combined.
5. Smaller Fees That Add Up
Beyond the big four, expect a handful of smaller costs:
- Escrow/settlement fees — generally $350–$600, often split between buyer and seller
- HOA transfer fees, if applicable
- Mortgage payoff costs, including any prepayment penalty on your existing loan
- Buyer concessions, if negotiated — closing cost credits, rate buydowns, or similar
What This Looks Like in Practice
On a $400,000 home in Texas, a realistic seller cost breakdown might look like:
| Item | Approximate Cost |
|---|---|
| Commission (5–6%) | $20,000–$24,000 |
| Owner's title policy | $2,000–$2,500 |
| Prorated property taxes | Varies by closing date |
| Escrow/settlement fee | $350–$600 |
| Repairs/prep | Varies widely |
| Total (excluding repairs) | ~$22,500–$27,500 |
That's before your mortgage payoff is even factored in — which is the other number sellers sometimes forget, especially if they're early in their loan term and haven't built up as much equity as they assumed.
Why a Net Sheet Matters
This is exactly why, before you list, it's worth getting a seller net sheet — a detailed breakdown starting with your expected sale price and subtracting commission, title costs, prorated taxes, mortgage payoff, and any anticipated concessions, to show what you'd actually walk away with. Sellers who see it upfront can price, negotiate, and plan with real numbers instead of guesses.
Bottom Line
Selling a home in Texas typically costs somewhere between 6% and 10% of the sale price once everything is accounted for, with commission making up the majority of that. None of these costs are hidden — they're just often overlooked until closing day. Knowing them in advance means no surprises, and it puts you in a much stronger position to negotiate and plan around your actual net proceeds, not just your list price.
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