Texas Seller Closing Costs: What You'll Actually Pay at the Table

Texas sellers typically pay 7–10% of the sale price in total closing costs — the bulk of which is real estate agent commissions. Here's every line item broken down so there are no surprises.

Real Estate Agent Commissions

The largest closing cost. Total commission is typically 5–6% of the sale price, split between the listing agent (2.5–3%) and the buyer's agent (2.5–3%). On a $350,000 home, this runs $17,500–$21,000. Since the NAR settlement in 2024, buyer's agent compensation is now negotiated separately — but most sellers still offer it to attract represented buyers.

Owner's Title Insurance

Texas convention: the seller pays the Owner's Title Insurance policy. Cost is set by the Texas Department of Insurance and is based on the sale price. On a $300,000 home: approximately $1,850. On a $500,000 home: approximately $2,800. This protects the buyer from undiscovered title defects forever.

Title Company Fees

Escrow fee, document preparation, notary, recording fees: typically $500–$1,200 depending on the title company and transaction complexity. Cash transactions are on the lower end; financed transactions with more documents run higher.

Property Taxes (Prorated)

Texas property taxes are paid in arrears — the 2024 tax bill isn't due until January 2025. If you sell mid-year, you owe the buyer a credit for the months you owned the home. On a $300K home at 2.5% tax rate, that's $7,500/year or $625/month. Selling in October means crediting about $6,250 to the buyer.

Mortgage Payoff

Your current mortgage balance plus any prepayment penalties is paid at closing from proceeds. Not technically a closing cost but it reduces your net. Request a payoff statement from your servicer before calculating net proceeds.

What Sellers Save With a Cash Buyer

Cash buyers typically pay all closing costs — including the title insurance and escrow fees normally paid by the seller. With no agent commissions and no seller-paid closing costs, a seller can net significantly more per dollar of sale price even on a lower gross offer. On a $280,000 cash offer with zero seller fees vs. a $320,000 MLS offer at 8% total costs: net proceeds are $280,000 vs. $294,400 — a $14,400 difference, not $40,000.

Frequently Asked Questions

Related reading: cash buyer vs. realtor · capital gains tax on a Texas home sale · Texas seller disclosure requirements