Texas sellers can expect to pay around 3.43% of their home's final sale price in closing costs. For a $315,815 home — the median home value in Texas — you'd pay about $10,844.
For most sellers, closing costs are taken out of their sale proceeds. If you don't earn enough from the sale to cover your closing costs, you might have to pay for these fees out of pocket — but this rarely happens.
Realtor commission fees are usually the most expensive part of selling a home in Texas. Luckily, sellers can save thousands by using a low commission agent-matching service like Clever Real Estate.
Clever pre-negotiates low listing fees of just 1.5% with top full-service Texas realtors so you can keep more money in your pocket after selling your home.
Keep reading to learn what you're responsible for as a seller and how much closing costs are in Texas. Need estimates for your sale? You'll also find our Texas seller closing costs calculator!
How much are seller closing costs in Texas?
Seller closing costs include all the fees due when you finalize the sale of your home in Texas. Most of these expenses are required in order to transfer legal ownership of the property to your buyer.
Texas seller closing costs
No transfer tax in Texas
*Based on a sale price of $315,815, the typical home value in Texas (Zillow August 31, 2022)
In Texas, you'll pay about 3.43% of your home's final sale price in closing costs, not including realtor fees.
Keep in mind that this number is just an estimate. Your closing costs can vary depending on your location, timeline, buyer incentives, and several additional factors. Fortunately, you can negotiate whether you or your buyer will cover certain fees.
For best results, work with an agent who has plenty of negotiation experience. Clever can help by matching you with a top local realtor who will negotiate on your behalf and help you make the most of your sale.
» MORE: See how Clever can match you with a local expert
Buyers and sellers both have to pay unique closing costs to finalize a home sale. In Texas, it's common for sellers to pay title and closing service fees, owner's title insurance policy, and recording fees.
Title fees: 0.62%
Title fees cover the costs of your title search and title transfer.
When you sell your home, you'll need to transfer legal ownership of the property to your buyer. Before this can happen, your settlement agent will perform a title search to make sure there aren't liens or claims against your property.
Buyers and sellers in Texas usually pay for their own closing agent or title company, but not always. Ask your agent if you're not sure which fees you'll need to pay.
Owner's title insurance: 0.54%
Owner's title insurance will protect your buyer if there's a problem with the property title. Issues with your property title can range from simple clerical errors to ownership disputes over the home. A title insurance policy will cover any necessary legal fees or possibly reimburse the buyer for the value of a home in extreme cases.
In Texas, title insurance usually costs around 0.54% of your home's final sale price — or $1,715 for a $315,815 home. Most title companies in Texas use a tiered pricing system that determines the cost of a policy based on the value of your property.
Although it's common for the buyer to pay for their own title insurance policy in Texas, sellers may offer to cover this closing cost if they need to incentivize a buyer.
» MORE: What is title insurance, and why do you need it?
Texas transfer tax: No transfer tax in Texas
Unlike most states, Texas doesn't charge any real estate transfer fees. However, this is subject to change at any time, so sellers should be aware of any new legislation before finalizing their sale.
» FIND: Learn more about transfer taxes in Texas
Texas recording fees: $750
Your county will charge a small fee to keep a legal record of your property's mortgage and deed information. This fee can vary slightly based on your location, but you can expect to pay around $750 in Texas. You and your buyer can also negotiate who will cover this expense.
Most counties will have recording fees listed on their websites. For instance, the real property recording fee in Bexar County begins at $26 for the first page and an additional $4 for every additional page. In Harris County, the recording fee is just $16 for the first page and $4 for every subsequent page of a real estate document.
If you want to see exactly how much you'll pay in recording fees, check out your county's website.
Buyer incentives: 2%
Buyer incentives are great tools that sellers can use to appeal to house hunters. Common incentives may include covering some of the buyer's closing costs, providing repair credits, or including valuable items — like appliances or new furniture — in the final sale.
On average, sellers spend around $6,316 on buyer incentives in Texas.
Don't forget about property taxes!
When you sell a home in Texas, you'll still have to pay property taxes for the months you owned the property. Using this prorated system, you won't be on the hook for the full 12 months of taxes. However, this does make it more difficult to estimate how much you'll owe at closing.
The average property tax rate in Texas is #N/A, but this can vary quite a bit depending on your county.
For instance, El Paso has the highest property tax rate in the state at 2.24%. Meanwhile, Borden residents have the lowest property tax rate at just 0.34%.
Be sure to check with your real estate agent so you can find out exactly you'll need to pay in property taxes.
Other Texas closing costs for sellers
Every Texas home sale is unique, which can leave sellers facing a few surprise fees. For example, you might want to hire a real estate attorney to vet the sale of your Dallas duplex, or you may need an appraisal to help price your historic Houston home.
» LEARN: The total cost of selling a house
Regardless of your circumstances, you should be prepared for a couple unforeseen costs. Here are a few of the most common:
- Homeowners Association (HOA) fees
- Mortgage payoff and/or prepayment penalties
- Property appraisal fees
- Settlement or attorney fees
Finding a local expert with plenty of experience in your neighborhood is a great way to save. Knowledgeable realtors in your area will be able to explain which fees to expect or if they change based on the unique features of your Texas neighborhood.
An experienced agent will also be tuned in to local trends and understand which features buyers want the most in their new home. When you use Clever, you'll be paired with a top local realtor with the insights you need to maximize your profits.
Texas closing costs calculator
Your total closing costs will ultimately vary based on your home's value, local fees, and negotiations with your buyer.
Use this Texas closing costs calculator to better understand how much money you'll actually take home after closing.
How to save on Texas closing costs
Although closing costs aren't usually the biggest expense for sellers in Texas, there are a few things you can do to reduce these fees.
Shop around for better prices
It's possible for some sellers to save money by shopping around for lower rates on closing costs and fees.
However, these costs are fairly low and consistent between different companies. When you're already trying to keep track of inspection, repair, and appraisal fees, sifting through several companies for a $50 discount probably isn't worth the effort.
Negotiate for the buyer to pay
In a hot seller's market where there are more buyers than available homes, you can ask the buyer to pay for some of your closing costs.
Buyers expect fierce competition in these market conditions, so they might be willing to compromise if you accept their offer on your Texas home.
» MORE: How to negotiate with buyers before accepting an offer
Save on realtor fees
The easiest and most effective way to reduce your closing costs is to find an agent who charges lower listing fees. In Texas, real estate commission costs an average of $17,654 — that's usually more expensive than the rest of your closing costs combined!
Thankfully, there's a way to save big by selling with Clever. With listing fees of just 1.5%, you'll save up to 50% on realtor commission, putting more money in your pocket.
Frequently asked questions
In Texas, expect to pay about 3.43% of your home’s sale price in closing costs — not including realtor fees. At the median home value of $315,815, this equates to around $10,844 at closing. Learn more about what makes up seller closing costs in Texas.
Buyers and sellers each pay for different closing costs to finalize a sale. In Texas, sellers typically pay for title fees, transfer taxes, owner's title insurance expenses, and recording fees at closing. Learn more about who pays closing costs in Texas.