Seller closing costs in Texas typically include owner's title insurance ($1,800-$2,200), real estate agent commissions (5-6%), any negotiated repairs, and HOA transfer fees. Total seller costs are usually 7-9% of the sale price.
The biggest cost is the agent commission. On a $300K home, your costs could be $21,000 to $27,000. Plan accordingly when calculating your net proceeds.
Title Insurance -- Owner's Policy
In Texas, the seller customarily pays for the owner's title insurance policy. This protects the buyer against title defects. For a $300K home, the owner's title policy costs roughly $1,800 to $2,200 based on Texas Department of Insurance rate charts.
Agent Commissions
Agent commissions are the largest closing cost for sellers. The total commission is typically 5-6%, split between the listing agent and buyer's agent. On a $300K sale, that is $15,000 to $18,000. Recent NAR settlement changes may impact how commissions are structured.
Negotiated Repairs
After the buyer's inspection, you may negotiate repair credits or price reductions. Sellers typically allocate 1-3% of the sale price for potential repair negotiations. Having a pre-listing inspection can reduce these costs.
HOA Transfer Fees
If your home is in an HOA, expect transfer fees, resale certificate fees, and potentially estoppel fees totaling $200 to $500. The HOA may also require a final assessment letter.
Prorated Taxes and HOA Dues
Property taxes and HOA dues are prorated at closing. You pay for the portion of the year you owned the home, and the buyer pays for the rest. This is a credit on the settlement statement, not a cash outlay, but it affects your net proceeds.
