Seller Closing Cost Calculator for Texas (2022 Data)

Written by Elizabeth BoydSeptember 14th, 20224 minute read

Jump to section: Texas closing cost calculator | Texas closing cost breakdown | How to save on Texas closing costs | FAQ

Seller Closing Cost Calculator for Texas

Use our Texas seller closing cost calculator to estimate how much you’ll owe at closing when you sell your house.

Most Texas home sellers should expect to pay closing costs of between 7.7–8.7%, including realtor fees. Based on the median home value in Texas ($308,628), that'd be between $23,764–$26,850.

Remember that closing costs will vary depending on the specific county you’re selling in. Factors like sales price, realtor commission rates, and local taxes and fees will affect the final price tag. Talk to your agent or attorney for the most accurate estimate.

Quick Tip: The best (and sometimes only) way to save on closing costs is to lower your realtor commission. Clever Real Estate pre-negotiates low rates with top local agents, saving you up to 50% — $9,600 on average! Learn more.

Texas seller closing cost calculator

Breakdown of seller's net sheet for Texas

Your fees and closing costs will vary depending on your situation. But here's how closing costs in Texas typically break down.

Closing cost
Amount
5–6% of sale price
Document preparation and courier
$125–$300
$150–$160 or 0.05%
$350–$700 or 1–2% of the sales price
Guaranty fee
$2
Home warranty
$500–$600
Up to $375
Lease agreement
Negotiable, depends on lease length and buyer’s mortgage costs
Note and deed of trust
$200–$450
0.6–0.9% of sale price
Release of lien
Varies based on amount and type of lien
Varies, 0–20% for federal capital gains
$50–$200
Varies based on time of sale

Realtor commission fees: 5–6%

Home sellers pay commission to their listing agent and the buyer’s agent. The standard amount is 6%, split 50/50 between the realtors. With an average home price in Texas of $313,339, that's $18,800 in realtor commission fees.[1]

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Recording fees: $150–160 or 0.05%

These fees cover the costs of recording the deed and other necessary documents with the county.

Escrow fee: $350–700 or 1–2%

The title company uses an escrow company for funds security. The company holds funds in escrow, like the buyer’s earnest money, real estate fees, loan fees, and your profit. The buyer and seller often split escrow fees.

Homeowners association fee: Up to $375

You'll have extra costs if you sell a home that's part of a homeowner association (HOA). The dues must be current, and you’ll likely pay an HOA transfer fee. Many HOAs also charge document fees related to the transfer to the new owner. But a Texas HOA cannot charge more than $375 for a resale certificate.[2]

Owner title policy: 0.6–0.9% of sale price

Title insurance protects your buyer if ownership problems arise after they purchase the property. In Texas, the seller usually pays for this insurance, and while it’s not a requirement, it’s a good practice. In turn, your buyer pays for the lender’s title policy required by their mortgage company.

» MORE: How Much is Title insurance in Texas?

Restrictions and sales tax: Varies

You won’t pay state sales tax on your home sale since Texas has no income tax. But you may have to pay federal capital gains tax. The amount varies depending on whether it’s short-term (ownership for less than a year) or long-term (ownership for longer than a year).

You may also qualify for an exemption on up to $250,000 (individual) or $500,000 (married couple) of your profit. You won’t pay any capital gains taxes at closing. Instead, you’ll pay the IRS later if you owe.

Warranty deed: $50–200

A warranty deed guarantees the buyer that you own the property free and clear. Your guarantee also extends to any claims of ownership that may arise from before you were the owner. This is also called a general warranty deed in Texas.

Prorated property taxes: Varies

Property taxes are assessed at the end of the year in Texas. So the buyer must pay for the entire year when they become due the following year. But they rarely own the house for that whole period. That means you need to pay your share at closing with a prorated tax credit for the time you owned the house during the year you sold.

How to save on seller closing costs in Texas

✅ Use a low commission realtor

Realtor fees are the biggest transaction-related expense for most Texas home sellers. Fortunately, sellers now have a lot more control over that cost. That’s because real estate commissions are trending lower and listing agents are accepting commission fees below the standard rate.

Try a free agent matching service like Clever Real Estate , who connects you with top local agents from name-brand brokerages (Keller Williams, Century 21, etc,) and pre-negotiates lower listing fees on your behalf. Clever sellers get full service and support for a 1% listing fee vs. the typical 2.5-3% rate. That often translates to tens of thousands of dollars in savings at the closing table.

💰 Match with top local agents, save thousands on commission fees.

Clever pre-negotiates low rates with top agents nationwide. 100% free with no obligation. Give it a try today!

✅ Negotiate closing costs with your buyer

You may also cut closing costs by negotiating with your buyer. But that depends on whether it's a seller's or buyer's market. Proceed with caution and consult with your agent to determine whether asking your buyer to pay extra closing costs is advisable.

Texas seller closing cost calculator FAQ

Property taxes in Texas are paid in arrears, so the entire tax bill for the year is payable the following January. Assuming you sell your property on July 1, you must pay six months of taxes (January 1 to June 30) for the time you owned the home before selling. The buyer (new owner) pays the whole property tax bill when it comes due. You can use our proration calculator to estimate the property taxes due from you and the buyer at closing.

Seller closing costs in Texas typically range between 7.7%–8.7% of your home’s purchase price, which includes realtor commission fees (6% average). That average can provide a rough estimate of your total costs at closing, but your listing agent can give you a more accurate estimate. Learn more about calculating Texas closing costs.

ARTICLE SOURCES
[2]

Texas Realtors. "New HOA laws."