Most homeowners know they’ll walk away from closing with less than the sale price.
What they don’t always know is how much less or exactly where that money goes. The gap between a home’s sale price and the check a seller actually receives is one of the most consistently surprising parts of the entire transaction. People who have sold homes before are sometimes still caught off guard by the final settlement statement.
This post breaks down every line item a Texas seller is likely to see at closing, what each one actually represents, and roughly what it costs, so there are no surprises when the numbers come together.
The Honest Range to Start With
Seller closing costs in Texas typically run between 6 and 10 percent of the sale price, and that range is wide for a reason. The largest variable, agent commission, can shift significantly depending on how the transaction is structured. Property taxes, HOA fees, and negotiated concessions add further variation.
On a $400,000 home, that range translates to $24,000 to $40,000 coming off the top before a seller sees their net proceeds. On a $600,000 home, it’s $36,000 to $60,000.
Those numbers can feel jarring the first time they’re laid out clearly. But every line item exists for a reason. Understanding what you’re paying for is the first step toward knowing which costs are fixed and which ones are negotiable.
The Biggest Line Item: Agent Commission
Commission is almost always the largest single cost a seller faces, and it’s the one that has changed most significantly in recent years.
Following a major settlement involving the National Association of Realtors that took effect in August 2024, commission structures became fully negotiable and must be agreed to in writing. In Texas, total commissions have generally ranged around 5 to 6 percent of the sale price for traditional transactions — typically split between the listing agent and the buyer’s agent.
On a $400,000 sale at 5.5 percent, that’s $22,000. On a $600,000 sale, it’s $33,000.
This is the cost most worth having an explicit conversation about before signing a listing agreement. Rates are negotiable, structures vary, and some sellers opt for reduced-commission or flat-fee arrangements depending on their situation and the property. The key is understanding what you’ve agreed to before the transaction is underway, not after.
Title Insurance: A Texas Convention
Texas follows a convention that surprises some sellers coming from other states: the seller typically pays for the buyer’s owner’s title insurance policy.
This isn’t a legal requirement, it’s a customary practice that has been the norm in Texas real estate for decades. The owner’s title policy protects the buyer against any claims or disputes about the property’s ownership history that might surface after closing.
The cost is set by the Texas Department of Insurance on a standardized rate schedule based on the sale price. On a $400,000 sale, the owner’s policy runs approximately $2,400 to $2,600. On a $600,000 sale, closer to $3,400.
In a buyer’s market, sellers sometimes negotiate to split this cost or shift it to the buyer. In a competitive market, sellers typically absorb it without discussion. Given where DFW is right now, more inventory, more buyer leverage than in recent years, it’s a line item worth evaluating in your specific transaction.
Property Taxes: The Proration
Texas property taxes are paid in arrears, meaning you pay this year’s taxes sometime during or after this year. When you sell mid-year, you owe the buyer a credit for the portion of the year you owned the property.
This isn’t technically a closing cost, it’s a proration of an obligation you already have. But it shows up on the settlement statement as a real cash outlay, and sellers who aren’t expecting it are often surprised.
The math is straightforward. If your annual property tax bill is $8,000 and you close in July, you’ll credit the buyer approximately $4,000. This covers your roughly six months of ownership before the sale.
DFW property tax rates vary by county and municipality but tend to run between 1.8 and 2.5 percent of appraised value. On a $400,000 home with a $7,200 annual tax bill closing in August, the proration credit would be roughly $4,800.
This is one of the costs that varies most by timing. Sellers closing in December owe close to a full year’s proration. Sellers closing in January owe almost nothing.
Escrow and Settlement Fees
The title company that handles the closing charges for its services. This typically includes an escrow fee, covering the management of funds during the transaction, and a settlement or closing fee for coordinating the paperwork, disbursements, and deed transfer.
These fees are usually split between buyer and seller, with the seller’s share running roughly $400 to $700 depending on the title company and the complexity of the transaction. Some title companies charge separately for each component; others bundle them into a single closing fee.
Unlike commission, these fees don’t vary dramatically from company to company in Texas. They’re also not the place where most sellers find meaningful savings.
Recording Fees
When the deed transfers from seller to buyer, the transaction is recorded with the county. This is a government fee, not a title company fee, and it’s relatively modest. Recording fees in Texas typically run $30 to $150 depending on the county and the number of pages being filed.
Small enough that it rarely registers as a notable cost, but it shows up on the settlement statement and it’s good to know what it represents.
HOA-Related Costs
If the property is in a homeowners association, plan for a few additional line items.
The resale certificate is a document the HOA prepares that discloses the association’s financial health, rules, current dues, any pending violations, and the balance of any amounts owed on the property. In Texas, the seller is responsible for providing this to the buyer, and the HOA charges for preparing it. Resale certificate fees typically run $200 to $500, though some HOAs charge more.
Some HOAs also charge a transfer fee, a one-time cost to transfer the account from the seller’s name to the buyer’s. These run $100 to $400 depending on the association.
If there are any unpaid HOA dues, assessments, or fines on the account, those will also be settled at closing from the seller’s proceeds.
What Texas Sellers Don’t Pay
One significant advantage of selling in Texas that often surprises sellers relocating from other states: Texas has no real estate transfer tax.
Many states charge a tax each time a property changes hands, sometimes called a deed stamp, documentary stamp, or transfer tax. In California, for example, county transfer taxes can run $1.10 per $1,000 of sale price, with additional city taxes in major markets. While in New York, the combined state and city transfer taxes can reach 1.825 percent on residential sales above $500,000.
In Texas, the state doesn’t charge it. Most Texas counties don’t either. On a $400,000 sale, that’s a savings of anywhere from $400 to several thousand dollars compared to what sellers in other states pay just to transfer a deed. It’s a real advantage that’s easy to take for granted if you’ve always sold in Texas.
What Sellers Often Forget to Factor In
There are a few costs that don’t technically appear at closing but affect the net proceeds calculation.
Repairs agreed to as part of the transaction come out of the seller’s pocket before closing or as a credit. These can range from a few hundred dollars to several thousand depending on what was negotiated.
Seller concessions, contributions toward the buyer’s closing costs, are increasingly common in the current market. Buyers facing their own pressures are requesting them, and sellers in a market with growing inventory are agreeing more often. A $5,000 to $10,000 concession on a $400,000 transaction isn’t unusual right now.
And the mortgage payoff, whatever remains on the outstanding loan, is settled from proceeds at closing. This isn’t a closing cost per se, but it directly determines the net check a seller walks away with.
Putting It Together: A DFW Example
On a $425,000 DFW home sale closing in May, you might see something close to this on their settlement statement:
Agent commission at 5.5%: approximately $23,400. Owner’s title insurance: approximately $2,700. Property tax proration through May: approximately $3,500. Escrow and settlement fee (seller’s share): approximately $500. Resale certificate (if in an HOA): approximately $350. Recording fees: approximately $75. Seller concession toward buyer costs: $5,000.
Total costs: approximately $35,500, or roughly 8.4 percent of the sale price.
Net proceeds after those costs and a remaining mortgage balance of $180,000: approximately $209,500.
Every transaction is different. But running through the numbers before the offer is accepted, not after, is what makes the final settlement statement feel like confirmation rather than a surprise.
Closing cost figures in this post reflect typical ranges for DFW transactions in 2025–2026. Actual costs vary by sale price, timing, HOA membership, and negotiated terms. Sellers with specific questions about their transaction should consult their title company or a licensed Texas real estate professional.