So, you’re ready to sell your home in Texas. Great! As you prepare to make your move, it’s crucial to understand the ins and outs of closing costs in Texas and how they could impact your sale’s profitability. Like all states, both sellers and buyers of houses for sale in Texas pay closing costs, but how much each party pays can vary. These costs typically include reconveyance fees, escrow fees, title searches, and real estate agent commissions. We spoke with top real estate agent Mary Beth Harrison of Dallas, Texas, who has 34 years of experience. We asked her to help clear up exactly what it is you’ll owe at closing in the Lone Star State. By her estimates, closing costs — besides the mortgage payoff — usually come to about 8% of the sales price, but many costs are negotiable. Now, let’s delve into what you need to know about closing costs in Texas and their potential impact on your home sale’s profitability. Here are some of the closing costs that you’ll need to be aware of before you sell: There are quite a few closing costs that make up the 8% that most Texas sellers end up paying. Depending on where you live and the condition of your housing market, you may not end up paying for all of them. But check the chart above to see what costs are negotiable, and what costs the seller always pays. Note that Texas doesn’t pay some closing costs that other states do, such as the transfer taxes. Here are the closing costs you need to know: Your mortgage payoff will most likely be the largest cost that will dip into your home sale profit. Let’s say you still have $100,000 remaining on your mortgage when you sell your home for $200,000. That means that $100,000 of the roughly $200,000 you made from the sale goes toward paying off the rest of your mortgage. In theory, you made $100,000 on the sale. Then, the additional closing costs like property taxes and real estate commissions are taken off of that amount. Because your mortgage is yours and not the buyer’s concern, you will always have to pay for your mortgage payoff — unless your mortgage is being transferred, which is highly unusual these days.Texas seller closing cost overview
Closing cost
Average cost
Seller responsibility
Real estate agent commission
6%
Customary
Escrow fees
1-2%
Split between buyer and seller, negotiable
Title search
$100–$250
Negotiable
Reconveyance recording fee
Varies by county, but typically about $5–$25 for the first page, with extra pages costing more
Customary
Loan reconveyance fee
$50–$65
Customary
Property taxes
Average $2,275 per year (based on $125,800 median assessed value or 1.81%)
Customary
Mortgage payoff
Ask lender
Customary
Real estate attorney fees
$150 to over $400/hour
Not necessary except in certain cases
Texas sellers are on the hook for these closing costs
Mortgage payoff
