Money And Numbers
What It Actually Costs To Sell A House In Texas
Commission is the number everyone knows. It is not the only deduction, and the ones people forget are usually the ones that change the decision.
Most sellers plan around one figure: the price. Then the closing statement arrives and there are a dozen lines on it. None of them are unusual, and all of them are predictable if you know what to expect.
What follows is what actually comes off the top in a Texas residential sale. Amounts vary by transaction and by what is negotiated, so this names the lines rather than inventing figures for them.
Agent Commission
The largest single deduction in a traditional sale. Commission is negotiable and always has been, and how buyer-side compensation is handled has changed in recent years, so it is worth asking directly rather than assuming a standard rate. Get it in writing in the listing agreement.
If you sell without an agent there is no commission, but you take on the pricing, marketing, buyer screening and negotiation yourself. That trade is covered in selling without a realtor.
Title And Closing Costs
In Texas, closings are typically handled by a title company rather than an attorney. The title work includes a search, a commitment, and an owner's title insurance policy. Who pays which part of it is negotiated in the contract and varies by area and by custom, so read that section rather than assuming.
- Title search and examination
- Owner's title insurance policy premium
- Escrow or closing fee
- Recording fees paid to the county clerk
- Courier, wire and document preparation charges
- Survey, if one is required and none exists
Property Taxes, Prorated
Texas property taxes are billed in arrears, meaning you pay for a year that has already happened. At closing the current year is prorated between you and the buyer up to the closing date, so you are responsible for the portion of the year you owned the house. If taxes for a prior year are unpaid, those get settled from the proceeds too, along with any penalties and interest.
Worth Checking Before You Sell
If you are 65 or over, Texas offers a school tax ceiling on a homestead and a deferral option, and a percentage of that ceiling can generally transfer to another Texas homestead. The county appraisal district can tell you what applies to you. It is free to ask and it occasionally changes whether selling is necessary at all.
Mortgage Payoff And Anything Secured Against The House
Your loan is paid off from the sale proceeds, and the payoff figure includes interest to the closing date, which is why it differs slightly from your statement balance. Anything else recorded against the property comes out here too: a home equity loan, a judgment lien, a contractor's lien, or unpaid municipal charges the city has secured against the land. Those surface in the title search and have to be cleared for title to pass.
Repairs, Concessions And The Option Period
This is the category sellers underestimate most. In a financed sale there are usually three separate bites:
- Pre-listing repairs to make the house market-ready.
- Post-inspection repairs or credits, negotiated during the option period once the buyer's inspector has been through.
- Lender-required repairs, where an appraiser flags something that has to be fixed before the loan will fund, while you still own the house.
Buyer closing-cost concessions are common too, and they come straight off your net. None of these appear in the listing price, which is why the headline number and the check you receive are different animals.
The Costs Of Time
While a house is on the market you keep paying the mortgage, the taxes, the insurance, the utilities, any HOA dues and any district assessments. On a vacant house, check the insurance position carefully, because standard policies commonly limit or exclude cover once a property has been empty beyond a set period.
Comparing A Listing To A Cash Offer Properly
Do it as a net calculation, not a price comparison. Take the realistic sale price, then subtract commission, title costs you are paying, prorated taxes, pre-listing repairs, post-inspection credits, concessions, and the carrying cost for the expected time on market. Compare that against the cash number, which normally has no commission, no repairs and no concessions.
Done properly the listing still wins for a sound house with time available. It stops winning as the repair list grows, as the timeline shortens, or when the house cannot be financed at all. The arithmetic behind the cash side is in how cash buyers calculate an offer.
Not Tax Advice
Whether you owe tax on a sale depends on your circumstances, including how long you owned and lived in the property. There are exclusions and partial rules that can apply. Speak to a CPA before you sell rather than after, because the answer can be material and some of it depends on timing.
Questions
Related Questions
Who pays closing costs in Texas?
It is negotiated in the contract and local custom varies, so there is no single answer. Read the relevant section of your contract. In a purchase from a cash buyer, the buyer commonly covers the ordinary closing costs, but ask rather than assume.
Are property taxes paid at closing?
The current year is prorated between seller and buyer up to the closing date, because Texas bills in arrears. Any unpaid prior-year taxes, plus penalties and interest, are settled from the proceeds.
Can I sell without paying commission?
Yes, either by selling privately or by selling directly to a buyer. You then take on the work an agent would have done, which for many sellers is worth more than the commission saved.
What is the biggest cost people forget?
Post-inspection repairs and buyer concessions, followed by the carrying cost of time on market. Neither appears in the listing price, and together they routinely account for more than people expect.
