Seller's Guide · Step 3 of 10

Know Your Costs: What It Costs to Sell a Home in Texas

Your sale price isn't what you take home. Before we ever put a sign in the yard, I want you to know roughly what you'll walk away with. Here are the costs most Texas sellers plan for.

Your mortgage payoff

Your payoff is usually a little more than the balance on your last statement, because it includes interest through the day the loan is paid off. Include any home equity loan or line of credit too. The title company orders the official payoff, but a recent statement lets us estimate early.

Title insurance and title company fees

In Texas, the seller usually pays for the buyer's owner's title policy. Title insurance rates are set by the Texas Department of Insurance and based on the sale price. You'll also see escrow or closing fees, recording fees and smaller charges, which vary by title company and by what the contract says.

Property taxes

Texas property taxes are paid in arrears, usually by the end of January for the year before. At closing, you'll credit the buyer for your share of this year's taxes up to your closing date. The good news: Texas has no state income tax and no real estate transfer tax.

Commission

Commission is negotiable and spelled out in your listing agreement. You also decide whether to offer compensation to a buyer's agent, and some buyers ask for it in their offer. I'll walk you through your options so nothing is a surprise.

Other costs to plan for

• HOA fees. A resale certificate, possible transfer fees and dues prorated to closing.
• Survey. If you have your existing survey and nothing has changed, you can often provide it with a T-47.1 affidavit instead of paying for a new one.
• Repairs and credits. Repairs before listing, repairs or credits after the buyer's inspection, and any help you agree to give with the buyer's closing costs.
• Home warranty. Optional, but some sellers offer one to the buyer.
• Moving. Movers, storage, and any overlap if you buy your next home first.