Texas Home Seller Closing Costs and Net Proceeds, Explained
Updated October 2026 by Sherien Joyner, Carrollton REALTOR®, GRI
List price is not what you take home. Between your loan payoff, title and closing costs, commissions, prorated taxes, and any repairs or credits, the check you get at closing can look very different from the sign in the yard.
This guide breaks down every common seller cost in a Texas sale so you can plan. When we work together, I prepare a written net sheet for your address before we pick a list price.
At a glance
- Net = sale price − loan payoff − selling costs − credits to the buyer.
- Texas sets title insurance premiums; who pays is negotiable.
- Sellers usually credit the buyer for prorated property taxes.
On this page
The basic formula
Net proceeds = sale price − loan payoff(s) − selling costs − credits to the buyer
The rest of this page explains each piece.
Download My Sellers Guide
I have put together a comprehensive home seller’s guide just for you.
1. Your loan payoff
Your payoff is not the balance on your last statement. Mortgage interest is usually paid in arrears, so the payoff includes interest through the payoff date, plus any home equity loan or line of credit, and sometimes small fees. The title company orders the official payoff letter from your lender.
Have a question about your own situation? Call or text (214) 244-2421, or send me a note. I will walk you through it.
2. Commissions
Real estate commissions are negotiable and set in your listing agreement. Whether you contribute toward the buyer’s agent’s compensation is also negotiated — sometimes up front, sometimes in the offer. I walk through these options in writing before you list.
3. Title insurance and closing fees
- Owner’s title policy: in Texas, title insurance premiums are set by the state, so every title company charges the same premium for the same policy amount. Under the rates effective March 1, 2026, the basic premium is $780 for a $100,000 policy; above that, add 0.494% of the amount over $100,000 (up to $1 million) (TDI basic premium rates). For example, on a $410,000 sale — about Carrollton’s recent median — the basic owner’s premium works out to $2,311 ($780 + 0.00494 × $310,000). Who pays is negotiable and set in the contract.
- Escrow or closing fee: charged by the title company for handling the closing. Unlike the premium, escrow fees vary by company (TDI title insurance FAQ), and your contract decides how they are split. Ask the title company for an itemized estimate.
- Other title charges: tax certificates, recording, document preparation, and delivery fees. Ask for an itemized estimate.
You may choose any title company you want, and a seller cannot require a buyer to use a particular title company as a condition of the sale (TDI, citing RESPA Section 9).
4. Property taxes (prorated)
Texas property taxes are billed for the calendar year, and taxpayers generally have until January 31 of the following year to pay (Texas Comptroller, property tax basics). That means at closing you usually credit the buyer for your share of the current year’s taxes from January 1 to the closing date, because the buyer will pay the full bill later. The title company calculates the proration from the latest tax information.
If you have an escrow account with your lender, the remaining balance is refunded to you after the loan is paid off.
5. HOA and condo costs
If your home is in an HOA or condo association:
- Resale certificate and documents: Texas law requires the association to provide restrictions, bylaws, rules, and a resale certificate (Property Code Chapter 207; for condos, §82.157). Associations or management companies may charge for these.
- Transfer fees and prorated dues: any unpaid dues are paid at closing, and current dues are prorated.
6. Repairs, credits, and concessions
- Repairs after the inspection: often negotiated during the buyer’s option period.
- Credits toward the buyer’s closing costs: a common way to bridge a gap without lowering the price.
- Home warranty: sometimes offered by the seller; it is optional and negotiable. See what is a home warranty.
7. Survey
Depending on the contract, the seller may provide an existing survey (often with an affidavit that nothing has changed), or a new survey may be ordered. Who pays is set in the contract.
8. Taxes on your gain
Texas does not have a state income tax. For federal taxes, if the home was your main home, you may be able to exclude up to $250,000 of gain, or $500,000 if married filing jointly, when you meet the IRS rules (IRS Topic 701). Rentals and second homes are different — talk to a tax professional. Selling a rental? See selling a rental home.
No transfer tax: the Texas Constitution bars any law enacted after January 1, 2016 from imposing a transfer tax on a sale that conveys fee simple title to real property (Tex. Const. art. VIII, §29). You will still see county recording fees.
A seller net sheet worksheet
Use this to rough out your number. The line items are real; fill in your own amounts — I will prepare an exact version for your address.
| Line item | Your estimate | How it’s set |
|---|---|---|
| Sale price | $ | Comps and negotiation |
| − Mortgage and HELOC payoff | $ | Lender payoff letter |
| − Listing commission | $ | Your listing agreement |
| − Buyer-agent compensation or concessions, if any | $ | Negotiated |
| − Owner’s title policy (if seller pays) | $ | State-promulgated rate |
| − Escrow / closing fee (your share) | $ | Title company |
| − Prorated property taxes | $ | Title company calculation |
| − HOA payoff, resale certificate, transfer fees | $ | Association |
| − Repairs or repair credits | $ | Inspection negotiation |
| − Survey, home warranty, other | $ | Contract |
| = Estimated net proceeds | $ |
How to keep more of your sale price
- Price it right on day one. In Carrollton, about 44% of listings had a price drop in the three months ending September 2026 (Redfin). Price cuts after the first weeks often cost more than pricing correctly up front.
- Fix what buyers will ding, skip what they will not pay for. See getting your home ready to sell and maximizing home value.
- Pre-empt inspection surprises. Known issues disclosed with paperwork negotiate better than surprises.
- Compare options for a house that needs work. See selling a house as-is in Carrollton.
Get your real net number
Send me your address and approximate mortgage balance. I will prepare a seller net sheet with current comps and every line item.
Call or text (214) 244-2421.
Seller closing costs FAQ
What closing costs does a seller pay in Texas?
Common seller costs include the loan payoff, commissions, the owner’s title policy if the contract says the seller pays, part of the escrow fee, prorated property taxes, HOA fees, and any agreed repairs or credits. Each is set by your contracts and the title company.
Who pays for the title policy in Texas?
The buyer and seller negotiate who pays the owner’s title policy, and the choice is written into the contract. Texas sets the premium, so every title company charges the same rate for the same price.
Why do I owe property taxes at closing in Texas?
Texas property taxes are billed for the calendar year and are generally due by January 31 of the next year. At closing, the seller usually credits the buyer for the seller’s share of the current year.
Are real estate commissions negotiable in Texas?
Yes. Commissions are negotiable and set in your listing agreement. Whether you pay toward the buyer’s agent’s compensation is also negotiated.
Do I pay tax on the profit from selling my home?
Texas has no state income tax. Federally, you may exclude up to $250,000 of gain, or $500,000 if married filing jointly, on a main home if you meet IRS rules. Ask a tax professional about your situation.