In Texas, the seller's side of closing typically costs about 5% to 10% of the sale price, and the single biggest line is the real estate commission. Beyond that, sellers usually pay for the owner's title insurance policy, a share of title and escrow fees, prorated property taxes, and a few small recording fees. Texas has no state transfer tax, which keeps the list shorter than in many other states. Here is exactly what those costs are, what is negotiable, and how to read your settlement statement before you sign.

If you are a buyer working the other side of the table, my buyer closing costs guide covers what purchasers pay in Texas, and the seller closing costs guide has the same breakdown in one place.

1. The real estate commission is the biggest number

In Texas, commissions are fully negotiable, and there is no set rate. The most common structure in the San Antonio and Hill Country market is a total of about 5% to 6% of the sale price, split between the listing agent and the buyer's agent. On a $350,000 sale, that is roughly $17,500 to $21,000. The commission is typically deducted from your proceeds at closing, so it shows up on the settlement statement as a seller expense.

Two things matter more than the rate. First, the buyer's agent compensation is often the more sensitive part, because it affects how many agents will bring buyers to your door. Second, a flat fee or lower rate means little if the home sits and ends up selling for less. The real cost of selling is usually the gap between your list price and your final contract price, not the commission line. A well-priced home that sells in the first weeks almost always nets more than an overpriced one that sits and gets cut.

2. Owner's title insurance policy

In Texas the seller customarily pays for the buyer's owner's title insurance policy, which protects the new owner against title defects, liens, or claims that surface later. Premiums in Texas are state-regulated, and for a mid-priced home the policy typically runs about $2,000 to $3,500 depending on the sale price. It is a one-time cost at closing and is one of the largest fixed seller expenses after commission.

Who pays the title policy is actually negotiable in Texas, so it can be a bargaining chip. In a slower market, buyers sometimes accept taking on the owner's policy themselves as a concession to help a deal along, and sellers sometimes offer to pay it to keep an offer together. My seller title insurance answer walks through when it is worth pushing back on.

3. Title, escrow, and closing fees

Title and escrow companies handle the paperwork, hold the funds, and make sure the deed and money change hands correctly. In Texas there is no attorney required at closing; the title company runs the settlement. The seller's share of title, escrow, and settlement fees typically runs a few hundred dollars up to about $1,500 depending on the transaction and how the fees are split.

Recording fees are modest, usually around $50 to $100, to file the deed and any release of lien with the county. Some sellers also see HOA transfer or resale fees, a survey if the buyer or lender requires one, and repair credits or buyer concessions that come out of the seller's side. Every one of these shows up on the settlement statement, which is why I always tell sellers to review the draft statement before closing day, not at the table.

4. Prorated property taxes

Texas property taxes are paid in arrears, meaning you pay them for the time you owned the home. At closing, the tax bill for the year is prorated: you pay the portion covering the days up to closing, and the new owner pays the rest. Because Bexar and surrounding Hill Country county tax rates are a meaningful part of annual costs, this proration can be a real four-figure number, and it depends entirely on your closing date. Closing early in the year means you owe less of the current year; closing late means you owe more.

If you have a homestead exemption in place, that does not change at closing beyond transferring the benefit going forward. Your title company calculates the exact proration using the current assessed value and the local tax rate, so the number is precise rather than an estimate by the time you see the statement.

5. What you do not pay in Texas

Texas does not charge a state real estate transfer tax, so there is no big tax line based on the sale price like some other states have. There is no attorney requirement at closing in most transactions, which keeps legal fees off the standard list. If you use a title company, which nearly all Texas resales do, the settlement process is bundled into the escrow and title fees above.

Frequently Asked Questions

Patrick Kevin Fagan

Loan Officer and Realtor | AXEN Realty LLC | San Antonio and Texas Hill Country

Licensed Sales Agent | 454749 | TX

210-317-6514 | pfagan@nexalending.com | About Patrick

Sincerely, Patrick Kevin Fagan