What Does A Home Seller Pay for in Closing Costs in Texas?

Last month, we covered what a homebuyer pays in closing costs in Texas, and now we’ll cover the other side! The buyer and seller will pay different amounts when it comes to closing costs. The good news is that some of the costs are negotiable. Here is a breakdown of what a seller pays for in closing costs and if it’s negotiable. 

Title Company Fees for Homesellers in Closing Costs

These fees are specific to the title company that the seller usually pays. 

Title Insurance Premium

This is the most common seller paid expense in Texas, but it is negotiable depending on the situation. On a $450,000 home, the title insurance will cost $2,677. The state sets this fee and calculates it as a percentage of the sales price on a sliding scale. The sliding scale means it will change as the price increases. For a more in-depth understanding, visit the Texas Department of Insurance website here

Escrow Fee 

The buyer and seller each pay their own escrow fee. An escrow fee is the title company’s administrative fee for working on the file through closing. This fee is set by the title company and can range from $350 to $700, depending on the title company you choose. 

Document Preparation

The documents you sign at closing, like the deed, are put together by a third-party attorney. This expense is a non-negotiable seller expense. It usually ranges from $100 to $150. 

Tax Certificate

This is another non-negotiable seller expense. A tax certificate will verify the correct amount of taxes to collect in order to balance the taxes at the time of closing. The pricing varies by company or county but typically ranges from $40 to $70. 

Delivery/Courier Fees

Depending on what the title company charges, the buyer and seller can share these delivery fees. Not all title companies charge this fee, so ask the company or your REALTOR®. This fee covers any documents that need to be collected and mailed. Price will vary depending on the postage cost and how much a courier service may charge but typically ranges from $25 to $250.

Mobile Notary

Especially during the pandemic, this was a more common fee as a mobile notary allows for someone to come to you to sign instead of signing in person. This fee will range from $100 to $250 for each signing, meaning the buyer and seller sign separately and each pay this cost.  

Contractual Expenses for Home Sellers in Closing Costs

These expenses don’t go to the lender or the title company. They are expenses that go to third parties or directly to the buyer. 

Home Warranty

A one-year home warranty will cover items insurance won’t cover, like HVAC and the water heater. Typically, a buyer will ask for a credit to cover the cost of this. This expense is entirely negotiable and ranges from $500 to $700.

Home Survey

Usually, the seller furnishes the buyer with an existing survey. If one doesn’t already exist, the survey can be negotiated for who pays for it. The average cost is $400 to $550 but can easily cost thousands of dollars for larger properties. 

HOA Documents

The buyer will typically ask the seller to cover the cost of furnishing the HOA bylaws, rules, regulations, and other documents. Price will range depending on the HOA but cost around $200 to $250. 

Resale Certificate

Sometimes included in the HOA documents is the resale certificate. The HOA documents and the resale certificate together are called a resale package and can cost $400 to $500. 

If it’s not included in the HOA documents, the accounting information the title company needs in order to close will cost $200 to $250 to receive. 

Transfer Fee

The buyer usually pays for this fee. A transfer fee is an administrative fee paid to the HOA to transfer ownership to their system. It costs from $150 to $250.


The most considerable fees the seller will pay will be the commission for the seller’s and buyer’s agent. A seller will usually pay 5% or 6% of the sales price in total commissions between the agents.


If you’re ready to sell this month, contact us today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

Part One: Should I Rent Out My Home Instead of Selling?

Selling or renting is the age-old question for property owners, and there is no right or wrong answer. Let’s look at what the market is doing now and then discuss factors to consider to make the best choice for your situation. 

The Market Now

The Central Texas housing market continues to be strong for many reasons, including our high quality of life, relatively low cost of living, and even the coronavirus pandemic. 

COVID-19 has altered the way we search for homes, show homes, and buy and sell homes. It has also kept some local home sellers out of the market–those who don’t “have to” move–likely because they’re waiting for the effects of the pandemic to dwindle. That means that local demand for housing outweighs supply, so homes are selling for a higher price. This process is called a seller’s market. But, the real estate market is dynamic, and this could change at any time.

Additionally, mortgage interest rates remain at historic lows, motivating buyers to make a purchase now.

The local and national economies impact the housing market as well, so you’ll need to assess items that can increase or decrease city growth. People could be relocating for jobs, which can cause job losses and increases. Are businesses moving into the area? Are houses being fixed or abandoned? Each aspect will help you get a better understanding of where the market and economy are going. 

Lastly, rent prices have increased over the years, with an increase in Millennials and Baby Boomers demanding affordable rental housing. But, this is a trend that could change now due to the economy. 

What to Consider

Do you want to be a landlord?

Managing a property is a time consuming and challenging job. Consider if you have a team to help you, like a handyman or real estate agent, or do you need to hire them? Ask yourself if you have the time and effort to screen tenants or if you’re willing to hire a third party to do so. 

It’s essential to factor in where you’ll be living. If you’re out of state, you’ll need a property manager. If you’re staying local, then you need to know what that requires. Not only will you need the time, effort, and cash to be a landlord, you’ll need to be knowledgeable in the local, state, and fair housing laws. 

Read my owner’s resource for “5 Things You Should Know Before Becoming a Landlord”.


Are you buying another property while renting the other?

To get a second mortgage, lenders will consider rental income, usually up to 75%, to be counted as income sources. But, with low mortgage interest rates, this might be the time to refinance and pay an even lower mortgage payment. 


Will home values increase in your area?

While it’s impossible to predict the market, it’s smart to follow it to see where your home’s value could be in a few years. Suppose you expect the market to work in your favor in a few years and increase the value. In that case, you might want to consider renting it now and selling later to take advantage of the appreciation. Conversely, if you think this is the best the market will do for your house, then sell now. 

To calculate the potential return on your investment property, you’ll need to know your cash flow and equity. To read an example, read my investor resource “How to Calculate the Potential Return on Your Investment Property.” 

A cost market analysis (CMA) will help you answer what your house is worth right now. It will also help you understand the current housing market and the price of other similar properties. Get a full CMS explanation here.   


This is part one of a two-part series. In the next blog, I’ll share the specific costs of renting and selling. Check back in December for part 2!