"Jennifer, if Zillow says $450K, I'll walk away with about $450K, right?"
Not quite. 💰
The short answer: selling a house in Texas usually costs the brokerage compensation you negotiate, the owner's title policy if you agree to pay it (approx. $2,509 on a $450,000 sale under the Texas Department of Insurance (TDI) rate effective March 1, 2026), half the escrow fee, and your share of this year's property taxes. In the example below, that adds up to approximately 8% of the price, BEFORE your mortgage payoff.
What closing costs does the seller pay in Texas?
Most of the list is written right into the Texas Real Estate Commission (TREC) resale contract, Form 20-19, effective July 1, 2026.
- Brokerage compensation. Negotiable and not set by law, per the National Association of REALTORS®. Usually the biggest line.
- The owner's title policy. Paragraph 6A lets you negotiate who pays. In Texas the premium is set by TDI, so it's the same at every title company: approx. $2,262 at $400,000, $2,756 at $500,000.
- Seller's expenses (Paragraph 12A). Releasing your existing loan. Tax certificates. Preparing the deed. Half the escrow fee.
- Anything you agree to pay toward the buyer's costs. Also Paragraph 12A.
- Your homeowners association (HOA) fees. Dues are prorated (Paragraph 13). In Prosper and Celina master-planned communities, ask early about resale certificate and transfer fees.
Why do sellers pay property taxes at closing in Texas?
Because Texas bills at the END of the year. Per the Texas Comptroller, taxing units start mailing bills in October, and in most cases they're due by January 31.
Here's the part sellers sometimes get wrong: 🚨
If you close in December, you've lived in the house for 11 months of a tax year you haven't paid yet. TREC Paragraph 13 says current-year taxes are "prorated through the Closing Date." So your share comes out of your proceeds.
Not a penalty. Not an extra fee. Just a bill you already owed, collected at the closing table.
In McKinney, Allen or Frisco, that line can outsize the title policy. Use your latest tax statement.
How much will I net from selling my house? (an example)
A hypothetical $450,000 sale closing December 1, 2026. Your numbers will differ.
| Line item | Approx. cost | Assumption |
|---|---|---|
| Brokerage compensation | $27,000 | Example only: 6% total. Negotiable, not set by law |
| Owner's title policy | $2,509 | TDI basic premium at $450,000, if seller pays |
| Property tax proration | $8,236 | Example: $9,000 annual bill, Jan. 1–Nov. 30 (334 days) |
| Half escrow fee, tax certificates, deed, HOA | Varies | Ask your title company for a quote |
| Subtotal | approx. $37,745 (8.4%) | Before mortgage payoff and any buyer concessions |
Then subtract your loan payoff. THAT is your number.
And negotiation may move it. The Texas Real Estate Research Center (TRERC) reported a statewide median seller price cut of $14,900, about 4% of initial list price, in August 2026 data published October 23, 2026.
Quick answers
Does the seller pay for title insurance in Texas?
It's negotiable (TREC Paragraph 6A). Many sellers plan for it.
Do I get my escrow account balance back?
Usually. Under the Consumer Financial Protection Bureau (CFPB) rule 12 CFR 1024.34(b), your servicer generally must refund it within 20 business days of payoff.
Can I pay my 2026 taxes early to avoid the proration?
You may. Then the buyer may credit you back for their share of the year, per TREC Paragraph 13. Ask your title company to confirm before you pay.
My take
Here's the bad practice I'll name plainly: a "what's my home worth" number with no costs under it. A list price is not a plan.
And sometimes the honest math says don't sell yet. If what's left after costs and your payoff won't cover the down payment and closing costs on your next home, waiting may be the right call. I'll tell you that before I'll list you.
You don't sell for the price. You sell for what's LEFT. 🏡
📲 DM me "MY NET" on Instagram @JenniferKirkRealtor, or call 214-592-7605.
Jennifer Kirk, REALTOR® · Real Broker, LLC · Equal Housing Opportunity. I'm not a lender or financial advisor. Talk with a licensed lender about your situation.
Sources
All pages accessed October 29, 2026.
- Texas Department of Insurance, Title Insurance Basic Premium Rates (effective March 1, 2026)
- Texas Real Estate Commission, One to Four Family Residential Contract (Resale), Form 20-19, effective July 1, 2026 · form PDF
- Texas Comptroller, Paying Your Taxes
- Texas Real Estate Research Center, Texas Housing Insight, October 2026 (August data, published October 23, 2026)
- National Association of REALTORS®, What the NAR Settlement Means for Home Buyers and Sellers
- Consumer Financial Protection Bureau, 12 CFR 1024.34
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