When selling your home, it’s important to understand the costs you’ll be responsible for at closing. While every transaction can be a little different, sellers are commonly asked to pay several fees and charges. Here’s a broad overview of what you might expect:
Common Seller Closing Costs
- Title and Escrow Fees: These cover the costs of closing at a Texas title company. Think of this as the administrative fees charged by a title company office.
- Document and Deed Preparation Fees: Preparing and recording legal documents required for the sale. In many ways, this is like attorney fees.
- Tax Certificate: A fee for verifying property tax status and payments.
- Owner’s Title Policy: Protects the buyer from claims against the property’s title. Required in Texas.
- One-Year Home Service Warranty: Sometimes offered to the Buyer as an added benefit, and is often requested by Buyers in Texas.
- HOA Transfer Fees: Fees charged by the homeowners’ association / HOA management company for updating their records to the new owner (if applicable).
- Seller’s Contribution to Buyer’s Closing Costs: In some cases, sellers agree to help cover some of the buyer’s costs.
- Real Estate Commission: Typically a percentage of the sale price, paid to the listing and buyer’s agents.
In addition, there are prorated items that the seller is responsible for at closing, such as:
- Current Year’s Prorated Property Taxes: You pay your share up to the closing date.
- Prorated HOA Dues: Any HOA dues owed up to the date of closing – Or, Seller pay receive a refund if already pre-paid.
- Lien or Mortgage Payoffs: Any outstanding mortgages or liens must be paid off at closing in order to provide the new owner a free and clear title.
Example Closing Costs for Different Price Points
To illustrate, here’s how seller closing costs might look for homes at various price points. (Note: These are estimates and actual costs may vary based on your location, agreements, and specific transaction details.)
$400,000 Home Sale
| Item | Estimated Cost |
|---|---|
| Title & Escrow Fees | $625 |
| Doc & Deed Prep | $150 |
| Tax Certificate | $75 |
| Owner’s Title Policy | $2,400 |
| Home Warranty | $500 |
| HOA Transfer Fee | $300 |
| Real Estate Commission (6%) | $24,000 |
| Prorated Taxes/HOA | Varies |
| Mortgage Payoff | Varies |
Estimated Total without Broker Commissions, Prorations, Payoffs): ~$4,000
Approximately 1% of Sales Price
$800,000 Home Sale
| Item | Estimated Cost |
|---|---|
| Title & Escrow Fees | $625 |
| Doc & Deed Prep | $150 |
| Tax Certificate | $75 |
| Owner’s Title Policy | $4500 |
| Home Warranty | $500 |
| HOA Transfer Fee | $300 |
| Real Estate Commission (6%) | $48,000 |
| Prorated Taxes/HOA | Varies |
| Mortgage Payoff | Varies |
Estimated Total without Broker Commissions, Prorations, Payoffs): ~$6,200
Approximately 0.8% of Sales Price
$1,200,000 Home Sale
| Item | Estimated Cost |
|---|---|
| Title & Escrow Fees | $625 |
| Doc & Deed Prep | $150 |
| Tax Certificate | $75 |
| Owner’s Title Policy | $6,500 |
| Home Warranty | $500 |
| HOA Transfer Fee | $300 |
| Real Estate Commission (6%) | $72,000 |
| Prorated Taxes/HOA | Varies |
| Mortgage Payoff | Varies |
Estimated Total without Broker Commissions, Prorations, Payoffs): ~$8,200
Approximately 0.7% of Sales Price
Remember
- Prorated items and mortgage payoffs are unique to each transaction and will be calculated based on your actual closing date and loan balance.
- The owner’s title policy is typically the only fee that increases substantially with a higher sale price.
- Commissions and other fees are often negotiable—ask David Edgerton for details!
Interested in Selling or Need a Net Sheet?
We’re here to help! Contact us for a personalized estimate of your closing costs or a detailed seller’s net sheet for your property.
Or, you can try out a free online closing cost calculator here.
