Your Complete Guide to Texas Home Selling Costs
Aug 11, 2025
Picture this: You've accepted an offer on your Texas home for $400,000, and you're already planning how to use those funds for your next chapter. Your dream vacation? A no-expense-spared kitchen in your next house? Then reality hits at the closing table: After commissions, closing costs, and surprise expenses, you're walking away with $40,000 less than expected. That open kitchen? That trip to Peru? Now they’re out of reach.
But when you know exactly what selling costs to expect, you can negotiate smarter, time your sale better, and choose the selling method that actually maximizes your proceeds. Here are the costs you should expect when you sell your house in Texas, plus how to save you thousands in unnecessary expenses.
Need to sell now? Get a strong cash offer on your home today.
When homeowners sit down to calculate their selling costs, the numbers can be eye-opening. The average seller spends $55,000 selling their home, and 42% of sellers expected that number to be lower.
Agent commissions are one of the biggest contributors to closing costs. According to recent data, Texas sellers pay an average of 5.64% in real estate commissions, slightly above the national average. Next, add in closing costs, which Chesley Lewis, Regional Director of Sales at Mark Spain Real Estate in Dallas, says typically run about 1.5% of the purchase price.
The good news? Texas doesn't impose a state real estate transfer tax, which is a fee many states charge when property ownership changes hands. That saves you significant money compared to other states. Those closing costs comprise:
One unique aspect of Texas closings is the state's high property tax rates, with an effective tax rate of 1.36% annually, depending on your municipality. That’s one of the highest property taxes in the nation. Since property taxes are prorated at closing, selling mid-year can mean a substantial payment.
Agent commission fees might seem steep, but professional representation typically yields higher sale prices that more than offset these costs. Commission is split between the listing and buyer's agents, each earning, on average, 2.82%. This investment provides you with professional photography, strategic marketing, expert negotiations, and protection from legal pitfalls.
Remember, all commissions are negotiable. However, the level of service often correlates with the commission structure. Full-service agents who charge standard rates typically provide comprehensive marketing packages, handle all showings, and negotiate aggressively on your behalf. Fee-only agents may provide no or limited marketing.
Real estate market dynamics significantly affect your bottom line. Texas homes now take a median of 53 days to sell, an 11% increase from 2024, making carrying costs a major financial consideration.
This cooling market also means more sellers are offering concessions. Dallas-area sellers provide seller concessions in 49.3% of transactions. These sweeteners might include covering buyer closing costs or funding mortgage rate buydowns.
Commissions and standard closing costs are predictable, but unexpected expenses can derail your financial plans when you’re preparing to sell. These hidden expenses include surprise repairs and monthly carrying costs, and can add thousands to your selling costs. Budget realistically to avoid scrambling for funds later.
Whether you're planning to sell as-is or make improvements, certain updates can significantly impact your sale. Lewis frequently recommends replacing old flooring, painting the walls, and updating landscaping to add curb appeal. Plus, sellers may find must-fix problems during inspections.
Not all pre-listing improvements pay off. Data shows that 26% of Texas sellers who invested in pre-sale renovations didn't recoup their costs; only 20% did. The key is focusing on high-ROI projects. Replacing an old garage door can return 194% of its cost, while major kitchen renovations might only recoup about 50% of the cost.
Every month your home sits on the market costs money. Lewis estimates carrying costs at approximately $3,500 monthly for a typical home. That includes:
With homes taking longer to sell, these carrying costs can easily add $7,000-plus to your selling expenses.
The days of sellers calling all the shots are behind us. Lewis observes a significant shift: Sellers used to tell buyers to fix it themselves. “Right now, with the average days on market growing longer, sellers just want to be out and be done with it,” she says. That makes a buyer credit significantly more appealing.
Buyers are also becoming pickier about minor issues. "They’re asking sellers to paint and do all these other repairs, where normally they wouldn't," Lewis says. This increased scrutiny means it’s essential to budget for potential concessions.
"Texas has foundation problems," Lewis says. Often, "The seller is going to have to do some foundation repairs before selling or prepare to provide a closing credit."
These foundation concerns, caused by Texas's expansive clay soil, can result in substantial unexpected costs or credits at closing.
The difference between sellers who net their expected proceeds and those who lose thousands often comes down to strategic decisions made early in the process. These proven strategies can help you keep more money in your pocket without compromising your sale.
Strategic pricing is your most powerful tool for controlling costs. While over 58% of sellers eventually reduce their listing price, the good news is that Texas homes typically sell for 97.4% of the asking price.
"Make sure that you have a really great price when you go on the market,” Lewis says. “If you go on the market with the wrong price, then ultimately, all you're doing is helping other listings sell instead of your own." If you’re overpriced, the comparable house down the street listed for $15,000 less looks incredibly attractive.
Overpricing leads to extended market time and increasing carrying costs. Had you priced correctly from the beginning, you might have netted more in the end.
Texas market data reveals that timing significantly impacts both sale speed and price. Homes listed in May sell about nine days faster than average, potentially saving a month of carrying costs. June sales command the highest prices, averaging $18,563 more than the yearly average.
Conversely, winter listings face longer market times and lower prices, with January sales fetching $13,687 below annual averages.
There are many different ways to sell a house, each with its own cost structure and potential returns. The key to maximizing your proceeds lies in understanding the true benefits of each approach. Here’s what you can realistically expect from each option in today's Texas market.
Full-service representation typically costs 5.64% in commissions plus 1.5% in closing costs and any other holding costs or buyer concessions necessary. However, agent-assisted homes sold for a median of $435,000 nationally, compared to just $380,000 for FSBO (for sale by owner) properties. Our agents take time to understand your unique situation so they can market your home to the right buyers.
Lewis says this holds true in Texas. "Sellers are always going to walk away more by selling their home traditionally," she says
In Dallas-Ft. Worth, cash buyers comprised 13.4% of 2024 sales, a small decline from 2023. These buyers offer speed and certainty but may pay less than market value. However, when factoring in carrying costs and market conditions, the net difference may be smaller than expected.
Extended selling periods can erode the advantage of traditional sales, Lewis says. For one buyer she worked with recently, "the average days on market and potential holding cost meant they would almost break even" by taking a cash offer versus selling traditionally.
Mark Spain Real Estate's unique approach gives you something most agencies can't: multiple paths to sell, all through one trusted agent relationship. Our agents will present all of your options with complete transparency, so you can make the right financial decision for your family.
We offer three options:
Our flexibility lets you compare real numbers, not hypotheticals. You'll see exactly what each path means for your net proceeds, timeline, and stress level, so you can make the right choice.
Budget 10% of your expected sale price for total selling costs. This cushion helps cover unexpected repairs, extended market time, or necessary concessions. Having reserves prevents financial stress during the transaction.
But what if you need to sell but don't have cash for repairs or upfront costs? That can be a difficult challenge, but certainly not impossible. While there's no one-size-fits-all solution, sellers do have options:
Experienced agents minimize unnecessary costs through:
Selling your Texas home involves numerous costs, but preparing transforms potential surprises into manageable line items. While the total cost of selling your home might seem daunting, remember that professional representation typically generates sale prices that more than compensate for the expense.
The key is investing wisely in services and improvements that maximize your net proceeds. Whether that means pricing strategically to minimize carrying costs, focusing on high-ROI improvements, or exploring alternative selling methods, knowledge empowers better decisions.
Mark Spain Real Estate's transparent approach ensures you understand every cost upfront, letting you make informed choices aligned with your financial goals, timeline, and personal needs.
Ready to see exactly what you'll walk away with when you sell your Texas home? See your personalized selling options with real numbers. Contact Mark Spain Real Estate for a free, no-obligation consultation. Whether you're looking for top dollar through traditional listing or need the speed and convenience of a cash offer, we'll show you all your options and the real numbers behind each one.
Simply enter your home address to get the strongest cash offer on your home.
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