What Will I Net? Texas Seller Closing Costs, Line by Line
How to estimate your net proceeds when selling a Houston home: mortgage payoff, negotiable agent compensation, title policy, escrow fees, prorated taxes, HOA, repairs and survey.
your net proceeds are roughly sale price − mortgage payoff − selling costs ± prorations. The tricky part is knowing what goes into "selling costs." Here's every common line for a Houston-area sale, what it is, and which parts are negotiable.
Details checked November 1, 2026. Rules, programs and numbers change, so verify with the source before you rely on them.1. Mortgage payoff and other liens
Your payoff is usually more than the balance on your statement. It includes interest through the payoff date and any lender fees. Home equity loans, tax liens and judgments also have to be paid. Under the standard TREC resale contract, the seller pays to release existing liens, including any prepayment penalties and recording fees.
Tip: request a payoff estimate from your lender early. The title company orders the official payoff before closing.
2. Agent compensation (negotiable)
In Texas, brokerage compensation is not set by law and is fully negotiable. That language appears right in the TREC resale contract. What you pay your listing broker is agreed in writing in your listing agreement. Separately, you may choose to contribute toward the buyer's broker. That's also negotiated, and it's written into the contract.
There is no "standard" percentage, so don't plug in a guess. Use the number you actually agree to.
3. Owner's title policy
Title insurance protects the buyer against ownership problems that existed before the sale. In Texas, title insurance premiums are set by the Texas Department of Insurance, so every title company charges the same premium for the same price. Who pays for the owner's policy is negotiable. The TREC contract has a box for seller or buyer.
4. Escrow and closing fees
Under the standard TREC contract, the title company's escrow fee is split in half between buyer and seller. Sellers also typically pay for tax certificates, deed preparation and lien release recording. Unlike the title premium, escrow fees can vary between title companies.
5. Prorated property taxes
Texas property tax bills generally go out in the fall and are due by January 31 of the following year, so taxes are paid in arrears. At closing, current-year taxes are prorated through the closing date: you're charged for the days you owned the home, and that amount is credited to the buyer.
If your lender escrows your taxes, any leftover escrow balance is refunded to you after the loan is paid off. That happens separately from closing.
6. HOA dues and fees
Regular HOA dues are prorated through closing. Homes in a mandatory HOA usually need a resale certificate, and there may be transfer or other association fees. The HOA addendum spells out who pays.
7. Repairs and concessions
After the buyer's inspection, you may agree to make repairs, give a credit or adjust the price. You may also agree to pay part of the buyer's closing costs. All of these are negotiated, so plan a cushion for them.
8. Survey
The TREC contract lets a seller provide an existing survey plus a T-47 affidavit (or T-47.1 declaration). If the title company or lender won't accept it, a new survey may be needed, and the contract says who pays. Dig out the survey from when you bought.
Other possible lines
These can include a home warranty for the buyer if you offer one, final utility bills, and any special assessments. Your title company lists everything on your settlement statement. Ask to see an estimate before closing.
Putting it together
- Start with a realistic sale price from a custom market analysis.
- Subtract your payoff and any other liens.
- Subtract agreed compensation, your title and escrow costs, and any repairs or concessions.
- Adjust for tax and HOA prorations.
Frequently asked questions
What closing costs does a seller pay in Texas?
Commonly: loan payoff and lien releases, agreed broker compensation, half the escrow fee, tax certificates and deed preparation, prorated taxes and HOA dues, and any agreed repairs or buyer contributions. Who pays for the owner's title policy is negotiable.
Is real estate commission set in Texas?
No. Brokerage compensation is not set by law and is fully negotiable.
Who pays for the title policy in Texas?
The buyer and seller negotiate it. The TREC contract has a checkbox for either party. Premiums are set by the Texas Department of Insurance.
How are property taxes prorated at closing in Texas?
Current-year taxes are split through the closing date. Because Texas taxes are paid in arrears, the seller usually credits the buyer for the seller's share of the year.
Will I get my escrow balance back?
If your taxes and insurance are escrowed, your lender typically refunds the leftover balance after payoff.
How accurate is a net sheet?
It's an estimate. Your title company's settlement statement shows the final numbers.
Sources: TREC Resale Contract 20-19 · TDI Title Insurance FAQ · Texas Comptroller: Paying Your Taxes
Equal Housing Opportunity · Brokered by Walzel Properties · TREC Information About Brokerage Services · TREC Consumer Protection Notice. This article is general information, not legal, tax or financial advice.