# The Hidden Costs of Selling a Home in Texas

When homeowners in Burleson or the broader DFW Metroplex decide to sell, their first calculation is usually simple arithmetic: estimated sales price minus current mortgage balance equals net profit.

In reality, selling real estate involves several transaction expenses that reduce your final payout at the closing table. In the United States Marine Corps, we learned that unexpected variables destroy operational plans. In real estate, unexpected financial surprises ruin selling strategies.

Understanding seller expenses ahead of time prevents last-minute surprises and helps you set realistic financial expectations. Here is a clear, transparent breakdown of the costs involved when selling a home in Texas.

## 1. Brokerage and Agent Commissions

Real estate agent commissions represent one of the primary costs of selling a home. Commission fees compensate real estate professionals for marketing, positioning, contract negotiation, legal disclosures, and transaction management.

In traditional Texas real estate transactions, commission rates are negotiable between the seller and the listing broker. The total commission fee is typically divided between the listing brokerage representing the seller and the buyer's brokerage representing the buyer.

On a $400,000 home sale, a typical 5 percent to 6 percent total commission equals $20,000 to $24,000. Working with an experienced agent ensures your home is priced accurately, marketed professionally, and negotiated effectively to protect your bottom line.

## 2. Seller Closing Costs and Title Expenses

Seller closing costs in Texas usually range between 1 percent and 3 percent of the home's total sale price, separate from real estate commissions.

### Owner Title Policy
In Texas custom, sellers customarily pay for the buyer's Owner Policy of Title Insurance. This policy guarantees that the title is clear of liens, boundary disputes, or ownership defects. On a $400,000 home, the title policy cost is regulated by the Texas Department of Insurance and typically runs around $2,000 to $2,300.

### Escrow and Settlement Fees
Title companies charge escrow fees to handle financial transfers, contract paperwork, and legal recording. Escrow fees are generally split evenly between seller and buyer, usually costing the seller $400 to $700.

### Survey Fees
If you cannot locate an existing property survey or if you made exterior improvements (such as adding a pool, fence, or storage building), the title company or buyer's lender may require an updated survey. A residential property survey typically costs between $450 and $800.

## 3. Prorated Texas Property Taxes

Texas does not have a state income tax, which means local property taxes are higher than national averages. Property taxes in Texas are paid in arrears at the end of each calendar year.

At closing, the title company calculates a prorated tax credit based on the exact number of days you owned the home during the current calendar year. That prorated amount is credited directly from your proceeds to the buyer, who will pay the full tax bill when it arrives at year-end.

For example, if your annual property tax bill is $8,000 and you sell your home on July 1 (182 days into the year), you owe approximately $4,000 in prorated property taxes at closing.

## 4. Pre-Listing Repairs and Option Period Concessions

Preparing a home for market requires upfront capital, and post-inspection negotiations can add unexpected costs.

### Pre-Listing Repairs and Touch-Ups
Before placing your property on the market, you may need to invest cash in minor paint touch-ups, carpet cleaning, landscaping, or fixture replacements. These minor investments usually range from $500 to $2,500 depending on home condition.

### Option Period Repair Credits
Under standard Texas Real Estate Commission (TREC) contracts, buyers pay an option fee for an exclusive inspection window (usually 5 to 10 days). Following inspections, buyers often request repairs or financial credits toward closing costs. Negotiating reasonable repair allowances or cash credits keeps transactions moving forward without requiring you to manage contractors yourself.

## 5. Home Staging, Professional Media, and Moving Costs

Presenting your home effectively in high-definition photography and online video tours requires careful preparation.

### Staging and Professional Media
While top-tier listing agents cover professional photography and media marketing as part of their listing service, physical staging for vacant homes can carry costs. Renting staging furniture and decor for a vacant home can range from $1,500 to $3,500 depending on home size and contract duration.

### Moving Expenses
Do not forget the physical cost of moving your family and belongings out of the property. Local moves in the DFW area using professional movers range from $1,000 to $3,000, while long-distance or military moves can cost significantly more.

## 6. Seller Concessions and Buyer Closing Cost Assistance

In shifting or balanced real estate markets, buyers often request seller concessions to help cover their loan closing costs or to purchase interest rate buydowns.

Sellers are not obligated to grant these requests, but agreeing to seller concessions (such as 1 percent to 3 percent of the purchase price toward buyer closing costs) can help complete a sale, especially when dealing with buyers using FHA or VA financing.

## 7. Federal Capital Gains Tax Considerations

While not a direct closing expense at the escrow table, capital gains taxes can affect your net profit if you do not plan ahead.

Under IRS rules, single homeowners can exclude up to $250,000 in capital gains profit (up to $500,000 for married couples filing jointly), provided the home was owned and occupied as your primary residence for at least two out of the five years preceding the sale.

If you lived in the home for less than two years or if the property was held purely as an investment, capital gains taxes may apply. Always consult a qualified CPA or tax advisor regarding your specific situation.

## Calculate Your True Net Proceeds

Selling a home in Burleson or the DFW area involves more than simple subtraction. By accounting for agent commissions, title fees, prorated property taxes, and potential buyer concessions, you can accurately forecast your net proceeds at closing.

As a retired Marine and licensed real estate agent with Compass, I provide sellers with detailed estimated net sheets before listing, ensuring complete transparency at every stage of the process.

Send me a message, and lets connect.

Mike Ritrovato | Compass | Retired Marine
760-468-7930 | Mike.Ritrovato@Compass.com
TREC License #0797145
Serving Burleson and the DFW Metroplex