What Does It Cost to Sell a Home in Austin?

A complete guide to seller closing costs and net proceeds

Most sellers who have owned their home for a few years remember what it felt like to buy it. You paid your down payment, covered your share of closing costs, and got the keys. What many sellers forget is that selling comes with a completely different set of costs, and the numbers can catch people off guard if they are not prepared.

This post covers every cost you can expect to pay as a seller in Austin, how to estimate each one, and what a realistic net proceeds figure might look like at different price points. Think of it as the conversation you would have with your agent before ever putting a sign in your yard.

One thing to note upfront: this focuses on the costs you will pay at the closing table through the title company. Pre-listing expenses like repairs, staging, and cleaning also affect your bottom line, and we cover those toward the end.

Real Estate Commission

Commission is almost always your largest single closing cost, so understanding how it works, especially in light of some major changes that took effect in August 2024, is a good place to start.

For decades, sellers in Texas paid both their listing agent’s commission and the buyer’s agent’s commission out of the sale proceeds, typically totaling 5-6%. That changed following a landmark settlement with the National Association of Realtors.

How it works now

Today, buyers sign a separate written representation agreement with their own agent before touring homes. That agreement establishes how their agent will be compensated. As the seller, you negotiate and pay your listing agent’s commission directly. Buyer’s agent compensation is now a separate matter handled through the offer process.

In practice, many sellers in the Austin market still choose to offer some compensation to the buyer’s agent as part of their offer terms, because doing so tends to attract a larger pool of buyers. But the amount varies, and it is no longer automatically built into the listing side.

What this means for your budget:

• Listing agent commission: negotiated directly with your listing agent
• Buyer’s agent compensation (if offered): 0-3%, negotiated through the offer process

Your listing agent’s commission is something to discuss directly with them. The examples later in this post use 6% total (3% each side) as a middle estimate.

Owner’s Title Insurance Policy

This one surprises many sellers who have owned homes in other states: in Texas, it is customary for the seller to pay for the owner’s title insurance policy. In most other states, the buyer covers it.

The owner’s policy protects the buyer against future claims on the home’s title, things like undiscovered liens, errors in past deeds, or competing ownership claims. It is a one-time premium paid at closing that provides coverage for as long as the buyer owns the home.

Texas title insurance rates are regulated by the Texas Department of Insurance, which means the premium is the same no matter which title company you use. What varies from company to company is their service quality and closing fee, so it is worth asking around for recommendations, even though the title insurance rate itself is standardized.

Premiums are based on your sale price and are calculated according to the TDI rate schedule. For homes selling between $400,000 and $900,000 in today’s market, the owner’s policy typically runs approximately $2,400 to $4,800. Your title company can provide an exact quote once you have a price in mind.

Property Tax Proration

Texas property taxes are paid in arrears, which means you owe taxes for the portion of the year you owned the home through your closing date. At closing, the title company calculates what you owe and credits that amount to the buyer, who will pay the full-year bill when it comes due.

This proration can be one of your larger closing costs depending on when in the year you close. Property tax rates across the Austin metro area typically run between 1.8% and 2.5% of your home’s appraised value. The exact rate depends on your city, school district, and other local taxing entities.

As a rough example: on a home appraised at $600,000 with a 2.0% effective tax rate, your annual tax bill would be around $12,000. Closing in late June would mean about 6 months of proration, or approximately $6,000.

The factors that affect your specific proration:

• County appraised value: set by the central appraisal district, which may differ from your sale price
• Your effective tax rate: varies based on city limits, school district, MUD, and other taxing entities in your area
• Your closing date: the later in the year you close, the larger the proration

HOA Fees and Transfer Costs

If your home is in a homeowners association, expect some additional costs at closing. These vary significantly from one community to the next, which makes them the hardest line item to estimate without knowing your specific HOA.

Common HOA-related closing costs include:

• Transfer fee: paid to the HOA when ownership changes hands
• Resale certificate fee: Texas law requires the HOA to provide a resale certificate to the buyer before closing, and there is typically a fee to generate it
• Any unpaid dues or special assessments settled at closing

Because these fees vary so much, the most reliable thing you can do is contact your HOA directly before you list your home. They can give you the exact amounts, and they will need to produce the resale certificate during the transaction regardless. Do not wait until you are under contract to get this information.

Closing and Escrow Fees

The title company charges a fee for their role in facilitating the closing. This covers document preparation, coordinating signatures, managing funds, and processing the transfer. The seller’s portion typically runs between $500 and $800, though it varies by title company.

Home Warranty

A home warranty is not required, but it comes up frequently in Austin transactions. Buyers sometimes request one as part of their offer, and some sellers proactively offer one to make their listing more competitive, particularly if the home has older appliances or mechanical systems.

A standard one-year home warranty plan typically costs around $500. If you agree to provide one, the cost is paid through the title company at closing.

Other Fees to Know

• Recording fees: When the deed transfers, it is recorded with the county. This fee is typically $50-$100 and handled through the title company.
• Wire transfer fee: Most title companies charge $25-$50 to wire your net proceeds to your bank at closing.
• Survey: Buyers in Texas sometimes request a current survey of the property. If your existing survey is acceptable to the buyer and title company, there is no cost to you. If a new survey is needed, costs typically run $500-$900, and who pays is negotiated.

Costs That Won’t Appear on Your Settlement Statement

A few things that affect your bottom line will not show up as line items at closing. These are worth budgeting for separately.

• Pre-listing repairs and updates: Many sellers make repairs or cosmetic improvements before listing to maximize their sale price. The right amount to spend depends on your home’s condition, your price point, and the current market. Your agent can help you prioritize what will have the best return.
• Staging: Professional staging is optional, but it can make a meaningful difference in how quickly your home sells and at what price. Costs range from a few hundred dollars for a consultation to several thousand for a full-service staging package.
• Buyer repair requests: After the inspection, buyers often ask for repairs or a closing cost credit. The amount is negotiated and impossible to predict in advance, but most transactions involve some post-inspection give and take.

What You Might Actually Walk Away With

The examples below show estimated net proceeds at three different sale prices. These are starting-point estimates based on consistent assumptions, not predictions for your specific situation.

Assumptions used in all three examples:

• Total commission: 6% (3% listing + 3% buyer’s agent compensation offered as a concession)
• Property tax proration: assumes closing mid-year (6 months), using a 2.0% effective rate applied to the sale price
• Title insurance, closing fee, warranty, and recording fees are estimates
• HOA fees not included — contact your HOA for exact transfer and resale certificate amounts
• No mortgage payoff shown — subtract your remaining mortgage balance from the net proceeds figure to get your actual cash at closing

Example 1: $450,000 Sale Price

*Buyer’s agent compensation is now negotiated separately from the listing commission. This example assumes the seller offers 3% as a concession through the offer process.

Example 2: $650,000 Sale Price

*Same assumptions as Example 1 apply.

Example 3: $900,000 Sale Price

*Same assumptions as Example 1 apply.

Calculate Your Own Estimated Net Proceeds