What will it REALLY cost to sell my house in Texas?

Janice, a long-time San Antonio resident, was ready to sell her family home. She thought she'd make a good profit, thanks to the hot Texas real estate market. But, as she looked into it more, she was surprised. The costs of selling her house were higher than she expected.

There were real estate agent commissions and property taxes to consider. Janice's experience is similar to what many homeowners go through. Let's explore the real cost to sell a house in Texas.

Selling a home in Texas is more than just setting a price and waiting for offers. It involves various fees and expenses that can reduce your profits.

How much does it cost in fees and commissions?

According to Ramsey Solutions, "Sellers can expect to pay around 6–10% of the home’s purchase price (including real estate agent commissions)."

For a typical Texas home priced around $345,000, sellers might face closing costs of up to $34,500.

This is a significant amount that can surprise many home sellers. Real estate agent commissions and title insurance are just a couple of the costs that add up fast in the Texas market.

Key Takeaways

• Selling closing costs in Texas typically range from 6% to 10% of the home's sale price
• Real estate agent commissions are often the largest expense, usually 5-6% of the sale price
• Property taxes and title insurance are significant costs for Texas home sellers
• Closing costs can reach over $30,000 for a median-priced Texas home
• Understanding all expenses is crucial for accurately estimating net proceeds from a sale

If you already know you do not want to pay this much to sell your house, don't worry. We will also cover your options when it comes to avoiding seller closing costs. One such option is to sell to cash home buyers in San Antonio. This is a great option when you want to sell your house fast and skip the hassles of a traditional sale.

What Closing Costs Do Sellers Pay in Texas?

Closing costs when selling a home can affect your profit dramatically. It's important to know about them before you begin your home selling journey.

Closing Costs Overview

In Texas, sellers usually pay 6-10% of the home's sale price in closing costs. Real estate commissions take up most of this, at around 5-6%. Title insurance is also a big expense, costing 0.7-1% of the property's value.

Escrow fees, which are often shared with the buyer, can be 1-2% of the sale price.

Many buyers will require the seller to pay closing cost assistance. This can range from 1-3% of the sale price.

I know, it's a lot!

Don't let this scare you away from having your house for sale. We will cover some ways to eliminate some of these fees quite considerably.

Average Closing Costs for Texas Home Sellers

Let's look at an example of an average Texas real estate transaction. We will use a typical sales price for a home in San Antonio, Texas. For a $300,000 home for sale, sellers might pay $18,000 to $30,000 or more in closing costs.

Let's break this down:

• Real estate agent commissions can be $15,000 to $18,000.
• Title insurance could be $2,100 to $3,000.
• Property taxes could be $3,000 to $5,000 depending on how late in the year you sell
• Escrow fees could be $1,000 to $2,000.
• Closing Cost Assistance could be $3,000 to $9,000

Hidden Closing Costs to Consider

Some costs surprise sellers. These hidden costs of selling a house might not be required, but it's good to be aware of them. Home inspections can cost $375 to $575. Offering a home warranty can add $600 to $1,000.

Don't forget about paying off your mortgage and possible prepayment penalties.

• Real estate appraisal fees
• Lawyer fees for complex sales
• Negotiating costs for repairs

Knowing about these costs helps you plan and negotiate better. Some costs can be negotiated, so look for ways to avoid these fees. We will cover some tactics to reduce seller closing costs in Texas later in the article.

Real Estate Agent Commissions in Texas

When you're selling your home in Texas, knowing about real estate agent commissions is key. These fees can greatly affect how much cash you get from the sale. We'll look into the usual rates, how you can negotiate, and what agents do for you.

Standard Commission Rates

In Texas, the usual real estate commission is 6% of the home's sale price. For a $345,000 property, this means about $20,700 in commissions. The National Association of Realtors says this fee is often split between the buyer's and seller's agents.

Negotiating Commission Fees

Commission rates aren't fixed. Homeowners can talk about the fees, especially for expensive homes or when using one agent for buying and selling. Some sellers choose discount brokers or flat-fee services to cut costs. An instant buyer might offer a simpler process with different fees.

Will the NAR Settlement Affect My Closing Costs When Selling a House in Texas?

We believe it will be easier to negotiate lower commissions for home sellers in Texas or anywhere. You could get an experienced real estate broker for much lower commissions.

According to Heather Sullivan in an article for Fox 7 Austin, "The National Association of Realtors says agent fees have always been negotiable. But its proposed settlement to lawsuits alleging a fee conspiracy, will end the practice of home sellers automatically paying both the seller's agent and buyer's agent fees, usually totaling 6%. Resulting competition among agents is expected to drive down commissions."

Value Provided by Real Estate Agents

If you choose to sell a house without an agent, you might want to consider what you will be missing out on. Real estate agents provide many valuable services that justify their fees:

• They analyze the market to set a good price for your home.
• They use marketing strategies to draw in potential buyers.
• They negotiate to get you the best sale price.
• They handle all the complex paperwork, like deeds and homeowner association documents.

Even though the commission seems high, a skilled agent can often get you a better sale price. They offer advice on incentives to draw in buyers and help you through the Texas real estate process.

Do I Need an Agent to Sell My House in Texas?

Selling your home in Texas doesn't require a real estate agent. Many homeowners choose to sell without an agent to save on commission fees.

You'll need to do these things yourself:

• Setting a competitive price
• Marketing your property
• Negotiating with buyers
• Handling legal documents

If you want to sell your house yourself, flat-fee MLS listing services can be a good choice. These services let you list your property on the Multiple Listing Service and popular websites. It's a way to get your home seen without hiring a full agent. Rather than paying 5-6% real estate commissions, you usually just pay a flat fee around $995.

Think about how comfortable you are with real estate transactions. If you're sure you can handle it and have the time, selling by yourself might work for you. If you're not sure whether now is the right time to sell your house, you can always contact us to get a no-obligation cash offer and then decide.

Home Preparation and Repair Costs

Repairs costs associated with selling your house usually get missed. Getting your house ready for sale in Texas can cost a lot. Buyers want homes to be in great shape. Sellers often pay out-of-pocket to meet these high standards. You likely have some repairs or updating necessary to sell your Texas house.

In cities like San Antonio, the cost to prepare your home varies. You might spend between $1,000 and $5,000. This covers minor repairs, deep cleaning, and staging. The final cost depends on your home's condition and how competitive the market is.

Typical repairs needed to help you sell quickly:

• Minor repairs (paint touch-ups, fixing leaky faucets)
• Professional cleaning
• Landscaping improvements
• Staging (if needed)

Think about getting a home warranty. It can make your home more appealing to buyers. Many companies offer this, with prices based on coverage.

According to Kristen Hampshire and Kelly Burgess in a piece for USNews, "Sellers may be inclined to purchase a home warranty if it’s a buyer's market. It can serve as another factor to sway buyers."

These costs are investments in making your home more marketable. They can help sell your home faster and for a better price. Think about your budget and the potential return before deciding on improvements.

Does Seller Pay Property Taxes at Closing in Texas?

When you sell a home in Texas, property taxes are a big part of the closing process. Who's responsible to pay property taxes, you or the buyer?

Property Tax Obligations in Texas

In Texas, property taxes are paid after the fact. Sellers must pay taxes that are owed up to the closing date.

Tax Prorations at Closing

At closing, sellers give buyers a credit for their share of the annual taxes. For instance, if the yearly taxes are $3,600 and the sale happens on June 30, the seller credits the buyer $1,800. This prorated amount is part of the closing costs and changes the market value of the sale.

Impact on Selling Costs

The average property tax rate in Texas is 1.81% of the home's assessed value, but it varies by county. This can greatly affect your selling costs. When listing your home through a multiple listing service or flat-fee MLS, remember to include these tax costs.

Most sellers escrow their taxes with their lender, so this might not be an issue for you.

Marketing and Advertising Expenses

Selling a house in Texas comes with marketing costs. These costs change based on how you sell your house. If you use a Texas real estate agent, they usually cover marketing costs. This can ease sellers' worries about closing costs.

• Professional photography: $100-$300
• Virtual tours: $200-$400
• Yard signs: $20-$50
• Online listing fees: Vary by platform

You can sell your house online for free by reaching out to cash house buyers. More about that in a bit.

Some flat-fee MLS services offer basic marketing in their packages. These can cost from $100 to $1,000 or more. It's important to think about these costs when figuring out your property's value.

An automated valuation model can estimate your home's worth. But it might not consider recent upgrades or unique features. Real estate economics affect the best marketing strategies for your area.

Marketing costs add to your selling costs but are an investment. They help attract buyers and get the best price for your Texas home.

Home Staging and Professional Photography Costs

Staging and professional photography often help a home stand out and sell faster. Let's look at the costs and benefits of these important tools for selling your Texas home.

Benefits of Home Staging

Home staging makes your property look like a model home. It lets buyers see themselves living there, which can lead to faster sales and higher offers. Staging costs can be from $500 to $2,000 in Texas for the first setup. Renting furniture each month can add $500 to $1,500 to your selling costs.

Professional Photography Pricing

Good photos are a must for selling your home online. Photographers charge $100 to $300 for a shoot in Texas. This investment can make your listing stand out and draw in more buyers.

We believe this cost to selling your house is definitely worth the money!

Virtual Staging Options

Virtual staging is a budget-friendly choice for owners wanting to keep costs down. It costs $30 to $100 per room. This is a great option if you're selling your Texas home from afar.

"Virtual staging gave my listing a competitive edge without breaking the bank. It definitely helped sell my home faster."

Investing in staging and photography sets your Texas home sale up for success. These services can help you get a better sale price and sell faster. They're key parts of a good selling strategy.

Moving Costs and Relocation Expenses

When selling your home in Texas, remember to include moving and relocation costs. These costs can greatly affect your selling budget.

Moving costs in Texas depend on the distance and how much you're moving. Local moves within the city can cost between $300 and $1,500, based on the average Texas local move. Moving over a longer distance in the state might cost more than $5,000. These costs are important when figuring out your total selling expenses.

There are other costs to think about too:

• Packing materials: $100-$300
• Storage fees: $50-$300 per month
• Utility transfer fees: Varies by provider

As a seller, these moving costs aren't usually part of your closing costs in Texas. But, they're crucial for your budget. Planning for these costs helps avoid surprises and makes selling smoother.

Strategies to Reduce Selling Costs in Texas

Let's look at some ways Texas sellers can lower closing costs and make more money.

For Sale By Owner vs Traditional Selling

Selling your house yourself can cut the 3% commission fee for listing agents. But, it takes more time and effort. Sellers must think about the savings versus the help of a professional in the complex selling process. If your buyer does not have an agent, you could completely remove the typical 6% real estate agent commission!

Discount Brokers and Flat-Fee Services

Discount brokers charge lower commissions, usually between 0.5% to 2%. Flat-fee MLS services cost a fixed amount, from $100 to $1,000. These choices can greatly lower costs for sellers in Texas while still offering important services.

Negotiating Seller Concessions

In a seller's market, sellers might ask buyers to cover more closing costs. This can help offset some selling costs. Always talk about these options with your real estate expert to follow Texas rules.

• Compare traditional and alternative selling methods
• Research discount brokers and flat-fee services in your area
• Consider market conditions when negotiating concessions

By looking into these cost-saving tips, Texas sellers can cut their expenses and possibly increase their profits from selling a home. Always weigh the good and bad of each option to make a choice that fits your situation and goals.

Sell Your Texas Home to a Cash Buyer

If your house needs repairs and you want a super fast sale, consider selling to a local house buying company. Companies that buy houses, like Danny Buys Houses in San Antonio, TX, make it easy to skip most of the costs of selling your Texas house. That is because we pay cash and pay most normal closing costs.

A cash buyer is how you sell a house as is without making any repairs.

The downside is that most professional house buyers will usually offer less for your home than you might get if you were to list with an agent. Of course, the costs saved by not selling the traditional way, can make that a wash.

This option isn't for everybody, but you value a quick closing and avoiding the hassles of selling your home, it is option worth looking into. This is also a great option if you are looking to sell your house from out of state.

Calculating Your Net Proceeds from a Texas Home Sale

Texas home sellers often wonder about their potential earnings after closing. To get a clear picture, you need to calculate your net proceeds. This involves subtracting all selling costs from the final sale price of your home.

Let's break down the process with an example. Imagine you're selling your home for $345,000 in Texas. The average cost of closing for sellers is about 8% of the sale price. This amounts to $27,600 in total closing costs, including real estate agent commission and other fees.

If you have a remaining mortgage balance of $200,000, here's how the math works out:

• Sale price: $345,000
• Closing costs: $27,600
• Mortgage balance: $200,000
• Net proceeds: $117,400

This is a simplified example. Your actual net proceeds may vary based on factors like local market conditions, negotiated terms, and specific costs in your area. To get an accurate estimate, consider using online calculators or consulting with a real estate attorney or agent familiar with Texas home sales.

Remember, every home sale is unique. Factors like home improvements, seller concessions, and timing can all impact your final takeaway. By calculating your potential net proceeds early in the process, you'll be better prepared to navigate the complexities of selling your home in Texas.

Conclusion

Selling a house in Texas can be expensive, with costs often between 6-10% of the sale price. For sellers in the Lone Star State, you can avoid a lot of these closing costs by selling your house yourself, without an agent.

It's important to know what you'll need to pay as a seller. Whether you work with a real estate agent or sell on your own, understanding your costs is key. Remember, saving money is good, but making sure the sale is legal and smooth is also crucial.

By considering your options and planning ahead, you can make the most of your Texas home sale. Just make sure to look into local market conditions and talk to experts for the latest info on selling costs in your area.

If you would like a fair cash offer for your Texas home, contact us at Danny Buys Houses by giving us a call or filling out the fast offer form. We look forward to speaking with you.